Blog > What do real estate agents do that they don't get paid for?
Real estate agents provide an array of services that help clients buy or sell properties. Their roles include conducting market research and analysis to determine the right price for the property. They also help promote the property and secure a favorable sale or purchase agreement. However, not all work real estate agents do results in payment. Some of the services they offer are ‘no pay’ tasks but are critical for ensuring transactions progress smoothly. Real Estate agents ONLY get paid after a property closes. In this blog, we explore some of the work that real estate agents do but do not get paid for.
Showing Homes & Writing offers
Believe it or not, most real estate agents do not get paid for showing homes. The average buyer visits 8-12 homes over a 10-week period before they find "the one". That number can vary quite a bit. I've had a buyer purchase the first home they looked at, while I've spent months looking at over 40 homes with other home buyers. Eventually, we find the (almost) perfect home and write up an offer. In a Seller's Market like the one we are currently in (2023), an agent may write up several offers for a buyer client before they get one that is accepted. What about the buyer who puts in several offers that all get rejected and then decides that they want to give up and stop their home search? No pay for the agent.
Advice on Property Renovation
An essential service real estate agents offer is advising clients on renovation projects. They advise on the best remodeling projects that add value to the property, as well as those that do not. They inform clients of the latest trends in property updating and what buyers in the area are looking for. This service is essential to clients looking to renovate their property before selling it. It helps them net higher returns on investment and improve the chances of finding buyers. No pay for the agent until they get to the closing table.
Client Relationship Management (CRM)
Client relationship management is an integral part of real estate agents’ work, but it is not a paid-for service. It involves nurturing relationships with clients who may not be ready to buy or sell property yet. This service requires constant communication with clients, keeping them abreast of the latest market trends and property listings. Real estate agents have to be experts in their field, and knowledgeable on the local property market and changing economic trends. They have to provide valuable information that keeps clients engaged. Building lasting relationships is critical because they may drive more business in the future. But there is no pay for the agent until they get to the closing table.
Working on Deals that Fall Through
Real estate agents spend countless hours working on deals that end up falling through. It could be that a buyer cannot secure a mortgage or that a seller had a change of heart about selling their property. Unfortunately, this work does not result in payment, even though it is an essential part of the job. Real estate agents often have to deal with tense situations, including managing client’s expectations, handling difficult negotiation talks, and keeping clients motivated. They sometimes have to work double, trying to secure another deal. But there is no pay for the agent until they get to the closing table.
Marketing Properties
Marketing properties is part of a real estate agent’s job. However, not all promotional activities result in payment. For instance, an agent may create a YouTube video to highlight a property, but it may not lead to an immediate sale. Additionally, some marketing initiatives, such as running open houses, staging homes, custom property websites & signage, hiring a professional photographer, and having photographs edited, require money upfront running into hundreds, if not thousands, of dollars. Therefore, if the client decides not to sell and pulls their home off the market, real estate agents do not get reimbursed for the costs incurred during the listing period.
Real estate agents deliver a wide array of essential services to their clients. However, not all their work results in pay. They advise clients on renovation projects, manage relationships with clients, manage deals that fall through, and market properties. These are among the critical services that real estate agents deliver without immediate reimbursement. Nevertheless, they help them develop invaluable experience and knowledge of the market, which often translates to success and repeat business.
Advice on Property Renovation
An essential service real estate agents offer is advising clients on renovation projects. They advise on the best remodeling projects that add value to the property, as well as those that do not. They inform clients of the latest trends in property updating and what buyers in the area are looking for. This service is essential to clients looking to renovate their property before selling it. It helps them net higher returns on investment and improve the chances of finding buyers. No pay for the agent until they get to the closing table.
Client Relationship Management (CRM)
Client relationship management is an integral part of real estate agents’ work, but it is not a paid-for service. It involves nurturing relationships with clients who may not be ready to buy or sell property yet. This service requires constant communication with clients, keeping them abreast of the latest market trends and property listings. Real estate agents have to be experts in their field, and knowledgeable on the local property market and changing economic trends. They have to provide valuable information that keeps clients engaged. Building lasting relationships is critical because they may drive more business in the future. But there is no pay for the agent until they get to the closing table.
Working on Deals that Fall Through
Real estate agents spend countless hours working on deals that end up falling through. It could be that a buyer cannot secure a mortgage or that a seller had a change of heart about selling their property. Unfortunately, this work does not result in payment, even though it is an essential part of the job. Real estate agents often have to deal with tense situations, including managing client’s expectations, handling difficult negotiation talks, and keeping clients motivated. They sometimes have to work double, trying to secure another deal. But there is no pay for the agent until they get to the closing table.
Marketing Properties
Marketing properties is part of a real estate agent’s job. However, not all promotional activities result in payment. For instance, an agent may create a YouTube video to highlight a property, but it may not lead to an immediate sale. Additionally, some marketing initiatives, such as running open houses, staging homes, custom property websites & signage, hiring a professional photographer, and having photographs edited, require money upfront running into hundreds, if not thousands, of dollars. Therefore, if the client decides not to sell and pulls their home off the market, real estate agents do not get reimbursed for the costs incurred during the listing period.
Real estate agents deliver a wide array of essential services to their clients. However, not all their work results in pay. They advise clients on renovation projects, manage relationships with clients, manage deals that fall through, and market properties. These are among the critical services that real estate agents deliver without immediate reimbursement. Nevertheless, they help them develop invaluable experience and knowledge of the market, which often translates to success and repeat business.
Jim Armstrong
Broker/CEO
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Jim Armstrong
Team Leader/Broker Associate | License ID: 9074205
Team Leader/Broker Associate License ID: 9074205