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 pro charges more, they go cheap. They calculate saving $5,000. But this is false economy. The low fee agent loses you money at settlement. Why? The result is poorer. The lost value is much more 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, they advise: "You should sell." 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 higher price, and I cost $5,000 more, you win. That is the net result. Look at the net, not the fee.
Price vs. Performance In Real Estate
There is a difference between price and result. McDonalds and fine dining are not the same. Local agents are no different. Some just open doors. They upload photos and wait for the phone to ring. That is easy. That is not service.
A skilled agent creates competition. We chase leads. We manage the look. We write compelling ads. Crucially: we deal. When the offer is "$600,000 is my limit", the order taker writes it up. I know how to squeeze. That extra $20,000 is pure profit. That is skill.
Budget brokers rely on volume. They need to sell 10 houses to survive. They are too busy to maximize your price. They treat you like a number. I limit my listings. So I can dedicate time for you. My commission enables me to give 100%. Don't be a number.
How Negotiation Skills Impact Your Pocket
Negotiation is not arguing. It is psychology. It is knowing when to speak and when to shut up. 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 skill. Not to put a sign up. You hire us to handle the money conversation. If your agent is weak, they will cost you. They will suggest you drop your price rather than negotiating. Simpler to beat you down than to get more. Discounters reduce. Pros increase offers.
Interview question: "Give me an example of a recent negotiation." Watch them. Should they say "It sold quick," be careful. You want to hear "The offer was $500k, I worked them to $530k." Hire that one. I love the deal. I guarantee it.
Marketing Budgets: Who Pays For What?
You might hear "advertising included." Great deal? No. Someone pays. If they pay, they go cheap. You get the small ad. Cheap snaps. Small sign. Why? it is their cost. They minimize cost.
To sell for a premium price, you need the best. Top spot online. Video. 3D tours. Social media ads. It isn't cheap. It reaches more people. Volume creates price. Bidding wars = profit. If you save $1,000 on marketing and fail to reach someone, you might lose $10,000 in price. Not smart.
I recommend investing in marketing. Because then we control it. We go big 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 common scam of desperation promising a high price. They say your home is worth $700k when market value is less. They do this to flatter you. They get the listing because you want $700k. Once listed, no offers. They blame the market. They ask for price drops to the real value. It sells low after months of stress.
You picked the cheat. The one who told the truth who was real lost the job. Don't reward lies. If it sounds too good way more than others, check the data. Where is the evidence?. No data, they are buying the listing. I tell the truth. Data leads me. I might be conservative, but I deliver. I often exceed it with hard work, not empty promises.
Watch out. It is a game. Find the ethical agent. Find the one who tells you what you need to hear, not fluff. That is the expert who succeeds at the top.
How To Spot A great Agent
Before you sign, ask these questions:
1. How do you negotiate?.
2. have a look online Can you show me your track record?.
3. What if we get two bids?.
4. Justify your commission.
5. How will you find buyers?.
How they respond reveals the truth. If they are unsure, next. If they have a process, sign them. If they discount immediately, don't hire them. If they give away their money, they will give away yours.
I welcome these questions. I love the interview. I am ready. I deliver. Let's work together. Not on price, I get results. Quality pays for itself in the end.