Learn about the impact of commission on your bottom line.
Today, I’m here to address all the sellers out there, particularly those who are seeking a good deal. My question to you is: How confident are you that paying less commission will result in more money in your pocket?
The topic of commissions is quite common in the real estate world these days, isn’t it? Many people believe that real estate agents are overpaid. If you were to ask a real estate agent about the effort and work involved in earning their commission, they would tell you that it’s a substantial amount. However, agents are often treated as commodities.
Why is that? It’s because many agents are willing to offer discounts and be seen as commodities. However, does paying an agent less guarantee that you will ultimately net more money? That’s the crux of the conversation. Many sellers express their desire to maximize their profits from the sale in order to have a substantial down payment for their next home or investment property.
However, does paying a lower commission truly translate to an improved bottom line? What I’ve observed is that sometimes a lower commission means a lower level of service, and a lower level of service can lead to mistakes in marketing, home preparation, pricing strategies, or negotiations, which can ultimately result in a home selling for less.
Oftentimes, a seller says that their home will sell itself, given the high demand and low inventory in the current market. I don’t doubt that the home will sell, but what sets apart a home selling for its market price from one that sells for 2% to 10% more? It’s the difference in strategies—a unique approach to home preparation, pricing, marketing, and negotiation.
How certain are you, as a seller, that my team and I can’t sell your home for 3% more than what another agent, charging you 2% less, can achieve? These are the questions I urge you to consider. If you’re contemplating selling your home, does a lower commission always equate to more money in your pocket?
My answer leans toward “maybe not.” Remember, if you have any questions about this topic or real estate in general, please feel free to reach out to me by phone or email. I would be happy to help you out.