"You get what you pay for!"

By
Real Estate Agent with Fathom Realty West Sound WA State 52404

I was watching a special news report on one of our local stations the other night, one of those supposedly "consumer-beware" investigative journalism pieces, designed to create splash, controversy, and drive up ratings.

Their topic was "Real Estate Commissions."

While the reporter who wrote the story claimed that it offered a very fair and balanced viewpoint (she told me that her sister was a real estate agent), the majority of the information that she shared was extremely biased towards what is known as "Limited-Service" agencies. She portrayed traditional "full-service" agents in a very negative light, and made the basic premise that anyone paying full commission for selling their house was an idiot (Okay, she didn't say idiot, per se, but you get the idea).

One of the few things she did say during her report that I agreed with was the statement, "You get what you pay for!"

With a "Limited-Service" brokerage, you usually have a menu of options or listing plans to choose from. The first option/plan usually gets you a sign in your yard. They may put your house up on their website, or some will even input it into the local multiple listing service. From that point, everything else is pretty much an upgrade and increase in cost. You want flyers? That's extra. You want a photo gallery? That's extra. Newspaper advertising? Extra. You want a Broker's Open House? Sorry, we don't do that. Open Houses on the weekend? Nope. There's a reason why they're called "Limited-Service" agents!

But the one thing that remains constant throughout the entire process, regardless of what option you choose, is that you are the one who is solely responsible for doing all the negotiating and dealing directly with prospective Buyers. There is no licensed, trained professional advocating for your best interests, no one to counsel you on your legal rights and options, no one to coordinate all the various elements of the transaction to ensure that your home sells in a smooth and timely manner.

So the statement is an accurate one - "You really do get what you pay for!"

A good, experienced professional realtor will always be able to justify the commission they charge, and demonstrate the value of the services they offer.

Then, when your house has been effectively marketed and sold in a reasonable time frame, for full, or close to full market value, when the whole transaction was smooth and stress-free, and you are empowered to embark on the next great adventure in your life, you'll look back and say, "I got what I paid for!"

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Rich Jacobson is a District Director for Fathom Realty and a licensed REALTOR®; an avid Crab Hunter, Clam Digger, and Oyster Shucker, He is the Social Media Evangelist for Life on the Kitsap Peninsula & The Western Puget Sound in scenic WA State.

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Ambassador
1,090,321
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

At least you wrote better than I in the beginning. Funny we don't have pictures either..

Aug 10, 2008 08:08 AM #17
Rainer
304,164
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Rich,
You showoff, you blogged well right out of the starting gate!

Aug 10, 2008 12:32 PM #18
Rainmaker
298,871
Kathy McGraw
CELLing Realty - White Water, CA
Riverside County CA Real Estate

Rich....Can we say "no wall of words" LOL :)   Yes the first blogs can be pretty scary :)

Aug 11, 2008 03:13 PM #19
Rainmaker
1,477,228
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Vintage Rich...  

Aug 12, 2008 01:06 PM #20
Ambassador
557,018
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Gracious...

It seemed appropriate to take a stroll all the way back here to tell you about the most beautiful flowers I received. Not only were they beautiful but I took very good care of them and they lasted just over two weeks. Not bad. Not bad. I would recommend that florists to everyone :)

TLW...ROAR!

Oct 14, 2008 01:26 PM #21
Anonymous
One again lack of education is the problem

I say this over and over , We "Realtor's, and Sales agent" do a poor job of showing the community what we do. NO one would ever question a DUI lawyers fee if they would get them out of the ticket or jail time. !

Alison Creamer
RE/MAX Allegiance
www.bzibee.com

Oct 26, 2008 11:27 PM #22
Rainer
9,898
Eva Liland
Platinum Real Estate Group - Canyon Country, CA
Realtor Canyon Country CA, Used Mobile Homes - Manufactured Homes

Might as well stay a FISBO and that is absolutely FREE or is it?!? Free to negotiate down and loose out at the end. What a great discount.

Oct 26, 2008 11:40 PM #23
Rainmaker
1,477,228
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Wow this is an oldy but a goody?  Wondering where two new comments came from? Is this featured in the newsletter?

