This is both a common and unfortunate mistake, though I do understand why people make it regularly. For starters, we all want to save money. Also, I think that the Real Estate industry in general has done a pretty poor job of communicating what it is we do for clients. As a result, often sellers are left with the impression that all REALTORs do basically the same thing. If that were true, it really would come down to price.
But it’s not true - far from it! REALTORs are free to be competitive in the marketplace, and to create and package their own unique suite of services. Some do more, some do less. Some charge more, some charge less. But get this: Some do less and still charge more. Some do more and manage to charge less.
So, with all this variety, how in the world can one select a REALTOR? It can’t be just about price, and let me explain why that is.
Let’s assume that a REALTOR offers to sell your home for a very low commission, but is offering only the “bare minimum” of services. The reality is that there are two things that you can control that will determine the sale price of your home: Pricing and marketing! That’s it! The house has to be priced right, and you need to get people to see it.
When it comes to marketing, this job lands squarely on the shoulders of the REALTOR. And, in general, the more people that see your property (assuming it’s priced reasonably), the more interest you’ll have. Basic laws of supply and demand dictate that the more interest in a property, the more it will ultimately sell for.
These truths stand up regardless of the type of market you’re in.
So now we’re back to the low commission “discounters”. The question is, how much extra interest and activity will additional marketing bring? Let’s say that one REALTOR offers to sell your home for a lower commission that will amount to, say, $3000 in less commissions paid on a $300,000 home (1% lower). If you can get even 1.5% more for your home because of a more aggressive marketing strategy, you’d be foolish to save money on commissions and accept a half-hearted marketing plan.
And yet, consumers make this decision every day.
Now please understand me when I say this: This does not mean that you should simply hire the Agent that charges the most.The reality is you need to have a clear understanding and thoroughly evaluate the marketing plan before you make a decision to sign