Last week I posted The Difference between a Home's Price and Value illustrating how price and value are not always related. Now let's look at price and value when talking about Realtors®.

Price is easy to define when talking about real estate commissions. It is the amount of the commission plus any transaction fee. In Omaha a typical real estate commission is about 6%. A transaction fee, also called broker admin fee, may run between $195 to $295. So price is pretty clear.

Value on the other hand is not so easily defined. First you have to understand that there are two types of value; perceived value and actual value. Perceived value is something that one believes has a benefit. Actual value is something that has a benefit, regardless of whether someone perceives it or not.

An example of each will make the issue clearer. A Realtor® promotes a seller's home on dozens of real estate websites with sharp photos and a virtual tour. This provides tremendous exposure to buyers and as a result will likely produce more showings and a quicker sale. This is an actual benefit. On the other hand an agent tells a seller that his company has 600 agents in Omaha. The seller believes that this will result in a quicker sale because there are 600 agents trying to sell his home. In reality only one agent, the listing agent, is trying to sell the home. The other 599 agents at the company have no incentive to sell the home. This is a perceived benefit.

Stay tuned for part 2 when we will evaluate price and value together as they relate to Realtors®.

Troy Trumm, Trumm Team - 402-943-9494, Omaha NE

Omaha Homes for Sale

Omaha Real Estate

View all Homes for Sale in Omaha

Email Troy Trumm and the Trumm Team

I need to sell my home in Omaha?        What's my Omaha home worth?

Omaha's Guaranteed Sale Program - Your Home Sold Guaranteed!

Omaha Real Estate Blog Facebook - Troy Trumm, Omaha Real Estate Agent LinkedIn - Troy Trumm, Omaha Real Estate Agent Twitter - Troy Trumm, Omaha Real Estate Agent Omaha Real Estate Blog RSS Feed         

Troy Trumm, Trumm Team - 402-943-9494, Omaha NE
Omaha Homes For Sale
Omaha Real Estate
 

1 Comments on Price and Value of Realtors

APR
17
2009

Looking forward to Part 2.
2:22pm • #1


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Top_omaha_realtors Rainmaker_large

Omaha Real Estate & Omaha Homes for Sale - The Trumm Team

Omaha, NE

More about me…

Keller Williams Greater Omaha

Address: 14505 California St, Omaha, NE, 68154

Cell Phone: (402) 943-9494

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog

Find NE real estate agents and Omaha real estate on ActiveRain.