One of our Realtors was told by a buyer yesterday that she should give him a portion of her commission b/c she didn’t do that much work. Our Realtor was appalled, and so were we. But, we were also sympathetic b/c we often hear similar comments.
There is far more than meets the eye for both Realtors and lenders when it comes to staying in business.
Training and Licensing: Both Realtors and lenders spend far more time on training on licensing than buyers and borrowers will ever realize.
Overhead and Liability: B/c of vastly increased regulatory burdens and liabilities, it is now extraordinarily expensive to maintain an office. This overhead includes the specific expenses of the many assistants, working on files, who must be paid whether transactions close or not.
Labor: This is the major factor. Realtors can spend hours on end searching MLS, coaching buyers, showing houses and writing offers. Likewise, pre-approving a borrower and finally getting his loan closed can take over six months and well over 100 hours of labor. It is extremely time-consuming to educate borrowers, garner necessary documents, input all the data, spot all the issues, prepare a loan file, prepare all the disclosures, submit a loan file, chase conditions, argue with underwriters and close out a loan file.
We love our jobs and chosen industries, but it can get frustrating when people outside our industries do not understand how much we have to do to help them buy their homes.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646