Why paying a discounted commission is NO bargain...

By
Real Estate Agent with EXIT 1st Class Realty

Why paying a discounted commission is NO bargain...  

Here I am...again.  Sitting across from a lovely couple, explaining (debating) my worth to them as a specialist in my field of expertise...Real Estate Sales.  Nothing makes you squirm in your seat more than discussing money, especially having to justify why you are deserving of every last penny they will eventually pay me when I sell their house.  Most people only have to address their income once with their employer, during the interview process and negotiate the terms involved.  Then, maybe, here and there down the line--but even then, most raises are addressed in that initial hiring phase.  In most cases, you are not asked to work for free, negotiate your salary if the company has a rough spot with a customer, or argue your worth to the company at every bump in the road.  Ah...the life of a Realtor...everytime I go on a listing appointment, I face this inevitable conversation.    

 I am a full service agent, and my fee is 6%.  Across the board, if I sell your house you will pay 6%.  I am worth every penny...here's why:

-  At the very beginning, my business partner and I spend hours studying the market and determining a list price for your home.  I do not plug numbers into a software program and let it spit out a pretty pie chart with your price at the top.  I study every feature of your home and then all the recent solds-pending-active of like properties.

  - I come to you. To your house. For signatures, explanation...whatever you need, I am there.  - I also pick up my phone.( If you pay 4-5%, that issue is a gamble.)

  - I actually put pictures and a virtual tour online.  Not dark,ugly pictures of a wall or ceiling... I spend time writing an ad for your home.  It is more than 4 sentences, and it will talk about everything your home can offer a buyer.

  - I blog your home.  I prospect for buyers.  Amazing, right?  I don't put your home in MLS and sit back and wait for a buyer...I actually try to find one...what a thought! 

 - I pay for all the tools I use to market your property (that is top secret) out of my own pocket.  I do not ask a seller to pay for anything until I sell it.  If I don't sell, or you are unhappy --you do not pay anything.

  -I call you.  You will know about market conditions,ads,marketing,feedback for showings etc. because I contact you at least once every week.  No guessing or wondering...

 -I present any and all offers.  In person, unless you are out of area.  I will come to your home to get signatures at 9pm if you allow me to. 

 - I arrange paperwork and closing info with the title company for you.  I handle every little, tiny, minute detail from everyone(buyer agent,buyer,home inspector,title company,lender...) for you.  I am a master negotiator for your interests. I am at all inspections. I follow up (repeatedly) with all parties involved to be sure everyone is performing. I attend the closing.  I get the sleepless nights, not you.  I figure out ways to resolve the problems(and there always are) not you.  My goal is to make this transition as pleasant as possible and create a customer for life.  Essentially, from the moment I take a listing, I eat,sleep and breath it until it closes.   

 The other aspect that a seller must consider when selling... Of the 6% I collect, 3% will be paid to the buyers agent.  If I automatically discount my fee, in most cases the discount will be to the buyers agent.  We are all human, so let me ask you this...IF you were an agent, and you had an abundance of homes to show...would you show a home with a lesser commission?  The answer to that is no!  That percentage you are "saving" will be costing you time and aggravation on the market...and will eventually cost you more in continuing mortgage payments and unstable pricing in the long run.  If I can sell your home quickly, get you the best price,give you least amount of time on market, least amount of stress with impeccable service...why would you not want to pay me for it?   We all know that there are different calibers of doctors,lawyers...etc.  You hire the best, because you want the best. You wouldn't hire a doctor because he/she is cheaper... Same goes for selling your home, this is the biggest investment most people have.  Why would you base your decision on a percentage of commission?  Realtors are not all created equal...and you get what you pay for.  

 Melbourne area FL Real Estate Sales and Solutions-Sue Farrell and Corrine Negron Exit 1st Class Realty is one of the areas fastest growing real estate firms.  We specialize in helping buyers and sellers invest in real estate in the Melbourne, Viera, Suntree, Baytree,Lake Washington,Eau Gallie,Palm Shores, Summer Brook,Indialantic, Indian Harbour Beach, Satellite Beach,West Melbourne, Rockledge, Palm Bay and the surrounding areas. 321-543-7881

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Rainmaker
967,893
P.J. Virgilio Jr., Realtor 408-568-6578 Selling homes in the Greater San Jose area and South through San Martin, Gilroy
Keller Williams Realty Silicon Valley - Morgan Hill, CA
San Juan Bautista and Hollister as well!

Corrine,

Breathe.... IMHO, next time compare your numbers to the local market numbers if what you say is a truism your numbers should tell it all. If your list to sell numbers are 101.5 than theoretically your worth 7.5% in my eyes? Think of the easiest way to project this to the client after all their concern is themselves, not us. they want to know about their value, "Hip National Bank", what winds up in their pocket if you will. This should be no problem with the passion you have shown in your post..... Best of Luck!

Patrick

Apr 20, 2011 01:14 PM #1
Rainmaker
300,463
Carol Faaland-Kronmaier
Weichert, Realtors; Hillsborough - Hillsborough, NJ
PhD, e-PRO, Manville, Hillsborough, Somerset NJ Homes

Corrine, I wholeheartedly agree with you that if you do your "job" you should not be paid a discounted commission.  Consumers should realize that they get what they pay for. Discounted commission gives discounted services. Carol

Apr 20, 2011 01:48 PM #2
Rainmaker
379,316
Rose King
UTR, Texas Realtors - Friendswood, TX
Friendswood / Pearland Homes

Hi Corrine, Very well said! It's true - "not all Realtors are created equal"! There is a firm in our area that discounts the listing fee. They do not use a showing service, and you can never reach them to make an appointment to show their listings. And if by chance you do get a showing appointment, the agent never knows anything about the house if you have questions. Nice post!

Apr 20, 2011 01:55 PM #3
Rainer
41,126
Constina M. Baylor
REMAX Gold Coast Realtors Oxnard - Oxnard, CA
Broker Associate - Oxnard Homes, Oxnard Beach and Marina

HI Corrine, Selling real estate looks easy but the time, effort and liability we subject ourselves onbehalf of our clients shouldn't be undervalued.

Apr 21, 2011 10:59 PM #4
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Rainer
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Corrine Negron

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