Why do real estate agents get paid so much?

Q: Is anything selling in Americus and Sumter County?

A: Yes. Although results are disappointing in some cases, some properties are being sold. Since January 1 this year, REALTOR members of the Americus Board of Realtors have listed 124 residential properties; 57 of them were sold so far. That's a little less than half being sold.

Of 28 land listings, 5 have been sold. Of 8 commercial listings, 6 have been sold. Percentage-wise, commercial sales have outperformed residential and land. As recently as 10 years ago, land sales in Sumter and adjoining counties comprised a hot market, thanks in part to buyers from Florida. When the housing bubble burst and the economy tanked, that market almost dried up.

Q: Why do real estate agents get paid so much for the little time they spend working?

A: Oh, boy, that's a question I love to answer. The public sees real estate agents unlocking doors so their customers can look inside houses, and may think that's about all they do. The truth is, the public only sees a small part of what agents do. Most of our work is done behind the scenes in our offices, cars and homes. We spend a lot of time putting deals together and more time keeping them from falling apart -- a constant hazard.

Agents have to balance the interests of buyers and sellers while coordinating the transaction with mortgage lenders, appraisers, surveyors, home inspectors, repairmen, pest control guys, attorneys and paralegals. That's a lot of time spent in phone calls, writing and answering emails, meeting workmen at the house to let them in, making sure the house is locked up after they leave, etc., etc.

But here's the most important point to remember: Real estate agents get paid for performing, not for their time. A good agent performs the work necessary to insure a smooth closing. When the agent sits there at the closing table, he or she should have little to say and nothing to do. The agent's work has been done in advance of the closing, and that's why we're able to have a closing. It may have taken two hours or 10. The agent performed his or her duties under the contract, and that's what an agent gets paid for.

Further thoughts: Agents spend thousands of dollars obtaining and maintaining their licenses. They spend many, many hours taking classes to stay abreast of the latest legal and technical information they must know to perform their duties. They assist buyers and sellers with one of the most important transactions they will ever engage in, the buying and selling of real estate.

Most of us think nothing of leaving a 10 or 20 percent tip for a waiter, even when the service isn't all that great, but some of us begrudge the real estate agent a "tip" of 6 percent. Bear in mind, the agent will get to keep only a part of that "tip." The agent's broker gets a share of it, and it may be split 50-50 between two companies. The companies have operating costs. After all deductions, the agent gets a small slice of the pie.

Think about this: What if the agent was also the broker, and his only "operating costs" were copy paper, ink cartridges, and a few other supplies. That broker/agent could perform the same services as the other brokers and agents but at lower "operating costs," and could offer savings to his customers. One broker/agent in Americus meets that description.