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Realtors Claim Stories Unfair to Profession

December 28, 1986

I was disappointed with the article, "Good Agent Vital to Sale Of Home." I was shocked to read:

"If the offer is slightly below your asking price, you've got one more chance to reduce the agent's commission. Consider telling him you'll accept the lower price if he'll make up at least part of the difference by charging a smaller fee."

Every product merchandised has fixed expenses which are included in the calculation of the market price. Attacking the fee paid to the agent diminishes the value of the effort and adds to the misunderstanding of the worth of the good sales agent.

Agents invest time and their own money servicing their clientele. In other states, escrow details are handled by lawyers and others; in California it is the responsibility of the real estate agent. Most agents make less than the hourly minimum wage in their first years. They must be licensed by the state and pay for continuing education throughout their careers.

Assembling a successful portfolio of clients and properties can easily lead to working seven days a week, many hours each day.

The actual fee received by the agent is not 6% or 7% but 1 1/2% of the final commission. It is typical to represent a buyer or seller for 60, 90, 180 days and not consummate a sale and never be compensated for time and out-of-pocket expenses.



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