Linked too from another post?

Hey this came to life back in August too. Was this your first post?

For newbies Rich J also has some great posts about what comment spamming is!

 

 

Oct 26, 2008 11:47 PM #24
Rainer
11,016
Jim Troth
Habitation Investigation LLC - Marysville, OH
Inspecting and protecting home buyers and agents o

I agree... you do get what you pay for.  As a home inspector where people at times look for the cheapest inspector not knowing that all inspectors are not the same.  There is a person in my area who will do an inspection for $75.00, crazy.  I hear people are getting what they paid for there.

The difference between inspectors can be in the type of training, the amount of training, the equipment used, ect.  There is also a difference in how much time an inspector will give a home buyer.  I try to schedule only one whole house inspection a day, this allows me to spend more time with a client than other inspectors will give. I may charge a but more because of this, however the value the client gets from the extra time and effort is well worth it to the client.

All this applies to agents as well. Better service deserves better fees. 

Jim Troth, Home Inspector

http://www.HomeInspectionsInOhio.com

Oct 27, 2008 12:50 AM #25
Rainmaker
643,145
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Rich, I think "you get what you pay for" is true in everything, (but especially true in real estate.)  Even when I buy products I will pay the extra and get the premium product.  The older I get the more I have realized that I just need to cough up that extra change or I will regret it. 

Oct 27, 2008 01:21 AM #26
Ambassador
730,179
Courtney Cooper
Ben Kinney Brokerages Leadership at our Keller Williams North Seattle Office - Seattle, WA
206-850-8841

HI Rich - I'm all about different biz models, but you DO get what you pay for!!!!!  Those pieces burn me up:)

Oct 27, 2008 01:58 AM #27
Rainer
1,580
John Guy
Guy's Home Inspection Services - Winston-Salem, NC

As a home inspector, I prefer to work with agents and look forward to the day when I can respectfully decline work from FSBOs. We have found that when a good agent is involved, the transaction is much smoother and we are not asked to go beyond our expertise (legal and contract issues, for example). A good agent is invaluable in providing guidance and direction, especially to first time home buyers. Keep up the good work!

Oct 27, 2008 02:40 AM #28
Rainer
8,924
Jason Daley
Bremerton, WA
Kitsap County Real Estate, Bremerton, WA Real Estate

I'm sure with the way the market is right now, more people are being lured toward the Cheapest Option, trying to save a buck. When in actuality they need competent WELL qualified Professionals more than ever, someone who cares how much they get for their home, and has all the right tools to effectively get it sold. Not someone who gets a flat rate no matter how low it sells for.

Oct 27, 2008 07:37 AM #29
Rainmaker
24,067
Mike Hughes
Mike Hughes Team - Hughes Residential - Newton, MA
Services Newton, Brookline, Lexington, Waltham & W
Rich, Great post ... thank you! One of the few times I feel this way, is with RealEstateShow.com -- I think you offer more than we pay for -- keep up the great service!. I've actually had a client tell me this too ... it's great when we can add value to the equation. Best regards, Mike
Oct 28, 2008 04:25 AM #30
Ambassador
918,182
Kristal Kraft
The Berkshire Group Realtors - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Wow, I''m impressed~!  You got 30 comments on your first post?  How cool is that?

kk

 

Feb 07, 2011 09:53 AM #31
Ambassador
580,641
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

I wonder if anyone will still get a notification if I comment on this post? 

<sigh>

I miss those early days!....

Jun 14, 2011 09:34 PM #32
Rainmaker
1,477,228
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

I will.

How did the one you commented on a couple of  days ago NOT get new comments?  Wondering if "dirty diapers" are the magic words.

Jun 15, 2011 12:14 AM #33
Anonymous
Maureen Francis

Got me!

Jun 15, 2011 12:26 AM #34
Ambassador
580,641
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

Sweet! The two MO's!....Howdy, Ladies!....How's tricks?....yeah, 'Dirty Diapers' has powerful mojo, for sure!

Jun 15, 2011 05:05 AM #35
Rainmaker
1,477,228
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

the Maureen Corps shows up.... 

Jun 15, 2011 06:28 AM #36
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