We've got a short message for you today, but it's an important one. In the last few weeks, the stock market has been going wild. This instability has pushed mortgage rates down below 4%! We aren't sure how long this is going to last so if you've been thinking about making a move, now is a great time to take advantage of these rates.
A lot of people are unfamiliar with how the real estate industry works. Since I'm often asked how I make my living in the real estate industry, I want to briefly walk you through commission splits.
Think about a real estate transaction commission like a pie. If you were to divide it up into four pieces, one piece would go to the listing agent, one would go to the broker that we work for, one would go to the agent working with the buyer, and then the last quarter goes to the brokerage of the buyer's agent. If we had a $4,000 dollar commission, each party in the transaction would get $1,000.
Each party that earns a commission is an independent contractor that is 100% performance based. If we don't get the job done, we don't get paid! Additionally, if we don't sell anything, we have to eat the costs of our expenses, which include marketing, health insurances, and other business expenses. So, in this business, it's crucial to be consistently productive, week in and week out, in order to stay afloat. We have managed to do this for years!
If you have any questions about the benefits of working with an experienced team, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!
