Real questions and Real answers regarding Real Estate Commissions.

Worrying about what you pay, instead of what you get, is a mistake that will cost a seller thousands in the current Real Estate market.

Pick a quality agent from a local brokerage and expect professional service.
List with a discount brokerage and expect a discounted offer.
Put a sign in your yard that says “I’m cheap” or “I’m desperate” and expect cheap buyers writing cheap offers.

Q. Is a Real Estate commission negotiable?

A. Yes. First let’s look at the services being provided and the costs that are associated with them. We should talk about the commission that you are requesting and I will need to decide whether or not I am willing to work for the commission that you want to pay. It’s a business decision for both of us.

Q. Should I increase the commission offered to the buyers agent?

A. No. The commission must be the same as other homes in the area and price range, and anything above that should be applied to a price reduction. Extra commissions are bonuses, but I can’t sell a house because it pays me more.

Q. Will you list my house for a lower commission?

A. Yes. The commission is negotiable. If we set the price well below market value to reduce the costs associated with marketing the house. Most seller’s would benefit from listing closer to market value and paying the extra commission.

Q. What if you list the house and sell it, will you take less?

A. No. If we are lucky enough for this to happen Mr. Seller, you win. If I bring a qualified buyer to your house and we have the luxury of having the agent the knows the house the best show it, you win. If I can tell them why it is worth the list price and show them the comparables that where used to establish the list price, you win.

Q. What is more important, the price or the commission?

A. The Price. Don’t make the mistake of focusing on commission when listing your house. Pricing your home correctly is the single most important factor in determining when or if your home sells.

If you are a seller and your first concern is the commission (big red flag) , you will start out with the wrong agent and end up with less money in your pocket. Experienced agents want to help you get the most they can for your property and just want a fair commission from the close of the deal.

Seller’s that allow their agent to guide them through the sales process will benefit. Successful Real Estate agents in today’s market bring local knowledge and transaction skills that net sellers more and provide smooth timely closings. If you want less service and less knowledge, go with a discount service, and expect to get what you pay for.

Steve Hirschler

Associate, The Tim Wood Group

Coldwell Banker Mountain Gallery

42153 Big Bear Blvd.

P.O. BOX 6820

Big Bear Lake, CA 92315

June 15, 2008 |

Comments

4 Comments so far

crunchy carpets, Moms June 15, 2008 12:34 pm
“Seller’s that allow their agent to guide them through the sales process will benefit. Successful Real Estate agents in today’s market bring local knowledge and transaction skills that net sellers more and provide smooth timely closings. If you want less service and less knowledge, go with a discount service, and expect to get what you pay for.”

Really? Really is that all the answer is? A sales pitch for realtors?

How about a realtor PROVING that they are WORTH the high commission rates.

I realize they don’t get all that cash..that a majority goes to the Realty Companies..but still.

Writing an ok ad and sticking ad up in papers and online should NOT be worth thousands.

I want to see someone WORK at selling my house.
trysh, Crafting June 15, 2008 12:45 pm
I had the experience of both - and the first one - was not good. She over-priced the house, she was inexperienced, and didn’t work very hard at selling it. I was getting married and moving out of state - but that didn’t motivate her. I thought she knew what she was doing.

After months of nothing, we terminated the agreement for cause, and went with an agent recommended from a trusted realtor friend of my new husband. We didn’t know this agent - as we were now living in another state. We made a trip to meet with her - she told us the house was overpriced, and at what price it would sell, and what she would do to get it sold - we agreed with her plan - and within four weeks the house was sold - and it sold because this agent DID know what she was doing and it made all the difference in the world. I was happy to pay the commission, for she made the whole process a smooth and business-like one.

So I totally agree with Steve - there is more work involved than just posting something online - and a good agent will get the job done.
Big Bear Real Estate Agent, Real Estate June 15, 2008 12:57 pm
Crunchy Carpets,
The proof comes with the listing presentation. As I mentioned “First let’s look at the services being provided and the costs that are associated with them. We should talk about the commission that you are requesting and I will need to decide whether or not I am willing to work for the commission that you want to pay. It’s a business decision for both of us.”
I think the agent that brings knowledge of the market and existing inventory, negotiation skills, superior marketing, contract knowledge, hard work, and constant communication is well worth the normal commission. Most sellers that use a discount service get a 1% break. This can be quickly made up in the negotiations.
Crunchy Carpets, Moms June 15, 2008 1:43 pm
She offered us a deal because she is a friend of the inlaws…she also has agreed to be a buying agent for my brother..so she is getting new business out of it..SHE talked the good talk and sold us on her..but yeah..she lied.

Her knowledge of the area and the types of houses is poor… i think we will interviewing for a new realtor now.

I want the price lowered a bit and a bit more SELLING going on….