Important Factors in Negotiating Realtor Commissions
Another important factor that guides many sellers when choosing which real estate agent they want to market their home is Realtor commissions. Often times, people are short sighted with this one. A number of people mistakenly believe lower commission charged equal more money in his or her pocket. This can be faulty thinking and often times quite incorrect. Here’s an important and factual concept to understand; A skilled agent can easily make their client more money in a transaction through understanding pricing, negotiating skills, marketing expertise and overall real estate knowledge.
Although, this is not to say that a great agent may charge a seller less… But this should never be your determining factor when choosing an agent. We have all heard the saying ‘You get what you pay for’ and choosing an agent solely based upon Realtor commissions can bite you in the butt later. For example, if your husband or wife required a particular surgery, you wouldn’t choose the surgeon who offered the best rates… Would you? Well, why is choosing a Realtor any different? Believe it or not, the skill level from one agent to another can vary from the knowledge of a high school student to that of a PHD graduate within the industry. For some reason in this business people do not always think this way.
I have also seen times when a seller chooses a real estate professional purposely because that person has no business. With the thought process being that the top producing agent is TOO BUSY and cannot provide the level of service they desire. This is rarely ever the case, but I have experienced some top producing teams who have had growing pains with handling their business. So, I can see some truth to this theory, but again, there may be another reason the other Realtor has no business. Nobody else wants to hire them! Paying someone lower fee’s or getting a discount doesn’t always equal value.
In the end, when researching or interviewing potential Realtor candidates, make sure commissions aren’t your only determining factor. In my next blog I plan to discuss the important questions and facets you should be looking for when hiring a real estate professional.
Thank you for reading and I welcome any feedback in the comments below.
To get an idea of how to save money on your next real estate transaction while still getting top of the line service, just inquire below…
Donny Karcie, MBA
RE/MAX Mountain Properties
731 W Gurley Street, Prescott, AZ 86305