There is a huge myth regarding real estate commissions. They think that all agents are the same. So they choose the discount agent. They think it is a saving. If the fee is low and the other is higher, they go cheap. They think they saved $5,000. This is wrong. The low fee agent costs you the most in the end. Why? The result is poorer. The gap in the final figure is often far bigger than the saving in fees.
Consider this. If they can't defend their own full fee, will they fight for your money? They won't. They give in straight away. When a buyer offers low, the discounter says: "Take it." They want volume. The last dollar doesn't matter. A good agent pushes for more. Because we value our skill.
I witness owners locally lose $20,000 or $30,000 to save pennies. It breaks my heart. You have one shot. You need the maximum price. You pay for performance. If I get you a premium, and I cost $5,000 more, you make more profit. That is the net result. Look at the net, not what you pay.
Price vs. Performance In Real Estate
There is a difference between price and result. McDonalds and fine dining differ greatly. Salespeople are the same. Some just open doors. They upload photos and wait for the phone to ring. That is easy. That is not service.
A skilled agent builds value. We work the database. We style the home. We use psychology. Crucially: we deal. When a buyer says "$600,000 is my limit", the cheap agent believes them. The pro knows how to squeeze. That increase is pure profit. That is skill.
Cheap agents rely on volume. They must sell many to pay bills. They rush to negotiate properly. They treat you like a number. I take fewer clients. To give attention on your result. My fee allows me to do the job properly. Avoid the churner.
The Skill Set That Matters Most
It's not fighting. It is psychology. It is knowing when to speak and when to listen. Understanding signals. Building pressure. An expert gets more money without them knowing. We use the market to elevate value.
It takes practice to perfect. It is worth money. You employ me for this reason. Not for the sticker. You pay us to handle the money conversation. If your agent is weak, they will cost you. They will suggest you drop your price instead of lifting the buyer. Easier to lower price than to get more. Lazy agents crunch sellers. Pros increase offers.
Ask them: "Give me an example a deal you did." Watch them. Should they say "It sold quick," run away. You want to hear "I created a bidding war." Hire that one. I love the deal. That is my promise.
Marketing Budgets: Who Pays For What?
You might hear "advertising included." Great deal? No. Someone pays. When it is included, they go cheap. You get the small ad. You get iPhone photos. Basic board. Why? it is coming out of their pocket. They save money.
To get top dollar, you need premium marketing. Highlight ad. Drone shots. Floorplans. Targeted marketing. This costs money. It casts a wide net. More eyes = more offers. Competition = higher price. Being cheap on ads and miss one buyer, the result drops. Poor return.
My strategy is you pay for ads. Because then we control it. We do it properly to get the result. Your house. Give it the best chance. Don't be invisible to save a few dollars. It drives the sale.
The "Buying The Listing" Trick
A dirty tactic of cheap agents promising a high price. They tell you you will get a huge price when it is worth $600k. Why? to flatter you. You sign with them believing the lie. Once listed, it sits there. They make excuses. They reduce it to $600k. It sells low after wasting time.
You chose the fake. The good agent who was real lost the job. Don't punish honesty. If the price seems high a crazy number, ask for proof. Prove it. Without proof, they are buying the listing. I value correctly. I base it on facts. I might be conservative, but I deliver. I get more with hard work, not false hope.
Protect yourself. There are tricks. Look for integrity. Select the person who tells you what you need to hear, not fluff. That is the guide who succeeds for the best price.
Questions You Must Ask Before Signing
When interviewing, quiz them:
1. Explain negotiation.
2. Can you show me your related information page track record?.
3. How do you handle multiple offers?.
4. Why is your fee higher/lower?.
5. What is your marketing strategy?.
How they respond reveals the truth. If they are unsure, next. If they have a process, they are the one. If they cut commission as soon as you ask, don't hire them. If they give away their money, they will lose your equity.
Ask me. Challenge me. I have the answers. I know my value. Pick me. I am not the cheapest, I get results. Excellence costs nothing with the final price.