I am sure most of you have heard of them. These are companies that charge 1-5% realtor fees or pre-set fees. But if you’ve heard the expression “you get what you pay for” - this is a very good example of that.
What do you get for the set fee brokerage or 1% fee - Your property gets entered in the MLS system, a lot of times partial or incorrect info makes it through; and you get a small sign in your yard (might as well be FSBO at least you’re in charge). With 2-3% in addition to the items above, you might get a lockbox on your door.
What do you get for the set fee brokerage or 1% fee - Your property gets entered in the MLS system, a lot of times partial or incorrect info makes it through; and you get a small sign in your yard (might as well be FSBO at least you’re in charge). With 2-3% in addition to the items above, you might get a lockbox on your door.
With 3-5% you might get a bit more. Maybe a bigger sign, and maybe a listing in the brokerage’s website; occasionally a newspaper ad. You have to understand that the only way these companies make money is to turn a lot of volume to make up for the money lost in discounted commissions.
Have you ever tried to call one of the numbers on these “discounted commission” companies? Try it! A lot of times you get this answer: “you’ll have to call a local agent if you want to see the property”. Last time I got that answer I tried to explain to the lady that I WAS a local agent and I needed the code to the lockbox so I could show the property. She wasn’t sure who would have that, but she promised to call me back.
Now if you think that these agents are doing the same quality job that they would’ve done had they gotten the full 6-7% commission, you’re mistaken. Put yourself in those shoes! If your boss called you in the office tomorrow and said: “Hey, John, I’m having a hard month and can’t pay all my bills this time. Would you work for $7/hour this month instead of your regular $15/hour? I would really appreciate it!” - I can almost hear you give him a piece of your mind right there on the spot! “Is he kidding? What about YOUR bills? Is this a joke? If it is, it sure is a very bad one!”
My point is that we realtors rely on those commissions to take care of our businesses as
Have you ever tried to call one of the numbers on these “discounted commission” companies? Try it! A lot of times you get this answer: “you’ll have to call a local agent if you want to see the property”. Last time I got that answer I tried to explain to the lady that I WAS a local agent and I needed the code to the lockbox so I could show the property. She wasn’t sure who would have that, but she promised to call me back.
Now if you think that these agents are doing the same quality job that they would’ve done had they gotten the full 6-7% commission, you’re mistaken. Put yourself in those shoes! If your boss called you in the office tomorrow and said: “Hey, John, I’m having a hard month and can’t pay all my bills this time. Would you work for $7/hour this month instead of your regular $15/hour? I would really appreciate it!” - I can almost hear you give him a piece of your mind right there on the spot! “Is he kidding? What about YOUR bills? Is this a joke? If it is, it sure is a very bad one!”
My point is that we realtors rely on those commissions to take care of our businesses as
well as our families. Actually we don’t get to collect a penny of that money until your house sells, which sometimes takes a long time and a lot of operating expenses (signs, lockboxes, MLS fees, phone, fax, copies….) or advertising in the media - newspapers, magazines, TV, web and more. All this comes out of our pockets, and if your house doesn’t sell, we never recover those expenses!
Here is another view at this discounted brokerage trend: after your discount agent has listed your house in the MLS, it is exposed to hundreds of other agents working with buyers. You think: “Good! One of them will sell it!” Here is the question though: Do you think these buyer’s agents would rather show and sell houses where they would receive their full 3% commission or the ones that they would make a mere few hundred dollars?! I’m sure you know the answer to that.
By the time you go thru a few of these “cheap” options of selling your house, and your house still hasn’t sold, you realize that maybe you should call the “real” agents to get the job done. By this time you have already lost valuable time, you have lost the market’s interest on your property, and you sure didn’t save any money.
Please, keep all this in mind if you are thinking of selling your home! It is true that not all of us (realtors) are cut from the same cloth and even for the same commission, we will all offer a variety of levels of service, and this is the part where YOU have to do your HOMEWORK: interview more than one agent and more than one company and compare what each has to offer. I hope you would include me in the list of the agents you will interview for the job! I would be honored to represent you in such an important occasion.
Here is another view at this discounted brokerage trend: after your discount agent has listed your house in the MLS, it is exposed to hundreds of other agents working with buyers. You think: “Good! One of them will sell it!” Here is the question though: Do you think these buyer’s agents would rather show and sell houses where they would receive their full 3% commission or the ones that they would make a mere few hundred dollars?! I’m sure you know the answer to that.
By the time you go thru a few of these “cheap” options of selling your house, and your house still hasn’t sold, you realize that maybe you should call the “real” agents to get the job done. By this time you have already lost valuable time, you have lost the market’s interest on your property, and you sure didn’t save any money.
Please, keep all this in mind if you are thinking of selling your home! It is true that not all of us (realtors) are cut from the same cloth and even for the same commission, we will all offer a variety of levels of service, and this is the part where YOU have to do your HOMEWORK: interview more than one agent and more than one company and compare what each has to offer. I hope you would include me in the list of the agents you will interview for the job! I would be honored to represent you in such an important occasion.
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