How Do You Explain Real Estate Commission to Clients?

Understanding the concept of a real estate commission is a crucial step when embarking on the journey of buying or selling a house. This fee, though it may initially seem complex and costly, plays a significant role in real estate transactions. It’s essential for clients to grasp what a commission is and what it signifies as they progress in their real estate dealings.

What is a Real Estate Commission?

The real estate commission is more than just a fee. It’s the financial recognition for the hard work and dedication of real estate agents and brokers. This compensation enables agents to provide their clients with a range of services, making the buying or selling process smoother and more efficient.

As RIS Media explores, real estate agents help clients with various tasks throughout the buying and selling process, and compensation for this assistance comes in the form of a commission. The real estate commission also represents all the years of experience and training that the agent has cultivated to help the client get the best possible price for the home they want to buy or sell. This training and experience help them become critical experts in real estate transactions so that their clients have a strong representation at the negotiating table.

What Does a Real Estate Agent Actually Do to Earn Their Commission?

Real estate agents can help clients with a variety of different tasks that make it easier for them to buy or sell a home. A real estate agent will help clients with tasks such as:

Offer pre-approval guidance: Those who have yet to navigate the process can ask their agents questions about obtaining mortgages and the pre-approval process.

Complete daily market research: Real estate agents also monitor local listings to stay current on properties and pricing.
Schedule showings: The real estate agent will also help the client set up showings so that the potential buyer can see the homes that most appeal to them.

Complete market analysis for sellers: If the real estate agent is helping a seller, the agent will help them analyze the market to determine a fair price.

Market the property: The real estate agent can also help sellers market their properties to attract the attention of the best potential buyers.

Write offers & negotiate contracts: When a client finds a home that fits them well, the agent will help them determine the best price to offer, negotiate with the sellers, and write up the offer to submit. There will often be negotiations with the home seller before an offer is accepted, and the real estate agent can help buyers understand and navigate the process; the client will have someone representing their interests.

The real estate agent can also help sellers negotiate, ensuring the client gets the best price and terms for their property.
Assist with home inspections: Home inspections are a critical part of the home-buying process, as they help new homeowners avoid large unforeseen costs and problems with the purchase. The real estate agent can help buyers set up and then work through this process and understand the inspector’s report.

How Real Estate Agents Can Boost Their Value

For real estate agents, continuing education can be vital to growing professionally. Continuing education can help real estate agents take their real estate practice to the next level so they can provide even better services for their clients. When you take these extra steps to improve your services to clients, it becomes even easier to justify your commission.

Key Realty is the best place for real estate agents who want to take their practice to the next level. It can help agents access the training tools they need to be more successful in the industry.