Your REALTOR ® is the LAST to get PAID!! TRUE or FALSE??

Dated: 10/31/2018

Views: 42

Michelle Ihegborow    Key

The Answer is TRUE!!

A commonly asked question once my clients and I are in the middle of inspections, after their contract has been accepted, is "When and How do we pay you?"

Glad you asked, is what goes through my mind. You might wonder why I don't discuss this with my clients during our first few interactions.  The answer is because there really is no appropriate way to incorporate this into a conversation when I am first meeting you.  You haven't even agreed to work with me yet.

Goals

Another reason I don't bring it up immediately is because my 1st goal is to build rapport with you by ensuring I understand your wants, needs, and to let you know I am listening.  My next goal is to walk you through the home-buying process.  It is important for us to build trust at this point because when I am explaining these steps you must believe I have your best interest at heart.  I want you to understand that your interest will ALWAYS come first and that my desires are to make sure you are as happy at the end of the transaction as you were in the beginning of the transaction.

Priorities

This is a big emotional, financial investment and your trust in me is the utmost priority.  The next step is to help you understand why speaking with a lender next is so important. Most Realtors will not move forward with a client or even show them property until the client has spoken to a lender.  I'm not like most Realtors, I will more often than not meet with you before you meet with a lender because I believe that a face to face with a potential client for me is important.  It is hard to get a true sense of someone over the phone.  A face to face will let me know how serious or motivated you are to buy a home and it also will let you know if you want to work with me.  During the face to face I like to explain to the client the home buying process and also talk to them about speaking with the lender, why this step is next, and why it is so important.  Once this step is taken then we can go look at houses.  Explaining these steps to you is more valuable to me than discussing my paycheck.  That comes in time.

The Breakdown

This is how things work in the State of Arizona.  My monies are negotiated on the seller's side when the sellers are getting ready to list their house with the listing agent.  The average percentage that goes to paying commissions is 6%.  The agents normally split this in half, the listing agent gets 3% and the buyer's agent gets 3%.  That 6% comes from the sale of the house.  So, the math goes like this.  Let's say the house sold for $100,000.   100,000 x 6%= $6,000.  $3,000 goes to the listing agent's brokerage from the title company and $3,000 goes to the buyer's agent's brokerage from the title company.  What is a brokerage you ask?  It is where an agent hangs their real estate license. On closing day, you are sign papers at the title company finalizing your transaction.  Once you sign those papers lender funds the loan.  Then, the documents from your transaction get recorded and escrow closes.  When recording happens and escrow closes I am now able to give you the keys to your new home.  Also, at this time once recorded and closed the title company than disperses funds to parties of interest such as seller, and brokerages. The brokerage first takes their agreed upon split (brokers and agents agree on a split when agents hang their license) then issues the agent a paycheck after they have subtracted their split from the 3% commission.

Keys, Relationship Transformation, and New Opportunities for Us

To bring it all in, you the client will get your keys before I get paid.  This is the greatest feeling for me is when I am giving you your keys.  That also brings us to the temporary end of our business relationship and hopefully the beginning of our new friendship.  I say the temporary end to the business relationship because my goal is to make sure that the experience was positive and that I am the only one that comes to mind when it's time to do it all over again because you are ready to sell the home you bought or you also want me to help you buy a home after you close on the one I'm also selling.  My business is built on referrals and if you have a great experience I'll be the first in mind when your friends and family members are thinking about buying or selling a home.  You'll be the one they ask since you are now the experts among your peers.

 

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Michelle Ihegborow

My goal are to walk you through the home buying or home selling process Step by Step. Ensuring that you have a clear understanding of the process by answering all of you questions and addressing all ....

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