The subject of commissions, is one that is often discussed in the real estate world. Consumers have their opinions of what a real estate agent should be paid. Real estate agents have their opionions, of how much the service they provide is worth. Sometimes those two opinions are similar. And sometimes, well, let's just say, they aren't. The purpose of this post isn't to open that can of worms yet again. This post asks a different question. Are you a bargain?
Outperforming Your Contract
It's natural for people to discuss money and compensation. Although it can be a touchy subject, it's one that has to be addressed. One of my favorite high profile examples of pay, is the money professional athletes are paid. For years, I would tell people that Michael Jordan and Tiger Woods are two of the most underpaid individuals on the planet. That statement drew strange looks and spurred debate, until I explained myself. Way before Tiger Woods decided to implode his personal and professional; life, he signed a 40 million dollar contract with Nike Golf. The only problem, is, there wasn't really a Nike Golf, as it was a fledgling division of the powerful athletic company. Mediocre products, and little share, of the extremely lucrative gold market, was the state of affairs at Nike Golf prior to Tiger. Over the years, Mr. Woods won many high profile tournaments, draped in Nike gear, and hitting Nike golf balls. As he enjoyed success, the company grew to a yearly revenue of three quarters of a billion dollars. Mr. Woods, simply put, was a bargain, not just for Nike, but any corporation who hired him.
Although we don't talk about it often enough, I think our goal as real estate professionals is to outperform our contracts and our commisions on every transaction. From the moment we meet with a client, we have the oppurtunity to be a bargain. Helping a buyer find the right home, in the right neighborhood- at the right price, can bring years, even decades of happy living. Suggesting that buyer explore all lending options, may save tens of thousands of dollars over time. And helping buyers avoid mistakes is just as important as finding the right home.
Sellers have even more variables, to benefit from the help of a knowledgeable real estate professional. The way a home is priced and marketed is vital to a successful transaction. How that contract is negotiated is also important. But a real estate agents worth, is often determined when things to sideways. That repair list seems like it won't end, or as we have witnessed in the current market, financing and appraisal issues pop up. The fact is, these items do come up, on the buyers and sellers side, and a real estate professional does a great job of making these problems go away. A good real estate agent is a value. A great real estate agent is worth their weight in gold.
I don't think the subject of real estate commissions and compensation will ever go away. Frankly, I don't think it's a debate to engage in. The only question to ask yourself as a real estate professional, is, am I a bargain?