Other Agents May
Reduce Their Commission.
And They Should!
What you don't know about real estate commissions can cost you plenty.
Six reasons why Real Estate Agents may reduce their commission, and how it could cost you plenty.
1. They need the business.In today's competitive real estate market some agents are offering to cut their commissions because they don't have systems in place to find buyers. They want to be listing agents. There is a difference in wanting your business and needing your business. Do you really want to trust the sale of your property to someone who is desperate for your business?
2. They don't have a marketing system that works. If your property doesn't sell, what have you accomplished? There is a difference between listing a property and selling a property. What the other agent didn't tell you is that they will make less money selling your property than if they sell another property on the market. You want an agent that's going to be excited about bringing you an offer.
3. If you cut your commission, then you have to cut service. Which services are they going to cut? Many factors come into play in finding the right buyer that's willing to pay your price. To get top price for a property you need as many services going for you as you can possibly get.
4. A 1% reduction in commission equals over 15% of the total commission. Would you really be excited about a 15% pay cut? How can the other agent really be excited about working for you? Is that other agent being honest with you when they tell you that they're excited about getting your property sold?
5. Are they going to cooperate with other brokers? What are they going to pay those other brokers? Why are those other brokers going to be excited about taking a 15% pay cut? To get top price for your property you need to have all the brokers in the marketplace excited about selling your property.
6. To get top price for your property you need a skilled negotiator working for you. If that other broker is willing to let you negotiate them out of 15% or more of their income from the sale of your property, will they also let the buyer negotiate 15% or more from the purchase price of your property? What is that other broker's sale price to list price ratio? You might be costing yourself tens of thousands of dollars by trying to save a couple thousand dollars in commissions.
What's the most important thing to you in the sale of your home? Is it paying that other broker a lower commission? Or, is it putting the most amount of money in your pocket as you possibly can?
A Word About Real Estate Commissions...
Commissions are negotiable. Anti-Trust laws prevent real estate brokers from fixing commissions. A real estate company is free to set a minimum commission that they are willing to accept. Compare apples to apples when selecting a real estate company and beware of a company that's offering a lower commission. Make sure a lower commission isn't the only thing they have to sell. Remember that finding a buyer that's willing to pay your price should be one of the most important factors in the sale of your property. It's important to select a company that has the ability to attract the entire spectrum of buyers in the market place. Choose your real estate person as carefully as you would choose your doctor or attorney, and remember to base your decision on all factors involved.
An Equal Housing Opportunity Broker.
If Your House is Currently Listed This is Not Intended As a Solicitation.