What Are You Getting Paid for? Explaining Your Real Estate Agent Remuneration

Let's talk about money. Big commissions are why you got into real estate, but how do you justify the amount you charge for your services? "Why do I need a real estate agent?" is often the first question sellers ask themselves when thinking about selling their house. It is natural for the consumer to query their Realtor on how much commission they will pay. Commission on a $500,000 house can run anywhere from $20,000 to $30,000 — a large chunk of money! Highlight your value to give the consumer a better understanding of why it is important to use a professional real estate agent and forgo the FSBO route.

Experience

Completing a real estate sales contract relies heavily on the power of negotiation. What do real estate agents do better than anyone else? Facilitate sales. Naturally, some agents are better at closing deals than others. The experienced Realtor has a wealth of knowledge gained over time and can use that knowledge to connect with potential buyers. Driving engagement by implementing proptech tools like 3D virtual tours and targeting buyers through the right channels is valuable. The goal is to grab their attention and keep it there. Buyers want information in an easy-to-use format. The experienced agent knows that the combination of 3D tours and floor plans makes it easy to navigate a property to achieve a comprehensive understanding of the space. The longer the buyer interacts with the property, the higher the potential of a sale.

Quality marketing tools

Digital marketing demand has risen in recent years, and now it is expected that your listing services will offer a full package. According to a recent Zillow report, virtual tours rose 750% due to the demand to get up close and personal with residential property listings. Not only was the demand high, but without a 3D tour, your listing might get overlooked altogether. Sellers are the ones who pay your commission and, in return, you provide them with the latest proptech tools for marketing their home.

The "why do I need a real estate agent?" question can also be answered by sharing analytics from current and past sales. When the consumer sees and understands your marketing efforts, it is a whole lot easier to agree to pay the commission.

Due diligence

Due diligence is not just for the buyer. As a real estate agent, part of your responsibility is to provide information for every property. What do real estate agents do to ensure the accuracy of floor plans, room measurements and detailed information? Professional marketing services and real estate photographers use cutting-edge tools, like those offered by iGUIDE, to provide a host of data for every listing. According to Realtor.com, immersive 3D tours paired with great real estate photography and advanced measurements help sell houses.

Why is it so important to get the details correct? Conflict can often arise when properties are measured incorrectly. No one wants to end up in litigation over wrongly advertised square footage of a home. As the seller's representative, you want to do everything you can to get everything right — after all, it is your fiduciary duty.

Speed and limited disruption

Daily interruptions are not what your seller expects when they hire you to sell their house. The thought might be, "Why do I need a real estate agent if I have to continuously prep my house for anyone who sees the for-sale sign?" You can eliminate a lot of stress for your seller when using real estate marketing tools. iGUIDE gives you everything you need to market a house successfully. The average home can be photographed and measured while capturing a 3D tour in about an hour. Potential buyers can then access all the information they need directly from their device of choice, in their own time. Virtual tours engage the buyer and provide a wealth of information, essentially pre-qualifying them before booking a showing. Sellers benefit by having fewer disruptions in their daily schedules. Multiple studies from companies like Zillow and iGUIDE show that homes sell faster and at a higher price point when utilizing 3D virtual tours.

It's not a question of what do Realtors do, but rather how much do Realtors do. From outstanding digital marketing to superior negotiation, the best way to get a home sold is by using a professional. That's exactly why 92% of consumers choose a Realtor.