7 Things Real Estate Agents Wish Their Clients Knew

Ever wondered what goes on inside your real estate agent’s head? 

Agents are more than a database of listing prices and marketing statistics…we’re humans too! And as with any job, this work has its share of ups and downs, joys and frustrations.

Read on to learn a few things real estate agents wish their clients knew coming into the market. These tips will help you better understand where your agent is coming from (including their capabilities and limitations), and set you up for a smoother buying or selling process.

1. We Don’t Get Paid Until You Close 

Real estate agents are paid on commission…which means, in most cases, if you don’t close on your home, we don’t get paid.

That means all the days, nights, and weekends we spend showing you homes on a moment’s notice don’t get compensated. Coordinating the administrative details behind the scenes also doesn’t get paid on an hourly or salaried basis. We don’t get reimbursed for our gas, mileage, or other expenses. (Sure, we can write some of those things off come tax time, but for the time being, it’s all out of pocket).

Also, selling real estate isn’t as lucrative as you’d think. Yes, you can make a good living, but you typically have to sell a lot of homes to get there. 

Individual transactions aren’t that profitable—especially when you consider our expenses (licensing and brokerage fees, gas, marketing, and other business expenses) and the fact that we need to set aside a significant amount of that commission check for taxes since we’re self-employed.

2. We Care

This is one of the biggest things real estate agents wish their clients knew: We aren’t just in it for the commission—we truly care about your home sale or purchase.

In other words…agents have feelings too! 

When your home isn’t selling, or if you can’t find a home as a buyer, I carry the weight of that burden too. I want to see you sell your home for a profit and find the home of your dreams at a great price! It hurts me to see my clients hurt, frustrated, or discouraged. 

And sadly, real estate agents end up being the easiest target when things don’t go the way their clients hoped. As much as I love my job and my clients (truly, I do!), this work can be stressful and, at times, thankless.

So the next time you find yourself frustrated because you haven’t found a home yet or you didn’t get the offers you thought you would, please don’t take it out on your real estate agent. We truly do everything in our power to help, but some things are just out of our control.

3. It’s Best To Keep Your Emotions in Check

Buying a home (especially for the first time) can be an emotional roller coaster. It’s a stressful process, and it’s hard not to let your emotions take over. 

But you’ll have a much better experience if you work to manage your emotions.

When you tour a home, try not to let yourself get too emotionally attached. Look at it for its potential: 

• Does it meet your needs…especially your non-negotiables? 
• Does the price make sense for its condition and location?
• Will it need any major repairs in the near future, and can you afford them?
• What about resale value—when it comes time to sell, will others love it as much as you do?

Over the past several years we have been in an extreme seller’s market…especially since the start of the pandemic. With such a hot market, many buyers have gotten too emotionally invested in purchasing. Then, when they end up losing a home to multiple offers, they’re devastated. It’s in your best interest to stay objective.

4. Agents Don’t Have a Crystal Ball

I wish I could tell you that the home you’re about to purchase is the best home ever…but I can’t. 

I can’t predict when exactly your roof will need to be replaced, what kind of neighbors you’ll have, or whether a freak rainstorm will flood your basement.

I also can’t predict where the market will be in 10 years…so I can’t say how much your home will appreciate or how much you’ll make on it when you sell. (What your home is worth is based on a LOT of factors…most of which real estate agents simply can’t predict.)

No one could have predicted how bad the COVID pandemic would get…much less the havoc it would wreak on the real estate market. But it did…and many sellers were able to benefit from the crazy seller’s market we’ve had! 

5. A Home Sitting on the Market Longer Than Usual = the Price Doesn’t Match the Condition

When a home stays on the market longer than average, that doesn’t necessarily mean there’s something wrong with it. In most cases, it simply means the home isn’t priced right for its condition.

If I represent the buyer, 90% of the time I don’t know why the sellers are moving. I don’t know why they decided to sell right now…whether they’re moving out of town, downsizing or upsizing, or selling because the house is a money pit. (Remember: an inspection will show you if something is wrong.)

And if something is wrong with the home, the price should reflect that. 

6. It Takes 3–5 Years for Buyers To “Break Even”

Once you have the title to your new home in your hands, it’s yours, and—legally speaking—you can sell it at any time.

However, just because it’s possible to sell right away doesn’t mean you should.

In fact, it takes most buyers 3-5 years to break even on their home after a purchase. What I mean by “break even” is that you’ll earn enough from the sale to cover the costs of the transaction (closing costs, agent commission, etc). 

That means if you want to make a profit on your home sale, you have to own it for longer than the 3-5 year mark. If you decide to sell before you break even, you’ll lose money on the sale and end up paying some of the transaction costs out of pocket.

Keep in mind that 3-5 years is an average—some homeowners break even more quickly, and for others it takes longer.

Note to buyers: keep this rule in mind when you shop for a home. You want to buy a home you can see yourself living in for at least 3-5 years (or longer to make a profit).

7. Buy or Sell When It Makes Sense for You…Not Because Everyone Else Is Doing It

At the end of the day, you should buy or sell a home when it’s the right time for you to do so…not because everyone else is, and not even because “the market is right.” 

Even if everyone else is selling because it’s a great market for sellers, that doesn’t mean it’s the right time for you to sell. (After all, if you sell your home you’ll need another one…and typically when it’s a hot seller’s market, it’s a tough buyer’s market.) 

And if you miss this window, there will always be another great time to sell—the market ebbs and flows like that.

Buyers, there will always be more homes on the market—don’t settle for a home that isn’t right for you, and don’t blow your budget just to get into a home. Also, the interest rate will always fluctuate. Even if it’s high, that doesn’t mean it’s not the right time for you to buy…especially if you need a home! 

What matters most is finding a home you can see yourself living in for years to come.

I hope these tips give you some insight into your real estate agent’s perspective and what to expect when starting the home buying or selling process. But if you take one thing away from this article, let it be this:

Your real estate agent is on your side. We want you to sell your home at a profit and land the home of your dreams.

As an agent, I do this work because I care. I love helping my clients through the process of buying or selling. I love getting to be by their side as they realize their dreams.

If you’re embarking on the journey of selling your home or finding your next one, I’d love to help! Give me a call at 612-227-5537 to get started.