Monday, September 10, 2012

Will work for pizza and beer!

I had to laugh when mentioning to a colleague that we have an even lower rate budget real estate company moving into our area.  Yea!  Soon you'll see a notice from someone selling homes that they'll work for pizza and beer.  And, hey, if you put two toppings on the pizza they'll even post your home on mls.

Be afraid, consumer.  Be very afraid.  And do your own homework.  If you're considering a Realtor for your home, don't be distracted by how little their up front fee is (I was going to say if you pay peanuts you get monkeys, but that wouldn't be politically correct).  Speak to a minimum of three or four Realtors from different companies and commission structures.

One budget company was boasting about how much commission they would save you on a million dollar purchase.  First of all, if you have a million dollar home you're trying to budget sell you've already shot yourself in the foot -- but that's another blog.

Do your homework and investigate Realtors track record for service, but beyond that for what their average percentage of sale prices compared to the list price is.  If, on a million dollar home, my track record is 5% better than a budget company reps that translates to 50,000 more for you. 

Do I charge more once you've successfully sold your home.  Absolutely.  Am I worth it?  Absolutely.  Do you end up happier all around?  Absolutely.  Do I earn a cent until you've been successful?  Nope.  You are my absolute priority.  I'm not using your home listing to try to get others.  I'm doing everything in my considerable power to sell your home, for you.  But, enough about me!

The easiest way to be confused is to think that you've really saved money by not paying a strong commission rate.  So not true.  Imagine, for instance, that you want every Realtor in town to flock to your home to try to sell it for you.  Do you think they are excited about a paltry offering by you for their trouble?  Do you think, if someone is already working for next to nothing, they have motivation to go above and beyond on your behalf?  (What has your experience in Super Stores been?)

And, did you know that many buyers are signing contracts that guarantee their hard working Realtor a rewarding commission and that if the seller does not offer that commission the buyer has to pay?  Did you know that commission is considered part of market value of a home and that it comes out of the sellers side to allow financing?  If the seller is not offering a rewarding commission and the buyer is deciding which homes to see in consultation with their Realtor, where does that leave the budget commission properties with these qualified buyers?

And, did you know that many budget Realtors are able to maintain themselves in the business because they reap decent commissions from top drawer Realtors?  In other words, most take far more than they give.

Regardless of anything integral to the profession and the desire of top Realtors to keep the industry highly professional you don't have to concern yourself with our issues.

What you do have to concern yourself with is getting a premium price for your most treasured possession and understanding that that is done by attracting the most attention to your home.

Go for the steak and let the sizzle attract someone less informed!

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