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It's Still True – You Get What You Pay For

Posted at 10:24 AM, Dec. 7, 2006

Whenever I talk with a new client about listing their home for sale, one subject that always comes up is the commission rate. Sellers and buyers are bombarded with information about ways to save money selling a house. And one target is always the commission that will be paid to the real estate agent. Discount brokers and agents who provide limited service can promise smaller commissions. Sell-it-yourself plans promise no commissions. How is a seller supposed to know what to do?

You go back to basics and common sense. If you buy a television and choose a no-name brand that's cheap, do you expect it to have a great picture and to last a long time? Or do you know that you are getting lesser quality? Most people recognize that you get what you pay for.

It's the same with choosing a professional Realtor® and a full-service commission. You want to sell your house quickly and for the best possible price. The more qualified buyers who see your house, the more likely you are to do just that. And finding those buyers – not just Sunday-afternoon-lookers – takes market knowledge, experience, and investment on the Realtor's® part.

A Realtor® does so much more than stick a sign in the ground and put your house on a web site. An experienced professional will help you prepare your house for sale, qualify buyers so you only have people in your house who can buy and who are seriously looking to buy, help you negotiate the best price, handle the reams of paperwork that today's real estate transactions require, make sure all the details are covered, and always be available to answer your questions and provide support throughout the process. Remember that you may sell or buy a home a few times in your life, but professional Realtors® do it many times a year. The right one can save you time, money, and a lot of headaches. 

One of the interesting things we're seeing in the current market is an increase in the number of people who choose a full-service Realtor after having gone the do-it-yourself or discount route. When there are no showings and no offers, it doesn't take long to recognize the value of an experienced professional. 

And the bottom line…when the money is in your pocket as you walk away from the settlement table is what you want and need, you know the commission is worth it.

 

 

 

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re: It's Still True – You Get What You Pay For

Posted by Trevor Smith at 11:35 AM, Dec. 7, 2006

You've made the same mistake that thousands of traditional agents make.  You have equivicated full service with 6% commission.  There are many REALTORS, including myself, who offer the same services you have described, yet charge 4-5% commission or less!  The "You get what you pay for" attitude simply isn't true.  A great agent is a great agent whether he charges 4% or 10% commission. Its about the quality of the person, not the amount he charges.

re: It's Still True – You Get What You Pay For

Posted by Michael Trust at 11:40 AM, Dec. 7, 2006

Dear Trevor,

Thank you for your post. I appreciate your feedback. If I may - I never said what a "full service broker" charges. I think you're assuming that I charge 6% when in fact, that may not be the case at all. As in all things real estate, commissions are fully negotiable, and I fully negotiate them based on the clients' particular circumstance. I do believe, however, that an agent who signficantly discounts their commission on a regular basis may provide services that are more along the lines of "you get what you pay for". Certainly, you're correct: it's about the agent and what that agent brings to the table. However, in my market, the reality is that in order to the marketing necessary to get the property sold, an agent wouldn't be able to significantly discount regularly and still be able to provide the level of marketing necessary. It simply wouldn't be cost effective. This post was in no way intended to "slam" agents who take less traditional approaches. It was simply to point out that in some cases, going a significant discount route may not be the best option.


re: It's Still True – You Get What You Pay For

Posted by Trevor Smith at 10:43 PM, Dec. 7, 2006

I apologize.  Thank you for the clarification. I disagree that agents can't provide a full service marketing system if they discount.  I provide my clients a very similar listing program as my 6% commission peers, but for 4% commission.

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