As I drive around certain neighborhoods, I’m starting to see signs pop up on listings where a reduced commission is offered. Further, I have talked to other agents in our office that have gone to listing appointments and did not get the listing because the seller decided to go with an agent who offered a vastly reduced commission. But, are these reduced commission really in your best interest? Are they truly improving your bottom line?
For a seller to receive top dollar for their home in any type of market, representation is key – and are you getting that necessary representation and exposure? This all narrowing it down to you technically “getting what you pay for”.
As many of you may know, advertising is expensive and these expenses are only increasing over time. And advertising is not the only expense out there – you are looking at expenses for flyers, strong internet presence, paper advertising, open house expenses (food, beverages, signage, flyers, neighborhood mailers, advertising, gas for the vehicle (primarily when it comes down to showings and presentation of any offers that come in), signage, lock-boxes, photography, and at times video – and now the ever increasing need in making any advertising mobile friendly. Everything necessary to optimize your listings performance in getting it out there in front of the consumer. Further, if another agent brings in a buyer, this commission is then split with the cooperating agent – will cooperating agents be willing to show to their clients a listing that offers a non-typical, low commission over a commission they are used to getting? Or, if the normal commission is being offered to cooperating agents, how much less does that mean your agent is receiving and thus being able to place into the presence of your property?
So, how much of this is being sacrificed or are you willing to sacrifice?
I am not saying that all “bargain” commission offices or agents have reduced services. Some may be able to offer everything mentioned and still offer a lower commission as well. This is when it becomes important to compare services offered by each office/agent and establish what would be the best for you and your needs.
Ask such questions as:
- What type of marketing plans do you offer? Internet, paper, neighborhood outreach….
- Are you willing to do open houses?
- Is listing information and advertising mobile friendly?
- How quickly are you able to respond to inquiries? Will it be you handling the inquiries are someone else?
- Are you going to be available to show the home, or will someone else?
Overall, just interview and compare because I want you to have maximum exposure regardless of who you use – which not only increases your chances of receiving market value for your property, but vastly increases your chances of a quick sale.