Real Estate Myths

My credo as a REALTOR® is to provide clients tools and resources so they can make the best decision for their family. A few weeks ago, I illustrated the true cost of a fixer upper and tried to provide a sense of reality to the TV programs that give an illusion of how easy it is to flip a house and earn more than comfortable living. Similar to the shows about flipping houses, there is also an abundance of ‘reality shows’ about the real estate profession. Scenes of two real estate professionals sipping mimosas by the grotto negotiating over million dollar homes then driving away in their Bugattis with their projected commission flashing on the TV screen would certainly make our profession look luxurious.

Although real estate has its ‘perks’ in scheduling and income potential, it comes with its share of risk, priority management, and an inherent need for discipline and hussle. I thank my colleagues and peers for their input on this solicited content as well. The local REALTOR® community is a tight knit group. We are very connected in the community volunteering for local causes, both with monetary and time/work donations. Our Board of Directors manage several committees that continually make a difference in the communities we work, play, serve, and live. Several of our members are involved with various non profit organizations peppered throughout the region. We, as a REALTOR® family, recognize we are part of something much greater than ourselves.

We do not work ‘traditional work hours’. We essentially work all day everyday by appointment, usually at the needs of our clients’ schedule. This means we don’t share the same TGIF mentality and often work evenings, weekends, and yes… holidays. I’m sure every REALTOR® has more than one story about taking time FROM their family to devote to the needs of their client during a holiday.

Recognition of this work/life balance may also shed some light on the disparity in income levels. Real estate can support someone who works 24/7, sets priority over everything else and lives and dies by the MLS. By contract, there are also REALTORS® who work at a part time level…maybe just looking for something else to do after retirement or supplemental income. Either way, like anything else in life… you get out what you put into it.

So, does JOSH FLAGG really drive away with that $100,000 commission check? If you catch a glimpse of our commission check at the closing table or on your closing disclosures, here are some factors to keep in mind. First, we do not draw a salary. We are 100% commission and we are not paid until the transaction is complete, which could be 60 days from contract ratification. Second, portions of that check go to our brokerage/agency, office fees, referral fees (if applicable), taxes, etc. We do not pocket the entirety of that check.

Like any other career path, real estate pays the bills and can provide a good living. Many of the REALTORS® I work with agree the greatest value in our job is providing a positive experience for our clients who are making one of the greatest financial decisions of their life at that time.

Until next week, love where you live. And if you don’t…contact your local REALTOR®.

Brian Haufe, 2022 MBOR President