Holler to Single Moms on Commission

I'm a realtor. That's one of my jobs. And as a realtor, my job is to cultivate relationships with my clients, do the best job that I can do for them, and get them in the home of their dreams (or sell their home). I take my job VERY seriously.  I put 110% into every single client. I spend time, energy and effort into making sure the process is understandable, seamless and stress-less.

I feel compelled to write this post because I just lost a client and I wanted to share what that impact is to me personally. My intention is not to make anyone feel bad but to merely shed light on what happens when clients take their business elsewhere.

I am a HUGE customer service person. I was a Nordstrom employee for years and know first-hand what it means to provide exceptional customer service. I treat my clients well, all of them. Real estate, remodel or bride, I honor and respect each and every one of them, and I do my best for them. So when I lose clients (which doesn't happen often, but it does happen), I can't help but feel extremely hurt and betrayed (insert sensitive Cancer comment here).

In real estate, we are paid 100% on commission. And depending on which brokerage you work for, you rarely get 100% of that commission. Working for a brokerage costs money. Some agents pay a percentage of their commission, sometimes 60/40, with 40% of every commission check going to their broker. Some agents pay desk fees that could range anywhere from $300+ per month, regardless of whether they sell anything or not. It's an expensive business. The money you spend on signs (which are usually over $100 a pop), printed materials like flyers, keyboxes, photographers, sign installations, staging, etc., each listing can become very expensive. My point here is that regardless of if you sell or not, there are costs to doing business.

When you have a buyer that you are working with, they pay you nothing. Your commission comes from the seller and your buyers basically get you for free (free to them, at least). You spend hours of time educating, showing and thinking about what is best for them. You drive them around, meet them for inspections, make sure paperwork flows smoothly. In other words, you woo them and make them happy. I love it. I love making my buyers happy.

But what can happen when you have unassuming clients is that they can get picked up by other brokers unknowingly. Realtors are birds of prey. They can be very smooth. And the way they market themselves can be down right trickery to the unassuming buyer.

Without going into too much detail about my situation, I'll give you a recap. I was helping some buyers look for a home. After we lost two offers on two different condos in Seattle (which let me tell you is not unusual when you get 7+ offers per listing), they decided to go with another realtor who, "specializes in condos." Now let me be clear. There are differences between condos and homes, but if you're a smart realtor, you know what they are and its nothing but paperwork. But the agent who markets them self as an "expert in condos" appeals to an uneducated buyer. And hence, my buyers are now gone.

In reality, its not me. It was the strength of our offers that didn't win the deal. And I clearly communicated that. But they were nervous and unwilling to put out an offer that would compete effectively with the other offers. So I do what my clients want. If we lose, we lose. But it's not me, personally, that is the problem.

So now that you know how it all works, let me tell you why I am writing this post. My client's budget was $700k. If I sold them a house at that price point, that would be a commission check of around $21k. That was money that I was counting on. To take care of my family, myself and my two children. And because they believe they need a "condo expert," I've lost out on that money. Not only have I lost hours of my personal time that I can't get back, I've lost the opportunity to make a big chunk of money to support my family. Poof, gone. Just like that. And the shittiest thing is, I don't think that aspect even crossed their minds.

So while I can't force clients that I've personally invested in to stay with me through thick and thin, I absolutely do that for them. I work my ass off for them, answering every question they have, teleconferencing with them late into the night, writing offers and schmoozing listing agents. And the only thing I wish is that they would grant me the decency to have a conversation about it. And to understand what opportunity they are giving to someone else that hasn't put in all of my effort but is now reaping the rewards (to the tune of $21k). 

So to all of my single mothers out there, selling Lula Roe and Younique and Rodan + Fields and all the other sell-at-home, commission-based businesses: you guys are awesome. You work hard for your families and I appreciate you.  To my realtor friends busting their asses working for their clients, I appreciate you and what you do on the daily. It's not easy. And for those of you, like me, who feel betrayed once and a while...stick with it. There will be more clients. And to all the readers out there who know someone like this in their life, be loyal to them. Your loyalty literally pays their bills.