In NC there is no set commissions....as that is against the rules. I am not going to talk about commissions numbers just about the ideas behind them.
Most agents in an area shoot for a commission that is competitive to the other listing agents in the area. Some agents offered lowered commissions. No, I am not talking about the a la carte type of companies, I am talking about full service real estate companies here.
A lowered commission is in my opinion an "upfront apology" by the agent that is offering it. It's kind of a way of them saying that "well, I am only this good, so I only charge this much...". I know, I know...competition is everywhere and I welcome it...I am presenting this from the seller's point of view.
As we all are human we all know that no matter how we were taught, we all look at the commission rate offered by the listing agent when we are serving as the buyer's agent. Of course I always try to look out for my clients best interest but...there it is...right there screaming at me...the commission rate offered. If anyone says that they do not look at the rate...I do not believe them.
Going back to being human...let me explain what I mean. If you were in the everyday world of workers and you were offered a job making $10,000 a year or one making $50,000 a year....which one do you think you would take? The $50,000 of course...also known as the human factor.
So...that being said...yes, America, agents do look at what they are going to make for doing a job...there, I said it...it's out there for all the world now...LOL.
Trying to obtain your listings at what most others are in your area just makes sense as to make your listing competitive. You have to offer close to what the others are or the "employees" are going to go to the other "job".
BUT...there is a flip side to offering lower commissions. I have my rate that I will work for and that is what I stick too...but some agents offer lower rates to try and make sellers think that they are "getting a deal" when in fact are they really? Offering a lower commission once again goes back to the "which job" philosophy. Most agents knowingly or unknowingly will bypass the lower commission offers or save them until the run out of the "higher paying jobs".
This has two effects.
One...the seller in my opinion is being wronged as they are not getting the maximum exposure or should I say the right type of exposure to get their home sold when they need it to be and for the price they are looking to obtain. Due to the house being passed over to the "higher paying" listings...it doesn't recieve the showings it should.
Two...maybe, just maybe the listing agent that offers the lower commission has this as the intent all along...
Ok....I will let you chew on that a second, then I will explain it................................
OK, ready? Maybe the agent that is listing the homes at a consideribly lower rate than the others is doing it on purpose and is well aware of what they are doing. Maybe, just maybe, they are hoping that the homes will not be shown by others allowing them more opportunity to sell the home themselves thereby securing both sides of the transaction. Hmmmmmmm...you say......never thought of it that way.
Keep that thought in mind the next time you run into a home seller who hits you with the "I got a flyer on my mailbox that states that so-and-so will list it at this rate which is lower than yours" and wants to strike up that conversation.
Speaking of putting things on mailboxes.....that is a FEDERAL NO NO.....more on that another time....
Hope I gave you a different prospective on this situation...it took me awhile to figure out HOW they could offer this and make it work to MY advantage!
Good luck and good selling!
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