Are Real Estate Agents Worth It? The Truth About Commission

“Your Agents value is priceless.” - Jen Corso

Introduction:

Having the dreaded conversation about how much a real estate agent is worth to a client - stresses me out. From the outside, it's sounds like agents are so glamourous with their fancy cars, fancy suits, and their hair cut from a professional hair salon. Unlike me, I wait for a Great Clips coupon in the mail. I still drive my mom-mobile SUV from 2011. I'm lucky if I buy a new outfit once a year with my Kohl's cash.

Do people really think most agents make a whopping million dollars a year? Of course, when you sell high end luxury homes that are millions of dollars. But the average agent barely makes a minimum wage. If we broke it down per hour, you'd laugh and we would cry. But are we talking about how much agents make or are we talking about what agents are worth? Personally, and I'm sure most real estate agents would tell you, that we are worth more than we make. It's not exactly fair.

Every real estate agent has to have a conversation about commission about who's going to pay it. The commission and who pays it is negotiable. On the buyer's side, the goal is to have the seller pay. But what people don't really understand is that buyers are actually paying it because it's from the seller's profit. The seller should anticipate paying the commissions and add that to their listing price. Sellers need to understand they will have to pay their agent (listing agent) and most likely the buyer's agent, if it's negotiated in the contract. This depends on the buyers and sellers' separate agreements with their agents. Agents don't work for free. I think everyone thinks they should. I'll complain about that later.

Before I became a real estate agent, I didn't think much of who was paying the agents commission nor how much. I just knew that it was part of buying or selling process. I knew there were multiple people in the transaction making your (my) dreams come true. I didn't dwell on the fact that it looked like agents were making more money than the appraiser. I truly didn't care. I understood that they took on lot of the work and was a major character in the buying or selling journey.

But when I got into real estate, the commission conversation would get so heated. People have dragged real estate agents through the dirt. They say agents make so much money and they're not worth it. Now, that’s frustrating to hear. The people complaining obviously are not real estate agents nor probably never bought or sold a home. Ouch, that may hurt some of you. So, obviously I'm going to be biased and say agents are worth millions in the buying or selling transaction. But is the value in the commission or in the agent?

Are there agents who don’t deliver value? Absolutely. Like any profession, there are varying levels of experience and commitment. But a skilled, dedicated agent can protect your finances, your time, and your peace of mind.

Let's break this commission thing down and maybe you'll jump on the real estate agent bandwagon.

With that said, here are 10 reasons (1 bonus) why real estate agents value is worth more! 👊

1. Leg Work

Real estate agents really keep the glue and the transaction in tack. I find myself doing other people's job in the transaction by following up. Listing agents need to have professional looking pictures of the home, measure rooms, and market. They have to research and keep everything legally worded throughout the MLS and social media. They also pay for all of the marketing upfront. If the sale falls through, the agent is out of the money. This is just a few things that Listing Agents do. I could list 500 more. But that's a different blog for a different day.

Buyers's agents keep showing and showing homes until a buyer finally picks one out. Agents need to fill out the contract, get everyone in line for a smooth transaction. They align home inspections and need to be an expert at negotiating. Buyer's agents, in my opinion are one of the most important character. They are bringing in qualified buyers to start the whole process. Without agents bringing in buyers, there's no sale. Of course, I could list 500 more things that buyer agents do. But agents really do most of the leg work when helping a buyer buy a home.

2. Multiple Hats

Wearing multiple hats being a real estate agent, sometimes makes you feel like a clown. Obviously, were not an attorney, home inspector, loan officer, or an appraiser, and sometimes a psychologist but sometimes it feels that we have to jump in and get things done. Agents usually have to follow up constantly with emails, text, calls, and calling in a pigeon for a backup. The parties involved have other clients, other duties, and other lives. Obviously, in the real estate fantasy world, we'd like everyone to bow down and just get their job done with our client. But that's not going to happen. Agents know that it can be a complex transaction and something can go wrong at any time like a buyer buying a car when the lender told them not to.

3. Work Hours

There have been so many times that I'm frantically trying to get an offer ready to send to the listing agent at 9pm on a Friday night. Nothing like relaxing with a glass of wine about ready to go to bed and your buyer that you showed homes the previous Sunday decides they want to put in an offer. There is no 9 to 5 and you don't get your weekends off. I've had conversations with buyers at 6:30am and with agents at 10:30pm.

I've had buyers ask me at 8pm on a Saturday night to see homes at 9am the next day. I always tell my buyers that I have to request from the Listing Agent a time and day in advance. Then the Listing Agent has to confirm with the seller. Plus, I have to map out and time every home so we can have a smooth journey of seeing homes. Can I do it? Yes. I'm like a real estate magician. But it's a pain in the a$$. It also doesn't give the seller much of a time to confirm. It also is a stressful situation for both agent because sometimes the Listing Agent doesn't know that you requested a showing, or the seller doesn't respond because there isn't enough time. If the seller doesn't confirm then our timing is off when I show homes. So, the work hours? There's none. It's like an open 24/7.

