You may think that real estate agents have it great.
They can work whenever they want, they get to look at houses all day, and they get massive commissions for helping someone buy or sell a home.
In many real estate transactions, the buyer or seller actually does much of the work facilitating the transaction, but real estate agents have essentially positioned themselves as a default middle-man who walks away with all the cash.
On a 500k transaction, each agent walks away with $12,500 in gross commission (2.5% of the purchase price).
What you don't know is that most agents are forced to work pay-check to pay-check.
Most agents only see only a portion of the commission they earn. They have to pay fees to their brokerage, including a cut of their commission, on each deal they close.
Because agents are self-employed 1099 employees, they also have to pay their taxes out of their earnings directly to the IRS (unlike W2 employees who see the money come directly out of their paycheck). So another chunk of their comission goes to paying their taxes. The Unicorn knows agents who CAN'T pay their taxes on time and are now in debt to the IRS.
Another chunk of their commission goes towards paying their expenses to operate their business. Agents have to sink money into websites, desk fees, software programs, marketing materials, for-sale signs, business cards, and of course...advertising.
Many agents spends thousands per month to operate their business. Unicorn has seen agents spend upwards of $5000 per month just to advertise on Zillow. Do you have any bills that are $5000 per month???
All of a sudden that $12,500 has but cut in 2/3rds to $4,125. Now, the agent has to pay their own bills like their mortgage (many agents own multiple properties), their car (I've never seen an agent drive less than a BMW), college tuition, daycare, and vacation (agents take a lot of vacation).
This system forces agents to constantly push to complete more transactions just to stay afloat. 85% of agents only close a few deals per year, so you can see how stressful this gets. Lots of bills + little commision = financial trouble.
Many agents marry spouses who make a good salary just to mitigate the loss they risk sustaining on their own.
If you ask an agent to cut their commission, you're asking them to essentially lose money on your behalf.
Agents are not that nice, and they don't have it that good.
Oath Real Estate is different than every other real estate company.
We let YOU negotiate your commission refund (up to 100%)!