Why 1% Commission Can Cost You $20,000
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. But this is false economy. The low fee agent costs you the most at settlement. Why? The result is poorer. The lost value is much more than the saving in fees.
Consider this. If they give up their own income, how will they negotiate your house price? They don't. They give in straight away. When a buyer offers low, the cheap agent says: "It is a good offer." They want the quick sale. They don't fight. A pro fights for every dollar. We are professionals.
I see sellers in this market drop tens of thousands to save $4,000 in fees. It is tragic. You sell your home once. You want the top dollar. The fee is an investment. If the agent gets $20,000 more, and the fee is slightly higher, you are $15,000 better off. That is what matters. Count the cash in hand, not the expense.
You Get What You Pay For
Understand the distinction between cheap and good. A cheap suit and a tailored one are worlds apart. Real estate agents gawler follow the same rule. Some are basic. They list online and wait. Anyone can do that. Why pay for that?.
A professional creates competition. We chase leads. We style the home. We use psychology. And most importantly: we close. 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 your money. That is value.
Discounters need quantity. They need bulk sales to make a living. They don't have time to spend time on you. You are just another sale. I limit my listings. To give attention for you. I charge correctly to serve you best. Don't be a number.
How Negotiation Skills Impact Your Pocket
It isn't shouting. It is influence. Knowing tactics and when to shut up. Reading people. Using leverage. A master can make a buyer increase their offer against themselves. We use competition to drive the price up.
This skill takes years to master. It is worth money. You employ me for this reason. Not for the sticker. You pay us to talk cash. If they are scared, you lose. They ask for reductions instead of lifting the buyer. Easier to lower price than to push a buyer. Lazy agents crunch sellers. Great agents lift buyers.
Ask them: "Show me a deal you did." Hear what they say. If the answer is "It sold quick," run away. You want to hear "I rejected the first offer." That is the winner. I love the deal. That is my job.
Understanding Advertising Costs
You might hear "advertising included." Great deal? Be careful. Someone pays. If marketing is "free", they spend the minimum. Basic listing. Bad pictures. Small sign. Why? it is coming out of their pocket. They want to spend less.
For the best result, you need the best. Highlight ad. Drone shots. Virtual styling. Facebook boost. It is an investment. But it finds more buyers. More buyers = more competition. Competition = higher price. Being cheap on ads and fail to reach someone, the result drops. Poor return.
I advise you pay for ads. Because then we control it. We spend what is needed to get the result. Your house. Showcase it. Don't scrimp to save a few dollars. It drives the sale.
Beware Of Over-Quoting Agents
A dirty tactic of bad agents lying about value. They promise your home is worth $700k when reality is lower. The goal is to win the job. They get the listing because you want $700k. Once listed, it sits there. They blame the market. They reduce it to $600k. You get market value eventually.
But you hired the liar. The one who told the truth who said $600k missed out. Be smart. If an agent promises to be true, be suspicious. Prove it. If they can't, it is a lie. I value correctly. Evidence based. I might be lower, I achieve it. I get more via strategy, not false hope.
Protect yourself. Real estate is full of sharks. Look for integrity. Pick the agent the hard truth, not fairytales. That is the guide who succeeds for the best price.
Questions You Must Ask Before Signing
When interviewing, checklist this:
1. Explain negotiation.
2. Prove your results.
3. How do you handle discover more reference multiple offers?.
4. Why is your fee higher/lower?.
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 as soon as you ask, don't hire them. If they give away their money, they will give away yours.
I welcome these questions. Challenge me. I have the answers. I deliver. Let's work together. I am not the cheapest, I am the value choice. Quality is always free in the end.