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Justifying Our Commission!

I was on a news website this morning which had a few Real Estate articles attached to it discussing our current market condition, as well as breifly touching on Realtor commissions.

If you are a user on this particular site, you are able to comment on how you felt about the article or its contents.

A few of the users made very negative comments in regard to the percentage of commisson that a Realtor commands, and even mentioned that we Realtors should be paid a meager salary, instead of an average 5-6% commission!

One user said that we should not be paid that amount "just to list the property on the MLS". Each user seemed extremely annoyed and angry at Realtors in general:(

It seems to me that many of these buyers and sellers are very confused as to what we are being paid for and why we command the commissions we do...

Let me just clear a few things up for those individuals:)

1. Realtors have details of proprety transfer, which most buyers and sellers do not.

2. Realtors have knowledge of current market conditions, which most buyers and sellers do not.

3. Realtors have knowledge on how to market Real Estate, which most buyers and sellers do not.

4. Realtors have knowledge of how to analyze buyers and sellers needs.

5. Realtors are knowledgable of laws that pertain to Real Estate, which most buyers and sellers do not.

All of these things PROTECT the principal and their interests in each transaction!

How many FSBO's do we know of that ran into major issues in their transaction because they didnt have the knowledge or access to this kind of information?!

If I was not in Real Estate, I would use the services of a Realtor thats for sure....and you can take that to the bank! lol

Posted by The Grant Team of Naples - Offices at The Ritz Carlton on 11/05/2007 10:15 AM

Comments (14)

realtor commission, market conditions, naples florida real estate, real estate

14 Comments on Justifying Our Commission!

NOV

2007

You make good points, however I am sure that the reason those negative comments came towards Realtors is that they did not provide the services to the client that they were expecting. That happens more frequently than not in most markets. If an agent has to "justify" his commission then he isn't providing the services for the client.

Some many shysters came in the field over the past 10 years because of market conditions and the commission rate and left people with bad ideas as to the value of a true professional.

I’m convinced that we have to do something to make it a little more difficult for individuals who tarnish the reputation of dedicated professionals to enter the field and get jobs when market conditions deteriorate.

I agree with Gaylen that most of the negiative comments are from dis-satisfied customers.

On the other hand, the marketplace has become so competitive with discount full service and ala carte companies that if a seller does not want to pay 5-6%, they can typically shop around and find someone that charges less.

I agree completely that 5-6% commission isn't warranted for just putting a property in the MLS. It's a good thing that Realtors do so much more than data entry!

I provide top notch service to my clients. I consider myself a professional and therefore my commission is negotiable by law but not really. I am very confident in the marketing that I do and in my negotiating skills so I stand firm when it comes to my commission. All good Realtors should never sell themselves short.

Thanks Gaylen. You are correct! The justification of our commission starts at the beginning of the transaction...when we are to protest our worth to the client...AND FOLLOWUP WITH OUR PROMISES:) I know that there are many agents out there that have not acted on their promise to serve in all of our areas of expertise. Any like we all said, this only makes it that much more competitive between us to again prove our worth in the real estate transaction to our clients.

Thanks Rob, yes there are discount options for the client out there. But, in my experience, discounted price yielded discounted service, no matter what the discounted service offered.

Although, Ive seen Realtors through discounted service do EVERYTHING for the client, from the MLS listing to holding wine parties at the showing. And Ive seen a discounted Realtor provide nothing.

It all depends on a Realtors integrity in the busines, their honesy and ethical stance....and really looking out for the client whole-heartedly that makes a difference.

Hey Amanda, ugh, how I wish that it was more well known that most Realtors do so much more than data entry! lol

Again, through educating our client and followup, this negative connotation can be beat:)

Im with Sandy! All good Realtors should NEVER sell themselves short. Amen.

The market place has become competitive with discount full service and ala carte companies. But with these services you get what you pay for. Just listing a property on the MLS does not sell the property. And there is a lot more that goes into selling a home than just finding a buyer. The majority of home sellers do not fully understand the entire process of selling a home, the costs incurred by their REALTOR® or the amount of time that their REALTOR® will need to commit to the sale, market research, continuing education to be able to provide the best service and networking with other agents and clients to get the home sold. They also don't understand that when they ask us to discount our services it is often necessary for us to reduce the amount of service we provide. Statistics show that homes that are listed for sale with REALTORS® sell for on average 16% more and the sellers have an experienced professional to assist them through the entire process. I think that is proof that the services we offer are valuable and the commissions we charge are well justified.

Thanks Bonny, I couldnt agree with you more! Thanks for your comment. FYI...my wife and I recently moved to Naples from Scottsdale, I have to say I miss it there. Although, Naples tops:) Good luck out there!

Joseph, I have learned a lot from the folks around here that are angry with Real Estate agents. I try to listen and understand what they are upset about, and bring my level of service up and beyond the typical Real Estate broker here. As most of us know putting a home on the MLS and putting a sign out front is just the beginning.

Your worth every penny! Just as I am worth everything I make. Discount smishcount, people don't get it how disadvantaged they are going it alone, FSBA, REDFIN, etc.

NOV

2007

Gerrie, thank you, you are so right! I learn a lot from the folks around here too, you as well. Its those people, like you and I that can make a difference in our industry. Keep up the great work!

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