How can I make this painfully clear? Earlier this week a woman phoned me after a client of mine recommended me. The client who recommended me is a professional banker and someone I've helped over the years complete 5 transactions on her own homes. The caller was totally disheartened with her current listing company. She had chosen a discount model to save some out of pocket money. In the past 3 months she has not had one showing.
I explained to the woman that while she was under contract with someone else it would be unethical of me to discuss her listing. She said she was in the process of "firing" her present firm and would be in touch. The next question she asked was how much commission I charged. (Which was rather funny after she'd ranted how dismally her "discounted commission" model was working for her.) I should develop a more compelling answer...how about "I charge the right amount to get the job done and save you thousands of dollars."
It seems counter intuitive that you could charge more AND save the consumer more....but in investments the size of a home you want to invest in the best Realtor and the most enticing commission structure for the best return to you. While some people are busy bending over to pick up dimes on the ground, the dollars are flying over their head and out the door. Why? Because if you don't have an extremely well educated, trained, creative thinking Realtor who is your advocate odds are good that your listing might be languishing at the wrong price, be inadequately represented on line, is missing great photos, never has an open house or Realtor tour, is not keeping someone awake at night thinking of ways to get the job done!
Not to mention the very obvious. If your Realtor cannot negotiate their own commission (and more importantly understand that an attractive commission will entice cooperating Realtors) how effectively do you think they can negotiate selling prices on your behalf? This is a simple yet very profound consideration! The money sellers make and buyers save is in exact proportion to the skills, motivation and heart of their Realtor.
Choose very, very carefully how you go about selling your home. You owe it to yourself to include a top rate Realtor in your sights before thinking that saving a small percentage on commission will in the end serve you best. It simply won't. And, a little known fact, is that a great Realtor, knowing the cost of staying on the leading edge of their profession will ask for an increased commission from discounted listings. Why? Because we really are worth it, and to stay at the top of our game requires a great investment of time and money! Many clients working with the best Realtors sign an Exclusive Buyer's Agency form agreeing that their Realtor will be paid a premium rate. The buyers decide which homes to look at. It is in your best interest for them to be motivated to see yours! Many buyers will not look at For Sale By Owners or discounted listings. You should know that.
Ask one simple question to any Realtor you are speaking with: "How many of your listings do you successfully sell and for what percentage of the asking price?" That, my friend, is where the true story is told.
I explained to the woman that while she was under contract with someone else it would be unethical of me to discuss her listing. She said she was in the process of "firing" her present firm and would be in touch. The next question she asked was how much commission I charged. (Which was rather funny after she'd ranted how dismally her "discounted commission" model was working for her.) I should develop a more compelling answer...how about "I charge the right amount to get the job done and save you thousands of dollars."
It seems counter intuitive that you could charge more AND save the consumer more....but in investments the size of a home you want to invest in the best Realtor and the most enticing commission structure for the best return to you. While some people are busy bending over to pick up dimes on the ground, the dollars are flying over their head and out the door. Why? Because if you don't have an extremely well educated, trained, creative thinking Realtor who is your advocate odds are good that your listing might be languishing at the wrong price, be inadequately represented on line, is missing great photos, never has an open house or Realtor tour, is not keeping someone awake at night thinking of ways to get the job done!
Not to mention the very obvious. If your Realtor cannot negotiate their own commission (and more importantly understand that an attractive commission will entice cooperating Realtors) how effectively do you think they can negotiate selling prices on your behalf? This is a simple yet very profound consideration! The money sellers make and buyers save is in exact proportion to the skills, motivation and heart of their Realtor.
Choose very, very carefully how you go about selling your home. You owe it to yourself to include a top rate Realtor in your sights before thinking that saving a small percentage on commission will in the end serve you best. It simply won't. And, a little known fact, is that a great Realtor, knowing the cost of staying on the leading edge of their profession will ask for an increased commission from discounted listings. Why? Because we really are worth it, and to stay at the top of our game requires a great investment of time and money! Many clients working with the best Realtors sign an Exclusive Buyer's Agency form agreeing that their Realtor will be paid a premium rate. The buyers decide which homes to look at. It is in your best interest for them to be motivated to see yours! Many buyers will not look at For Sale By Owners or discounted listings. You should know that.
Ask one simple question to any Realtor you are speaking with: "How many of your listings do you successfully sell and for what percentage of the asking price?" That, my friend, is where the true story is told.
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