4. No Vacations

Okay, this one may make you cry. I did not go into real estate thinking that I would miss out on vacations, my kids' games, or missing out on dinner with friends. This industry works around your client's schedule - not yours. Most people in the transaction get to work their 9-to-5 jobs. Of course, home inspectors work around clients' schedules too but not like agents. Agents get to work their own hours but it's the clients creating the schedule.

Here's the tearjerker story. I was planning on going on vacation to WI with my family and go boating. This guy and his family saw this home that they wanted to possibly move to. It was urgent. He said it looked like his dream home. He lived an hour away in somewhat of a rural area. I canceled going with my family on vacation to meet with him. I Measured. I took pictures. I had him sign a listing agreement. I did everything that a listing agent and a buyer's agent has to do. I scheduled the home to see. We saw the home he wanted to buy. I researched, ran comparables, filled out the contract and disclosures. I sent an offer to the Listing Agent. Waited. The seller did not take his offer. He did not get the home. I eventually took his home off of the private listing side because he wanted to update and sell the next year.

We kept in touch and he kept asking me about other homes he wanted to see. He took another pause on looking at homes because he wanted to continue to update his home, wait for his kid to graduate, and be ready to sell in 2025. I was about to text him and see if he was ready to list since I had just had a conversation about another home with lots of land. My husband tells me that he just "closed" with him a week ago. I was so confused. My husband owns a mortgage company and was doing his loan. He had sold and bought a new home with a new real estate agent after I had been working with him for over 2 years.

I wanted to cry. I gave up my vacation to help him. I gave up my time. I felt like I had been cheated on. I felt like I was thrown to the side. I was angry inside. I couldn't believe after all I had done for him he would do this to me. I felt abandoned. I was hurt, frustrated, and honestly questioning whether this industry was worth it.

After all the hours I had put in. Driving. Listing. Scheduling. Negotiating. Talking with Listing Agents. Being his Buyer's Agent and Listing Agent. In the end, I didn't make a penny. I didn't get a vacation with my family. Time was wasted and I wanted to quit.

5. Real Estate is Not For the Weak

You can't have emotion in this industry. Everyone is on a time frame. Buyer's Agents can treat you as a Listing Agent like dirt if you don't take their buyer's offer. I've had an older Buyers Agent scream and threatened me because she believed I didn't show my seller her offer. I did. The Buyers Agent wanted her to sign a document that said I did show the offer. My seller was a much older lady and said she wasn't going to sign anything because the Listing Agent was calling me and her a liar.

I kept my emotions out of it and kept my opinion of the Buyer's Agent out of it. I did not raise my voice and stayed calm. I spoke with dignity and didn't lose my mind because she acted like her life was depending on the commission. Ironically, the current buyer backed out, and I had to pleasantly call the previous yelling Buyers Agent. I told her that we would accept their offer. Of course, the Buyer's Agent had to apologize to me. Embarrassing for her and hopefully a lesson learned.

Listing Agents can ignore your phone calls, texts, and emails when you put in your buyer's offer. It can be very draining and emotional at times. I've had dozens of conversations with agents on how they have almost quit multiple times because either their client walked away or the agent act unprofessionally. When you are dealing with people buying, selling their home, and especially with money, it can become quite emotional. You need to be able to just brush everything off and not take it personal. Have no emotion.

6. Wasting time

When you work as a Real Estate Agent, you are self-employed. You don't have set hours or get paid a salary. You work your butt off until you close on a home. Then you get paid and only get paid if you close. The value of Real Estate Agents is undeniable. They put so much time and effort into their clients and their journey. Sometimes you continuously show homes to renters for two years and they decide that they're not going to buy anymore. A complete waste of time to get paid nothing. What is the value in time? Apparently, nothing to buyers and sellers.

7. Discount Agent

I cringe at the Real Estate Agents that discount their commission. It's like they have no value. They are desperate. They also are not good at negotiating. They will cave in at any important decision. One of my dear friends didn't even have a conversation with me before he listed his home with another agent because he assumed I wouldn't give him a discount. I felt betrayed. If I was going to discount, I would have wanted him to give me the chance to have that conversation and I probably would have stuck up for myself and explain my value I have. Not just give a discount because you were in my wedding.

I've only discounted once and it was because a close friend that lived out of state and both of his parents had just passed away within a year of each other. The home was also only a few minutes from my home. I hesitated on lowering my commission, but it was an easy listing and an easy client so I knew it would be worth it. I wouldn't want to hire an agent that was willing to discount, even though it sounds like you're getting a deal. Do you think the agent is still going to do the same hard work as if they were getting their full commission they had previously asked for? Do you think they're going to fight for you? Do you think they're going to negotiate for you? Why would anyone want to work hard for less pay?

