What would you do if someone asked you to work for less than half of what you would normally get paid? Would you?
Would you think to say to your dentist, 'I'll use you for my fillings, but I am only willing to pay 50% of what you normally charge.' How do you think they would respond? If they said 'Sure' would you not be concerned about the quality of their work?
If you were told for the next month, that your salary would be half of what it is now, take it or leave it, how would you respond?
NO ONE makes soooooo much money that they can work for free. Every small business out there has expenses to pay. We all have overhead to pay. In my case, in listing homes, when I sign a listing to put on Realtor.ca (the MLS), I am agreeing to pay a Buyer's agent a fee to bring us a qualified Buyer and to get your home SOLD. That fee is typically half of what you are being charged to list and sometimes more. (Yes, I am saying that Buyer's agents have made more money than I in the sale of many of my listings). I have Office Expenses, Advertising Expenses, Board Fees, Licensing Fees, Photographers Fees, Insurance Expenses, Fuel Charges, Car Payments (just like everyone else) AND I work for free until your home changes hands! You don't pay me until the successful completion of the job! PLUS this is my income. This is money that I make to feed and clothe my family.
Please understand that I am not putting out there whether a Realtor® has value to you. If you didn't feel there was value, you wouldn't be trying to list with Me. What I mean is, that it is devaluing what WE as individuals do (in any career choice) when someone demands a 'take it or leave it' discount. If I choose to give you a discount, that is my choice AND it comes out of my pocket! The other Agent makes their normal money, my Brokerage gets their money, it's my income that I am giving up! Just like if I frequent a friend's store and they choose to give me a discount.
If you are looking for a discounted listing agent, go with discount brokerages. There are plenty of companies that will take your money and put your home on the MLS for a nominal fee (You still have to agree to pay the Buyer's agent fee - and realize that many won't show your home if you are offering a low 'flat fee'). The normal commission for a Buyer's agent is 2.5% plus HST. I have worked with 'For Sale By Owners' many times and negotiated my Buyer Agent commission down to get my Buyer the home they want for the price that they can afford. Also as a Seller, Understand that the Seller pays the commissions from the PROCEEDS of the sale - therefore the purchase price is paying for the Representation. A Buyer then is paying for their Buyer's Representation in the purchase price and this way that cost is in the mortgage (As it should be since the cost of representation is a part of the cost of the purchase). Otherwise, they are taking what they have to pay the Buyer's Agent off of the purchase price! I have many times listed homes that were listed with a discount brokerages first and the Seller had an expensive way to learn that a Realtor® does bring value when I get their home sold!
On average, having a Licensed, Experienced Professional Realtor® working as your Seller's Agent gets you 10% more for your house. That increase not only pays all commissions, BUT should cover closing costs and lawyers fees.
We've all heard about the guy that sold it himself and pocketed the commission amount. Did they really? Did they tell you that they had to install a brand new septic at their expense to close the deal? (I would DEFINITELY renegotiate that as I don't feel that the Buyer should have the right to worry free living for 25+ years - so, maybe we would increase the purchase price by 10 or 15k to offset the 20-30k for the new septic - this savings to the Seller would pay for the most of the commission alone)! Maybe that Seller had to pay to re-roof the house before closing. Did the Buyer pay any portion of that? Maybe the Seller could have gotten more for their home if it had of been marketed more. Maybe they were underpriced or Joe Blow down the street has always wanted their house and missed out. The first person that comes through may not have been the best. Maybe an Experienced Realtor® could have drummed up multiple offers for the home.
So, back to my original question:
What would you do if someone asked you to work for less than half of what you would normally get paid? Would you? If the answer is 'NO', then you now understand why my answer is 'NO' too!
I have worked really hard to get where I am. I have and still continue to strive to do my best for my clients. I EARN every nickle I make and I am a Licensed Realtor® not a Salesperson. I don't Sell Houses. I provide a service to people, I market homes, I draw up legal documents, I am often counsellor and confidant, I get the best price for my Sellers', I protect their better interests and I help my Buyers' get the perfect home at the right price and keep them out of the Money Pits!
I make the process seem easy.
That is what a 'Professional that is good at what they do' does! In order to get my license and keep my license, I have taken extensive courses (and continue to take more), I work hard and am meticulous with all of my deals.
I am a proud Award Winning Licensed Realtor® and I EARN my INCOME!
So, call me when you're ready to Buy, Sell, Lease or Rent and Pass on my name if you want to help out a friend!
I am never too busy for referrals and I can help ANYWHERE in the WORLD!