Understanding the Real Estate Agent's Role in Arizona

Demystifying REALTOR® Commissions and Responsibilities

In recent news, there's been a lot of confusion surrounding REALTORS® and their commissions. It's time to set the record straight and shed light on the tireless efforts behind the scenes. At Croft N Croft Realtors, we believe in transparency and ensuring our clients understand the full scope of our job.

Here's a glimpse into what we bring to the table:

REALTORS® don't operate on a traditional hourly wage or salary; our earnings are solely contingent upon successfully selling a home. This means countless hours can be invested without any guarantee of payment. It's a constant hustle, akin to waking up unemployed every day, attending job interviews with the hopes of securing a sale.

Our commitment extends far beyond regular business hours. We're available 24/7, sacrificing personal time, family gatherings, and weekends to serve our clients diligently. And when a sale is finally closed, half of the commission often goes to the buyer's agent, further emphasizing the dedication required to succeed in this field.

But the financial investment doesn't stop there. Before receiving any payment, REALTORS® must cover numerous upfront expenses, including broker fees, office utilities, licensing fees, and advertising costs. These financial obligations, coupled with the uncertainty of income taxes and health insurance, underscore the financial responsibility we bear.

As listing agents, our responsibilities are multifaceted, extending far beyond simply selling a home. From preparing comprehensive listing presentations to coordinating repairs and staging consultations, every step is meticulously planned to ensure a seamless selling process.

Similarly, as buyers' agents, we undertake a myriad of tasks, from educating clients about financing options to scheduling property showings and negotiating offers. Our goal is to guide buyers through every step of their homebuying journey, offering support, insight, and expertise along the way.

The exhaustive list of tasks may seem overwhelming, but there are simple ways you can show support for your real estate agent, even if you're not buying or selling a home. Sharing their listings, referring friends or family, or leaving positive reviews can go a long way in recognizing their hard work and dedication.

Continuous Realtor® Expenses:

Realtors® have a myriad of upfront expenses that must be paid out BEFORE they get paid from a transaction:

Broker Splits and Fees, Office rent and utilities, MLS/Multiple Listing Service Fees, NAR/National Association of Realtors Fees, Multiple 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 RE Education, Legal Fees, Gas, Health Insurance. NOTE: Income taxes are not taken out so they have to put that aside around 25-30%.

As a listing agent they have lots of tasks far more than just selling a home:

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” v- OR BE FINED by the MLS!!!

90. Close Out Seller’s File With Brokerage

We go beyond this list! Go to...   The Croft N Croft Seller Guide  

As a buyers agent they also have many tasks.

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. Manage expectations and help keep the clients grounded, focused, and on track during the pursuit of their home journey

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 4

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

We go beyond this list! Go to..    The Croft N Croft Buyer Guide  

You don't have to buy or sell a home to support your agents real estate business . . .

Here are just a few simple ways YOU CAN easily show your support!⁣

1. Share their listings

2. Send a friend or family member their way

3. Let them connect you with agents outside their area for a broker to broker referral

4. Leave them a positive comment or review . . . this helps them feel seen and supported!

At Croft N Croft Realtors, we're committed to providing unparalleled service and support to our clients. Your trust and satisfaction are our top priorities, and we'll stop at nothing to ensure a smooth and successful real estate experience for you.

Thank you for your continued support! 🏡✨

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