Lower Commissions - Are they better for the seller?

If you pay your Real Estate Agent a lower commission, will you make a greater profit?

It is understandable that you want to pay a lower commission and lower fees, but that shouldn’t be your sole consideration when comparing Real Estate Agents. If an Agent is promising you a surprisingly high sale price and is willing to sell their services very cheaply to achieve it, the chances are the Agent is struggling for clients. If it sounds too good to be true, it probably is.

Why offer lower commissions?

This is usually a tactic of bargain-basement Real Estate Agents trying to attract new business.  The reason they don’t have enough business maybe because they provide a sub-standard service or they could have a bad reputation in the community and they need clients.  These Agents usually don’t have outstanding communication and negotiating skills and all they’re after is a ‘quick sale’.

We see low cost, fixed cost or discounted Agencies pop up from time to time, offering a variety of bargain services, however few of them last too long. You can’t run and sustain a viable business and provide the services required if you continually undersell your services. The Real Estate Agent simply won’t have the funds to market your house effectively.

All it takes is some simple mathematics to illuminate this situation. You may pay a couple of percentage points less, but this is not much in savings when compared to the discount you’ll end up marketing and selling your property for.

The cheapest Agent is rarely the one that will get you the best price for your property.

The top Real Estate Agents sell enough properties that they don’t have to worry about lowering their rates. Just like consumer products, such as cars and televisions, the old adage, you get what you pay for, is true when it comes to Estate Agents. When you sign with a cheaper Agent, you may get poorer service because they won’t be able to afford the high-tech advertising and high-quality marketing materials that a top-tier Real Estate Agent would use. Highly-qualified, experienced Agents provide you with the most comprehensive service, which in turn, lures in higher offers from a wider pool of buyers.

The most important thing is to find a reputable Real Estate Agent who you are comfortable with and who will work hard on your behalf to sell your home at the highest possible price. Be more interested in the service they are providing. If an Agent is going to make an extra effort, having inspections several times a week and upping the opportunities for exposure to the market, be happy to pay them what they think they’re worth.

Think it’s expensive to hire a professional? Wait until you hire an amateur.

Selling and buying real estate is about skilled negotiations and yes an Agent’s fee is negotiable BUT if you find the Agent easily buckles under pressure from you to reduce their commission, alarm bells should ring. How is this Agent ever going to negotiate a good price for your home on your behalf?

                              email: kooweerup@oneagency.com.au                    web: oneagencykooweerup.com.au

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