FREQUENTLY

ASKED

QUESTIONS

Will my home sell for a higher price if I pay a higher sales commission to a listing agent?

There is no correlation between the sales commission you pay and the quality of offers you receive from home buyers.  Most real estate brokers charge a listing fee as a percentage of the sales price.  Although this serves to align the broker’s success with yours as the home seller, there is no relationship, and certainly no cause-effect, between what you pay a broker and what a buyer will agree to pay for your home.

 Will agents at the big real estate companies show properties listed by the smaller companies?

All listings are provided equitable exposure through the multiple listing service (MLS) and the standards that all brokers must adhere to for MLS participation.  Brokers and agents do not sort and show properties according to the name of the company that has the listing.  If the property’s MLS listing fails to attract attention, it has more to do with an improper price, restrictive showing conditions, a lackluster description, amateurish photos, misclassifications (such as incorrect school information), and omissions of key features of the property (sizes of rooms).

Don’t the big-name real estate companies with lots of agents have access to more buyers?

The real estate market is largely searched online by home buyers without an agent, and property information is obtained in real-time via the internet.  Home buyers shop without an agent as they seek to identify their wants in a home while discovering what homes are available for sale.  Technology now enables buyers to view all listed homes for sale without an agent.  Virtual tours of homes can be taken by anyone anywhere in the world without the need for a real estate license or the assistance of a licensed broker.

 Won’t a broker being paid a 6% or 7% commission work harder and better for me than a broker earning a discounted commission?

The phrase, “you get what you pay for” plays into the idea that a higher commission rate equals increased professionalism, higher competence, and top-tier resources to contribute to selling homes.  Okay, how would you feel about me asking you to pay 8% or 9%?  The reality is that the old scheme of having four persons sharing the commission check is obsolete today. 

 Each company and each broker has a business plan they follow to meet profitability goals.  It is the broker’s success at executing the plan that determines the optimum price point to offer services.  Some models, for example, may favor transaction volume over “per transaction” profit margin.  Some business models require luxury property sales versus entry-level type sales.  It is truly the business savvy broker that can offer the greatest value to you without gouging you with a 6% charge.

 Key considerations to find the best fit of services at the best rate:

·       A smaller company with more modest overhead costs and fewer persons in the revenue stream can offer highly effective services and pass savings to you in the form of discounted fees & commissions

·       A smaller company may mean you have a direct line of communication to the broker rather than primarily through an agent or an unlicensed staff person

·       A smaller business often has less staff turnover and can be more flexible to customize service around each home seller’s unique needs