Sticking to your real estate guns

I often hear real estate agents complain that they lose listings solely based on their commission rate. This is a common gripe, and when I read and listen to the musings of real estate agents outside of the country, I have come to think it is a universal problem. It seems around the world, real estate agents are being judged on their commission rate over anything else they are offering a customer. As a result, often agents are asked to reduce their commission and when they refuse, they are opening themselves up to losing the listing.

  

 I know of real estate agents who have won the standard “interview” process that a vendor goes through when they are looking for the realtor to sell their home. I also know of these winning agents then losing the gig because the vendor asked them to reduce their commission and they refused. In this situation, some vendors then go with the real estate agent that was actually their second choice rather than pay the higher rate to their preferred realtor come sale time.

  

This scenario interests me greatly because an agent with a higher commission rate usually has good reason for doing so. Particularly in circumstances where this agent is the first choice, it would seem the vendor actually knows that too. Whether it’s their reputation, record of sales or how much they are prepared to spend marketing the properties they have on their books, a higher commission rate is often indicative of a higher level of service. 

  

When these real estate agents who know they will do the very best for a customer lose a listing to a competitor based only on commission, it can be a bitter pill to swallow. Professionals know how much they are worth and why, and when it comes to selling homes, the proof is in the pudding. I have said before that the best choice when it comes to a real estate agent isn’t necessarily the one that seems to be presenting a bargain, and I stand by that. Although a particular agent may have a higher commission rate, have a look at why. Is it because he or she is a lot more confident in their ability to sell your property based on their past experiences? Because their record with selling properties similar to your own outshines other realtors in the area? Or maybe the marketing plan they offer for the properties they represent blow the competition out of the water? Chances are, there’s a valid reason and that should be considered as carefully as the rate of commission to be paid.

But if things still don’t work in your favour, who knows, if the cheaper agent ends up not being able to sell that home, the commission rate may become secondary after all.   

Posted by Charles Tarbey on 10/09/2009 at 9:23 AM | Categories:

11 Comments

Amsterdam Apartments

Amsterdam Apartments wrote on 24/09/2009 7:22 PM


Easy option to get useful information as well as share good stuff with good ideas and concepts
paddy

paddy wrote on 28/09/2009 3:11 AM

Cool site!! Thanks for info!!!
уеб дизайн

уеб дизайн wrote on 02/10/2009 8:45 AM

Hi,
I can see that you are putting a lot of time and effort into your blog and detailed articles! I am deeply in love with every single piece of information you post here. Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thanks for sharing!

Regards,
Nick
Aprilaire

Aprilaire wrote on 12/10/2009 4:50 PM

I want to thank for this great read of article. I like this. Thanks for sharing.
Christina

Christina wrote on 15/10/2009 6:11 AM

Interesting post
Property Management Melbourne

Property Management Melbourne wrote on 31/10/2009 12:46 AM

I loved the way you exlained things. Much better many here .
North Cyprus villas

North Cyprus villas wrote on 31/10/2009 12:47 AM

Hey I love your style I will subscribe for your feed please keep posting!
Roofing Contractors Maryland

Roofing Contractors Maryland wrote on 31/10/2009 12:49 AM

Very interesting post..Iam very much enjoyed by reading your site..this article has provided a useful info..Thanks for the info given..
Free iPod Touch

Free iPod Touch wrote on 02/11/2009 5:29 AM

Cheers for this!
Amsterdam Travel

Amsterdam Travel wrote on 03/11/2009 10:20 PM

Great detailed information, I ll be visiting you more frequently, here is very interesting information.
selling house quickly

selling house quickly wrote on 14/04/2010 11:37 AM

Your tips regarding regarding real estate are very helpful, surely gonna help me.

I bookmarked your blog! keep us posting :)
Thanks mate.

Write your comment





Leave this field empty: