DISCOUNT COMMISSIONS.....love em or leave em?
What is it about commissions that gets people sooooo excited?
When you talk about discount commissions with Sellers, does it get their attention? Absolutely! Do they love it? Absolutely! Especially in this current 2013 Seller's market that we are now experiencing here in the Sacramento Valley.
Well, that's just dandy, but boy it irritates the Selling Agents. And they surely don't hesitate to express their dislike and disapproval about them. What makes the Sellers (who love it) different from the Selling Agents (who don't).....aren't they similar to Buyers and Sellers? Absolutely!!!
So, let's do a tongue-in-cheek comparison here, shall we:
Buyers want to acquire properties at the lowest price possible and they want that property to be in the best condition. Sellers want the highest price possible and would prefer to do the least amount possible.
Sellers want to pay the lowest commission for a "full service" listing. Agents want the highest commission with the least effort and expenses possible.
As Realtors, we accept the first scenario (hopefully with grace and dignity) much easier than the second scenario, because we all know that is the nature of real estate. However, in our current market, isn't the second scenario also the nature of real estate market?
If it takes one week (or less?) to put a new listing into escrow, why wouldn't the listing agent agree to reduce their commission, get the house quickly sold for top price and move towards closing that new Buyer? What "full service" did you provide that is justifiable marketing, advertising, etc. warranting a 6% commission? If you accept less than 6% commission and quickly put that house into escrow then you have the time and energy available to move on to the next listing or Buyer, right? Right? RIGHT!
I realize as a Buyer's agent who is constantly out there pounding the pavement....aka writing 20+ offers and PRAYING that one gets accepted for my Buyers...that accepting a 2% commission is painful, but I'd rather get something rather than nothing. Let's face it....we all know that this market can be tough (Hmmmm, I was just writing about a "tough" market a year ago but it was a completely different "tough" market!), and as agents we also know that sometimes Buyers will go directly to the listing agent to "cut a deal" so why take that chance and poo-poo a reduced commission?
I've been selling real estate here in the Sacramento Valley for 16 years, since I was licensed in 1997. I represent both Buyers and Sellers, equally. I'll admit I've never been particularly fond of reduced commissions....until now. I see them as an opportunity to set myself apart from my competition. I see them as an opportunity to put more money in my client's pocket, even though it would appear I'm putting less in my own. I see them as an opportunity to put a deal together....where perhaps there wasn't one. I see them as....
What do you see them as?
Shelly Long Sachs
RE/MAX Gold Real Estate