REALTORS® are business owners — not employees

KNIEPER REAL ESTATE

Pam Knieper, Broker/Owner of Knieper Real Estate, is and has been the #1 Top Producer for more than 15 years in Hood County and running. She is known as the Waterfront Expert and the Authority on Real Estate.

Real estate agents are typically not employed by their brokers; they are independent contractors. Almost all REALTORS® work strictly on a commission basis. There is no base salary or expense account provided by their broker. Over the years I have been truly shocked at the number of individuals who think REALTORS® get regular pay checks. That is simply not correct. Just like any other “business owner,” REALTORS® have overhead, rent, payroll, advertising, and if we aren’t selling houses then our business is not making money, and neither are we.

The recent changes in the real estate market have brought a significant increase in the number of real estate agents nationwide. Our numbers have doubled or even tripled in some areas. The current number of ACTIVE REALTORS® in our Granbury Association of REALTORS® is 436 (as of December 2022). However, there are currently only 375 homes for sale (Classified as ActiveResidential) in Hood County. So even though inventories are up substantially, compared to this time last year, there is still less than 1 active residential listing per active agent in our small county. Add to that the fact that it takes the average REALTOR® six months after obtaining a license to get to a point where they can support themselves, and it’s easy to understand why every 5^th real estate agent gives up sometime in their first year.

The typical REALTOR® is a 56-year-old female who attended college and is a homeowner. Only 37% of REALTORS® are men, but what may surprise you is that 43% of all REALTORS® possess a bachelor’s degree or higher.

As of November of 2022, it was estimated that there are more than 3 million people holding active real estate licenses in the United States. Of those agents,  1.6 million are REALTORS®.   And your next question is What is the difference? If you do not belong to the National Association of Realtors®, as well your state and local associations for REALTORS®, you cannot call yourself a REALTOR®, you are simply a licensee or agent. REALTORS® are held to a much higher standard and are bound by their associations to conduct their business in strict adherence to the REALTOR® CODE OF ETHICS.

What does all this mean to you? Simply put, there are a lot of people out there with a Real Estate License. When choosing an agent to help you buy or sell, do your due diligence. First make sure they are in fact a REALTOR®, then start asking questions. How much experience do you have? What is your advertising budget? If you leave town or get sick who will be taking care of my transaction? How well do you know the neighborhood? Do you have support staff? Do you own your own website?

As always, we welcome your thoughts and questions. Give us a call at 817-219-0456 or visit us online at www.WeSellGranbury.com. If you would like a copy of the REALTOR® Code of Ethics, email us at info@knieperteam.com. We will be happy to send it to you.

pamK@knieperteam.com | 817-219-0456