When Agents Cut Their Commissions, it Can Cost You Plenty!

In today’s competitive real estate market, some agents are offering to cut their commissions in an attempt to attract more business. The truth is, they want to be listing agents.  Here are some questions to ask before listing your home with an agent who’s willing to take a “pay cut” to work with you.

What is the agent’s primary motivation for cutting their commission? In all likelihood, it’s because they are in a position where they simply need the business that badly.  Do you really want to trust the sale of your property to someone who is desperate for your business?  There is a difference between wanting your business and needing your business.

If you property doesn’t sell, what have you accomplished? There is a difference between listing a property and selling a property.  What the 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 who’s going to be excited about bringing you an offer.

Which services are they going to cut? If you cut your commission, then you have to cut service.  Many factors come into play in finding the right buyer who’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.

Would you really be excited about a 15% pay cut? A 1% reduction in commission equals more than 15% of the total commission.  How can the agent really be excited about working for you? Is the agent being honest with you when he or she tells you that they’re excited about getting your property sold?

Are they going to cooperate with other brokers? What are they going to pay the other brokers? Why are those brokers going to be excited about taking a 15% pay cut? To get top price for your property, you need to have all brokers in the marketplace excited about selling it.

Is the agent a skilled negotiator? If the 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 a lower commission, or is it getting top dollar for your home? Call me to understand more about commissions and selling your home, a Comparative Home Analysis or my Merchandising Review.

Happy Valentines Day!

 

February is the perfect time for celebrating all the things we love in life-right? From that special someone and family and friends to all those little things along the way that make us smile or brightens our days.

For me, it is also a great time to truly appreciate the job that I do.  As a real estate professional, I get to help families like yours as resource, and advocate, and many times, a friend.  They say that true success comes when you love what you do, and I thank you this month, and every month for the privilege of being the REALTOR you turn to.

I wish you and yours a very Happy Valentine’s Day and a wonderful February! May it bring you great joy, memories and success in your business as well.  Take good care and call me anytime! I’m here to help!