THE UGLY TRUTH ABOUT BEING A TEXAS REALTOR…

Amidst the headlines and buzz surrounding real estate agent commissions, it's crucial to dispel misconceptions about what they do and how they earn. Allow me to unveil the truth for you.

“days, weeks, even years—with a client without any guarantee of a sale”

Last year, the average earnings for a full-time REALTOR were $31,900, investing 40+ hours per week. It’s important to note the + sign behind 40 hours, this isn't a part-time gig—this is a commitment. Yet, this income often falls below the living wage threshold. Unlike traditional jobs, REALTORS don't receive an hourly wage or salary; they only get compensated when a home sale closes, and the payment occurs exclusively between brokers.

This profession involves unpredictability. REALTORS might invest significant time—days, weeks, even years—with a client without any guarantee of a sale. Each day begins with a parallel to an unemployed individual going on job interviews, accompanied by the constant challenge of handling rejection.

Their dedication goes beyond business hours, involving sacrifices of family time, personal resources, and the luxury of regular vacations. The real estate world demands a 24/7 commitment; opportunities don't wait for convenient moments.

“Their dedication goes beyond business hours, involving sacrifices of family time, personal resources, and the luxury of regular vacations. The real estate world demands a 24/7 commitment; opportunities don't wait for convenient moments.”

When a sale finally happens, it's not a windfall. Half of the commission often goes to the buyer's agent, leaving the REALTOR with a portion. But before the commission arrives, REALTORS must navigate a labyrinth of upfront expenses:

• Broker Splits and Fees

• Office Rent and Utilities

• MLS Fees

• NAR Fees

• Local Association Fees

• E&O Business Insurance

• Extended Auto Insurance

• Self-Employment Tax

• State Licensing Fees

• Advertising Fees

• Showing Service Fees

• Website Fees

• Assistant's Salaries

• Showing Partners

• Transaction Coordinator

• Yard Signs

• Photographers

• Videographers

• Office Supplies

• Business Cards

• Property Flyers

• Electronic Lockboxes

• Continued Real Estate Education

• Legal Fees

Moreover, income taxes are not withheld, requiring REALTORS to set aside a significant portion—around 25-30%. Health insurance, if not provided by a spouse, is an additional financial consideration.

For a listing agent, the responsibilities extend far beyond the final sale. The meticulous list includes:

 1. Prepare Listing Presentation for Sellers 

2. Research Sellers Property Tax Info 

3. Research Comparable Sold Properties for Sellers 

4. Determine Average Days on Market

 5. Gather Info From Sellers About Their Home 

6. Meet With Sellers at Their Home 

7. Get To Know Their Home 

8. Present Listing Presentation 

9. Advise on Repairs and/or Upgrades 10. Provide Home Seller To-Do Checklist 11. Explain Current Market Conditions

 12. Discuss Seller’s Goals 

13. Share Your Value Proposition

 14. Explain Benefits of Your Brokerage 15. Present Your Marketing Options 

16. Explain Video Marketing Strategies 17. Demonstrate 3D Tour Marketing 

18. Explain Buyer & Seller Agency Relationships 

19. Describe the Buyer Pre-Screening Process 

20. Create Internal File for Transaction 21. Get Listing Agreement & Disclosures Signed 

22. Provide Sellers Disclosure Form to Sellers 

23. Verify Interior Room Sizes 

24. Obtain Current Mortgage Loan Info 25. Confirm Lot Size from County Tax Records 

26. Investigate Any Unrecorded Property Easements 

27. Establish Showing Instructions for Buyers 

28. Agree on Showing Times with Sellers 29. Discuss Different Types of Buyer Financing 

30. Explain Appraisal Process and Pitfalls 31. Verify Home Owners Association Fees 

32. Obtain a Copy of HOA Bylaws 

33. Gather Transferable Warranties 

34. Determine Need for Lead-Based Paint Disclosure 

35. Verify Security System Ownership 36. Discuss Video Recording Devices & Showings 

37. Determine Property Inclusions & Exclusions 

38. Agree on Repairs to Made Before Listing 

39. Schedule Staging Consultation 

40. Schedule House Cleaners 

41. Install Electronic Lockbox & Yard Sign 42. Set-Up Photo/Video Shoot 

43. Meet Photographer at Property 

44. Prepare Home For Photographer 

45. Schedule Drone & 3D Tour Shoot 

46. Get Seller’s Approval of All Marketing Materials 

47. Input Property Listing Into The MLS 48. Create Virtual Tour Page 

49. Verify Listing Data on 3rd Party Websites 

50. Have Listing Proofread 

51. Create Property Flyer 

52. Have Extra Keys Made for Lockbox 53. Set-Up Showing Services 

54. Help Owners Coordinate Showings 55. Gather Feedback After Each Showing 

56. Keep track of Showing Activity 

57. Update MLS Listing as Needed 

58. Schedule Weekly Update Calls with Seller 

59. Prepare “Net Sheet” For All Offers 60. Present All Offers to Seller 

61. Obtain Pre-Approval Letter from Buyer’s Agent 

62. Examine & Verify Buyer’s Qualifications 

63. Examine & Verify Buyer’s Lender 

64. Negotiate All Offers 

65. Once Under Contract, Send to Title Company 

66. Check Buyer’s Agent Has Received Copies 

67. Change Property Status in MLS 

68. Deliver Copies of Contact/Addendum to Seller 

69. Keep Track of Copies for Office File 70. Coordinate Inspections with Sellers 71. Explain Buyer’s Inspection Objections to Sellers 

