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Commissions and Perceived Value

By
Real Estate Agent with Douglas Elliman Real Estate 516-457-7103

My partner in real estate many years ago used to say, "Don't buy something based upon it's price.  A year from now you'll forget what you paid for it, but you will remember whether or not you like it."  Although she retired from the business years ago, I carry her words with me whenever I'm out in the marketplace. 

Have you every asked yourself whether you would be looking for a discounted commission if you were selling your own home and you were no longer in the business?  I've thought about it many times and must admit I didn't have a definitive answer . . . at least until last year.  I was having some work done in my house and the first thing I did was call in a closet specialist (a whole other discussion) to have custom closets installed.  I was tired of facing the drooping rack every time I opened the door, and was fully expecting to one day have to choose my outfit from the pile on the floor. 

The company I picked to do the work was not cheap, but their options were many.  The designer kept trying to talk me into white mica, the least expensive possibility.  Not at all what I was looking for, I ultimately paid a lot more for something I wanted and still love.  I finally knew, during this whole process as I chose other things based upon my perception of value, that I would indeed not choose an agent by their discounted price.  This little bit of knowledge has altered my listing presentation when the topic comes up.  It's so much easier for me when I can speak from experience.

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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
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Geri, So many times we talk commission even before we are asked. We must first believe that we are the very best and the sellers are the lucky ones to get our expert professional service,council and advice.

Baltimore,Md.

 

Jul 20, 2006 12:29 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
I try to have people focus on value, not on price.  It's what you get on the bottom line that matters.  If I put more in your pocket at closing because of a higher sale to list ratio, and because of better marketing, and negotiating, than my higher commission doesn't cost you, it makes you money. And if what you buy doesn't get the job done, it's useless at any price.
Jul 21, 2006 12:02 AM