What Expenses Does a REALTOR Have? 

When considering selling a property, homeowners have to consider whether to work with a real estate agent or sell their property on their own. Some consider listing their home FSBO (For Sale By Owner) in order to try to save some money in the transaction. 


The reality, however, is that many of these homeowners end up being surprised about additional expenses they incur along the way. To make an informed decision about how to list your property, it’s helpful to first understand the primary expenses that REALTORs have. 


Basic Expenses of Real Estate Agents

In addition to the direct costs associated with listings, real estate agents have some basic startup and overhead costs. These costs include licensing and continuing education fees, association fees, operational costs, and advertising and marketing fees. 


While these costs might not be directly related to a particular listing, they’re still something that homeowners should keep in mind. These expenses help agents become more knowledgeable, expand their network, and stay connected in the local market, all of which are essential when it comes to helping buyers and sellers. 


Expenses Associated with Each Listing 

In addition to basic startup, overhead, and operational costs, REALTORS have substantial costs associated with each listing and client. Agents do not get paid until a deal closes. As a result, a primary expense on each listing is their time. 


Commercial Sign on Listing


When dealing with a seller, agents generally meet with clients before a property is ready for the market. They give advice about repairs, upgrades, and what should be done to best stage and prepare the home for the market. During these early meetings, they also provide advice about pricing. Once the house is listed, the agent hosts open houses, shows the property, and negotiates a deal. 


In addition to the time each listing requires, REALTORS have substantial marketing expenses. A comprehensive marketing campaign helps to ensure that homes sell quickly, and agents cover the costs of these campaigns. Effective marketing not only includes listing the property on the MLS and social media, but also things like professional photographs and videos, local ads, hosting events, and creating marketing materials. 



REALTORS bring a wealth of expertise, market knowledge, and marketing skills and strategies to sellers. That expertise, coupled with long hours devoted to getting each home sold, makes them a smart investment for sellers. 


Contact our team with any questions about the process. And, if you're looking to buy or sell a home in the Pigeon Forge, Sevierville, or Gatlinburg area, call TN Smoky Mtn Realty at (865)280-2569 to get started.