72. Determine Seller’s Inspection Resolution 

73. Get All Repair Agreements in Writing 74. Refer Trustworthy Contractors to Sellers 

75. Meet Appraiser at the Property 

76. Negotiate Any Unsatisfactory Appraisals 

77. Confirm Clear-to-Close 

78. Coordinate Closing Times & Location 79. Verify Title Company Has All Docs 80. Remind Sellers to Transfer Utilities 81. Make Sure All Parties Are Notified of Closing Time 

82. Resolve Any Title Issues Before Closing 

83. Receive and Carefully Review Closing Docs 

84. Review Closing Figures With Seller 85. Confirm Repairs Have Been Made 86. Resolve Any Last Minute Issues 

87. Attend Seller’s Closing 

88. Pick Up Sign & Lock Box 

89. Change Status in MLS to “Sold.” 

90. Close Out Seller’s File with Brokerage

For a buyer's agent, the responsibilities are equally comprehensive, ranging from initial meetings to closing day. The process involves tasks like:

1. Schedule Time To Meet Buyers 

2. Prepare Buyers Guide & Presentation

3. Meet Buyers and Discuss Their Goals

4. Explain Buyer & Seller Agency Relationships 

5. Discuss Different Types of Financing Options 

6. Help Buyers Find a Mortgage Lender

7. Obtain Pre-Approval Letter from Their Lender 

8. Explain What You Do For Buyers As A Realtor 

9. Provide Overview of Current Market Conditions 

10. Explain Your Company’s Value to Buyers 

11. Discuss Earnest Money Deposits 

12. Explain Home Inspection Process 

13. Educate Buyers About Local Neighborhoods 

14. Discuss Foreclosures & Short Sales

15. Gather Needs & Wants Of Their Next Home 

16. Explain School Districts Effect on Home Values 

17. Explain Recording Devices During Showings 

18. Learn All Buyer Goals & Make A Plan

19. Create Internal File for Buyers Records 

20. Send Buyers Homes Within Their Criteria 

21. Start Showing Buyers Home That They Request 

22. Schedule & Organize All Showings

23. Gather Showing Instructions for Each Listing 

24. Send Showing Schedule to Buyers

25. Show Up Early and Prepare First Showing 

26. Look For Possible Repair Issues While Showing 

27. Gather Buyer Feedback After Each Showing 

28. Update Buyers When New Homes Hit the Market 

29. Share Knowledge & Insight About Homes 

30. Guide Buyers Through Their Emotional Journey 

31. Listen & Learn From Buyers At Each Showing 

32. Keep Records of All Showings 

33. Update Listing Agents with Buyer’s Feedback 

34. Discuss Home Owner’s Associations

35. Estimate Expected Utility Usage Costs 

36. Confirm Water Source and Status 

37. Discuss Transferable Warranties 

38. Explain Property Appraisal Process

39. Discuss Multiple Offer Situations 

40. Create Practice Offer To Help Buyers Prepare 

41. Provide Updated Housing Market Data to Buyers 

42. Inform Buyers of Their Showing Activity Weekly 

43. Update Buyers On Any Price Drops

44. Discuss MLS Data With Buyers At Showings 

45. Find the Right Home for Buyers 

46. Determine Property Inclusions & Exclusions 

47. Prepare Sales Contract When Buyers are Ready 

48. Educate Buyer’s On Sales Contract Options 

49. Determine Need for Lead-Based Paint Disclosure 

50. Explain Home Warranty Options 

51. Update Buyer’s Pre-Approval Letter

52. Discuss Loan Objection Deadlines

53. Choose a Closing Date 

54. Verify Listing Data Is Correct 

55. Review Comps With Buyers To Determine Value 

56. Prepare & Submit Buyer’s Offer to Listing Agent 

57. Negotiate Buyers Offer With Listing Agent 

58. Execute A Sales Contract & Disclosures

59. Once Under Contract, Send to Title Company 

60. Coordinate Earnest Money Drop Off

61. Deliver Copies to Mortgage Lender

62. Obtain Copy of Sellers Disclosure for Buyers 

63. Deliver Copies of Contract/Addendum to Buyers 

64. Obtain A Copy of HOA Bylaws 

65. Keep Track of Copies for Office File

66. Coordinate Inspections with Buyers

67. Meet Inspector At The Property 

68. Review Home Inspection with Buyers

69. Negotiate Inspection Objections 

70. Get All Agreed Upon Repair Items in Writing 

71. Verify any Existing Lease Agreements

72. Check In With Lender To Verify Loan Status 

73. Check on the Appraisal Date

74. Negotiate Any Unsatisfactory Appraisals

75. Coordinate Closing Times & Location

76. Make Sure All Documents Are Fully Signed 

77. Verify Title Company Has Everything Needed 

78. Remind Buyers to Schedule Utilities

79. Make Sure All Parties Are Notified of Closing Time 

80. Solve Any Title Problems Before Closing 

81. Receive and Review Closing Documents 

82. Review Closing Figures With Buyers

83. Confirm Repairs Have Been Made By Sellers 

84. Perform Final Walk-Through with Buyers 

85. Resolve Any Last Minute Issues 

86. Get CDA Signed By Brokerage 

87. Attend Closing with Buyers 

88. Provide Home Warranty Paperwork

89. Give Keys and Accessories to Buyers

90. Close Out Buyer’s File Brokerage

WHEW! EXHAUSTING ISN’T IT?"

In conclusion, being a REALTOR is a demanding, multifaceted role that requires resilience, dedication, and a constant commitment to client success. If you're not buying or selling a home but want to support your local agent, consider actions such as sharing their listings, referring friends or family, connecting them with agents in different areas, or leaving a positive comment or review. These small gestures go a long way in acknowledging and supporting their hard work. ❤️✨

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