How Real Estate Agents Earn their Commission
“I want so sell my home, but I don’t want to pay a commission.” Ummm…Right… I am somewhat baffled when I hear comments like this. It makes me wonder whether some people really think that selling a home is as easy as falling off a log? And that real estate agents collect their commission checks for pretty much doing nothing? I’m not necessarily talking about myself here, but I see so many of my colleagues work their tails off for their clients and I believe they justly earn their pay. And I’m not talking about earning it in
terms of hours and effort they put in, but in terms of the tangible benefits they bring to their clients. How so?
More Money in Your Pocket
By the virtue of being in the business a real estate agent is in a good position to do two things really well: to accurately gauge the value of a home and to successfully negotiate with potential buyers. The importance of strong negotiating skills should be apparent, and someone who negotiates for a living (agent) is probably better at it than someone who doesn’t (seller). The importance of setting the right price is not always obvious though. Some people think that starting with a high price and lowering it later if need be is a good strategy. It isn’t. This often leads to too long of a time on the market and too low of a price once a buyer is finally found. By starting with the price that’s just right, the home will sell faster and the sellers will likely net more cash than they would have otherwise. And who is in a better position to help you determine the optimal asking price than an experienced agent who is thoroughly familiar with your area?
Faster Sale With Wider Exposure
What do successful agents spend most of their money on? (No, it’s not the flashy cars.) Advertising, advertising and more advertising. By investing (their own money!) heavily in advertising they give their clients maximum exposure. A seller who chooses to work alone will have to spend his own money on advertising and then try to compete with marketing budgets of professionals who do it for a living. Furthermore, agents network with each other in an effort to match eligible buyers with available properties. So when you hire an agent, you are not only hiring that one person, but his or her entire business network. A solo seller does not get that benefit.
Peace of Mind
Last but not least, the commission you pay to your agent buys you peace of mind. An experiencedlicensed professional knows the ins and outs of real estate transactions and has previously dealt with most obstacles you are likely to face. Having someone guide you through the maze of paperwork and help you overcome any problems encountered should give you the peace of mind that your transaction is being handled properly. And your peace of mind is also worth something, isn’t it?