Do We Choose The Realtor Who Gives Us The Highest Price Or The One That Has The Lowest Commission On The North Shore Of Long Island?
Think about this...
Think about this...
Best service for what a seller deams necessary to sell their home. Its like being fired because the agent didn't do enough advertising to sell an over priced listing. I have a overpriced listing at them moment and that is what it is coming down to as the seller thinks since its their house it will fetch more than market value.
Highest price or lowest commission -- neither really have anything to do with the home actually getting sold -- an agent that offers comps in line with the sales in the area -- and who is paid well to perform the needed services seems the best plan -- our 2 cents.
There is some real balance here. A good Realtor can help you maximize the speed of the sale and the price. But none of us can turn lead into gold. Pricing needs to always be realistic.
Just as there are all types of real estate agents out there, there are also more than one business model. Just because someone may choose to charge a bit less commission does not make them any less of a qualified and capable professional.
i would say why list with an agent that is so into bashing their peers? That behavior is just one reason some buyers and sellers have a distaste for our profession. Do your job, do it well and sell yourself and your services on your own merit - not by knocking your competitors.
It always irritates me when I see people pressure their agent to lower the commission, do they want to be the bottom priority of every agent on the mls?
Even more dissappointing is when an agent offers to reduce their commission for me, I want to be their top priority listing and the top priority listing on the MLS, and any agent that gives up his/her position so quickly, will likely give concessions to the buyer long before they are asked for as well.
I want to hire the agent who asks for a percentage point higher than everyone else and gives me a very good reason why they are worth this extra price.
Dear Sheila and Larry-
Your words of wisdom have stimulated great comments with wisdom from others. Congratulations on your well-deserved feature.
Have a happy day _
Lynn
I had to laugh. I was sent a referral in which the sellers called & interviewed me on the phone as to what I would list the house for (even though I've never been there) & then tried to negotiate the commission rate also. This seller 'knew' everything so I think that I am going to wish him luck with the realtor that he's chosen based on your post.
Larry & Sheila --
I agree with you also...
I am a listing broker here in San Diego ... We have all sorts of agents here (as I am sure you do as well) who reduce their commission one way or another... Like what you touched on, those who reduce their commission and allowing the seller to believe they are getting some kind of a deal. I try and try again to get these sellers to understand I can sell their house for a fair value and put more money in their pocket, more so than the discount broker does. I have even had similar houses to show them that I sold the like-kind house for almost 4% more than the discount broker who is willing to list for a 4% or 5% commission. If we both sell the house at the same price (which never happens, mine usually sold for more ... [not bragging]) the seller still has a larger bottom line on their HUD 1 with me!
Then we have those who say if they can't sell it by a certain time or they'll buy it ... I have never seen these agents buy anything. What I do see is they have a lot of "expired listings!” The funny thing is, these sellers keep listing with these type of agents and I don't know anymore how to get them to understand the difference. One big problem is I don't know they are listing with these agents until the seller calls me back or I see it on the MLS!
Then we have this one who advertises he sells 50:1 more properties than other agents... we don't even get a call and the seller has listed with this agent, who, is really an office, he never goes on the listing appointment, and I am not one of those 50:1 agents he talks about ... I am more in the 1% of agents in our community (not city ... San Diego is BIG!) I don't know how to reach these sellers because I don't have a TV advertising budget! These agents too, hardly ever get the majority of the listings they have sold and they also discount their commission ... volume I guess is the name of the game for these types...
Anyway enough of my rant ... great Blog.... this gets me so fired up!!!!
-- Rod --
PowersRealEstateTeam@gmail.com
www.SanDiegoFamilyHomes.com
Hi Larry & Sheila, excellent post, excellently written! No matter how ofter you tell sellers this they turn around and do it anyway!
Your post on target for both the price and commission discussions. When I have a client that insists on a higer price and says "let's try it for a while, I will prepare the documents for 2 or 3 price drops at 3 - 4 week intervals and get them signed with the listing. If the seller isn't willing to do that I decline the listing so I don't have to fire them later.
Larry and Sheila, there should be a second suggest button, because you two deserve two gold stars for this blog! Well said
Dear Larry & Sheila,
You can get a lot farther with a professional, who has a good relationship with the truth.
Hi Folks,
I agree on the listing price... I try to be accurate and not everyone likes what they hear. Some people will feel we are trying to list low just to get an easy commission; this is partly correct... We do want it to actually sell, rather than just sit on the market forever, in which case no one is happy...
I do have to disagree on commissions, though. Have a lower commission than you does not mean they are cutting their commission because they are desperate; that comes off as kind of insulting in my opinin. Maybe they just charge less in a free market, and run a successful business. In Canada, there is no set commission, and it is actually illegal to suggest that "this" is the standard rate in the market... People can charge whatever they feel is right, which may not be what you charge.
With lower priced properties, I remain firm on my commission, but on a higher priced property, I am always willing to negotiate. In my region, house prices have gone through the roof steadily over the last 12 years, but wages have not. There is merit in a seller's concern over the commission on these properties.
On a double ender, or when the person is selling then buying, I offer them a break, I do not wait for them to ask... Just being reasonable... Even giving them a break, the commissions are generous... Listing is pretty easy, but a buyers' agent really works hard for buyers, so I always try to offer a pretty good commission.
It really is no wonder that people generally dont respect our profession... A lot of agents charge a permium, then put the property on lock box, take their time returning call or dont even call back, and if an offer does come in they insist on it just being faxed rather than to allow the buyers' agent to present... If an agent charges a premium, I feel they should at least affer the service, such as being present for showings, being there for the inspection, actual marketing (rather than posting to mls and letting it sit), open houses, etc...
Great post! As real estate agents we are well aware of those facts, but the challenge is to educate the sellers. They need to keep in mind that their ultimate goal is to sell within their own time frame while netting the most money!
Aloha!
Larry and Shelia, Great post! Like everyone who has commented, I answered Neither before clicking on the post!
Good post and good comments. I always learn something from the conversation.
Dear Larry and Sheila -
SO TRUE! Not easy to explain but so very true.
"In RealEstate, as in every other business,you get what you pay for"
Have a happy day - Lynn
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