8. Don't Get Paid

Everyone always tells me that they want to be a Real Estate Agent. Probably because I must make it look so easy. I'm thinking in my head that they don't have the emotional strength nor funds to live off of. Sometimes you can go a month or two without selling a home. What are you going to live off of? Hopefully, you have some savings or a second job.

I think many people watch too much HGTV and think Real Estate Agents are rolling in the dough. Agents are self-employed. There's no salary or tips. Not even a minimum wage. We work hours and hours until we close on a house. Many people, I assume, think we get the full amount of commission. Not true. We have to split it with the other agent. The percentage is negotiable. Then after we get the commission, we have to split it with the brokerage that our license is with. Then take out all the expenses that you acquired such as gas, for sale signs, and photography. Then pay self-employed tax.

9. Discount the Others

As I discussed earlier, I think discounting your commission really takes the value out of your job. What if I went into your job and asked for a discount. Let's say you sell tires and I'm like "Give me a discount because I drive to your house all the time for get together." "Or hook me up because we know each other." I'm sure you'd look at me like a desperate and insincere person. Real Estate Agents have so much value and keep the transaction going smoothly.

If you are going to ask the Real Estate Agent to discount their pay. Then you better get your fingers ready to dial everyone else in the transaction to discount. Go ahead and call the home inspector, surveyor, loan officer. lender, title company, attorney, appraiser, final utility bills, and city requirements. I betcha you won't, will you? It's so easy to jump at one of the main characters in the transaction that you think makes the most money. Did you know attorneys can get their fee from you and the title company? Did you know that loan officers can make money upfront and on the backend?

10. Fight to the End

Real Estate Agents didn't go into real estate for the fun of it. They went into because they love helping clients buy their dream home or guiding sellers. Agents have seen it all. They understand the process and any hiccups that can happen. They are on your side and protecting you from disaster. Agents bring so much value to the process. Not only are they agents, but become mentors and friends. They are your advocate and they will fight for you until the end. So, you still think that agents are worth the commission?

BONUS:

11. Mortgage Payoff

Since many people want to discount and lower a Real Estate Agents value, what about your mortgage payoff? We should all complain about this one. Go ahead and look at your mortgage statement. You get a 30-year mortgage and only put down 5%. Now go ahead and complain about a one-time commission fee that you pay an Agent. Go ahead. It looks like pennies compared to what your lender is making.

See how much your lender is making? It should make you sick. Not only do they make like triple the amount on the interest, but they make an additional amount with PMI (Private Mortgage Insurance) because you didn't put down 20%. So, are you going to call your lender and ask them to discount you because you're "special"? For crying out loud. While we're at it, let's complain about how much the seller makes in profit from selling. Let's nag on them too while we're at it. Everyone needs to understand this is part of buying and selling a home. It's not always sunshine and butterflies.

Conclusion:

Now, hopefully, you understand where the value is in a Real Estate Agent. Most of the time agents work with no outcome of pay. In my opinion, agents are underpaid. Could you imagine if they were paid an hourly? Buyers and sellers would be broke! There would be overtime, after hours, weekends, and Holiday bonuses. If you broke down the list of what Agents do, you would have a heart attack. That's probably why you may know an agent that has a hard personality or drinks. It's a joke between agents. It's a tough job and everyone blames the agent.

We wear multiple hats and put out fires. Sometimes in the end, we end up with nothing. It's an emotional roll coaster. And I'm sure you're thinking "why do it then?". I think for me and I probably can speak for others; it's a joy that you can't describe to be able to help out first time buyers buy their dream home. It's exciting when you get the offer that your sellers were asking for. It's a journey that you get to go on. You get to create new friends. It's an adventure like no other.

I'm hoping that everyone now doesn't think Real Estate Agents should work for free or lower their commission. Agents have so much value. Agents don't just open doors to show homes or throw out a for sale sign out front. There are so many behind the scenes activities that go along with the job. It's an ever-changing industry and we need good humans to keep the process thriving. Can you imagine that everywhere you go, you ask for a discount? Sounds silly. Wouldn't it be rude if someone came up to you and asked for a discount at your job? Sounds ridiculous.

So, next time you talk to a Real Estate Agent, don't be so hard on them. They probably need a hug. Values don't always come in currency like a commission. Sometimes value comes from just good people trying to help people find a solution when they are buying or selling a home.

There are some amazing agents out there and some amazing buyers and sellers.

How a Great Agent Protects You

• Prevents costly contract mistakes

• Negotiates repairs and price reductions

• Identifies red flags in inspections

• Protects earnest money

• Navigates appraisal issues

If you’re planning to buy or sell in the western Chicago suburbs — including Kane, DuPage, Kendall, Will, DeKalb and parts of Cook County — understanding your readiness is the first step toward a confident and successful move.
📩 Contact me at www.jencorso.com

The Author is Jennifer Corso - Realtor. This was created all by her own brain cells. This was not created in Chat GPT or any AI. This was created for informational purposes only. This is only opinions and stories obtained by Jennifer's own experiences.