A Reduced Commission
may put you in a Tough Position.
“My
mothers co-workers niece’s roommate is a Realtor, she’ll lower her commission
for you”. These days it seems
everyone has a friend of a friend who has a Real Estate license. Finding an agent to work for less may
seem sensible, but choosing the wrong one just to save a point or two can
quickly put your homes sale in a tough position. Everyone wants to save some money, but if thinking of going
the ‘cheaper’ route, take these points into consideration before you sign that
listing agreement.
Less Work = Less Money
If
your lawn service only mowed your back yard you wouldn’t consider it superior
service, would you? When selling,
if you demand top dollar, the marketing of your home requires top tier exposure
in every light. From MLS marketing
to magazine advertising, if it’s not done correctly you can be sure to receive
a reduced offer along with that reduced commission. Agents whom offer to work for less often do so because they
simply do less work. A true
professional agent can and will acquire a high dollar amount over and beyond
any savings a 1% reduction on commission will give you. In turn having their hard work net you more.
It may be slow going with few showings
Realtors
work for a reason, sure they love their jobs, but they work for money just like
the rest of you. When an agent
sees a home with a reduced commission, they may show it, but it will often be
at the end of the list. Some
agents may hold off completely on sharing these listings with their
clients. Ethical? No. But it’s not a secret that it does
happen. Advanced exposure is the
key to obtaining top dollar for any type of sale, reducing your showings out of
the gate is a sure fire way to reduce your marketability value. Offering a full rate standard commission
to buyers agents ensures you won’t be ignored.
Don’t cut down The Giving Tree
A
favorite book of mine growing up was ‘The Giving Tree’. A young boy continues to take from his
favorite tree until it is nothing but a stump; with ‘nothing left to
give’. There may arise a time
during negotiations where buyer and/or seller are close to final terms but
neither will budge on final perceived value. At this time, many agents may offer to contribute a portion
of their commission to make the deal go through. If an agent has already given their share to begin with,
there may be nothing left to give shall the situation arise. Save commission reductions as an ‘if
needed’ request and the agents involved will do their job to obtain true top
dollar for your home.
‘You
get what you pay for’ is the best advice I can give to anyone pursuing a low
commission agent. Be sure to look
at the big picture; if you let saving a few bucks jade you, you just may end up
paying more in the long run - for sub standard service. We all love saving money, but if the
cost of saving exceeds the savings themselves, you’ve done yourself a
disservice.
