DISCOUNT COMMISSIONS CAN COST YOU MONEY! Please read on. Some seller's have a tendency to view the real estate Service Fees as a cost rather than a benefit. If the criteria for calling a realtor is a cut-rate commission to save money, you could be setting yourself up for a fall as this seller almost did. Real estate is no different than any other professional service, you get what you pay for.
The lower the commission, the less incentive an agent has to work with the enthusiasm of a full service agent earning a full commission handling the challenges that so often accompany a real estate sale.
Most agents will avoid showing the property in favor of other properties paying full commission. Sadly, a lot of potential buyers may never see the property to the seller's disadvantage. As in the case above, the money the seller was initially trying to save by paying a discounted commission was more than lost in a lower selling price; 30% lower to be exact.
However this story has a happy ending! The sale made by the discount realtor fell through and the listing expired. I was asked to list the property offering the Seller, Century 21's full services package with full commissions offered to the real estate industry. We received multiple offers and sold the property for a whopping 30% higher price tag, putting more than $64,000 in the seller's pocket after full commissions paid.
You only get what you pay for, especially when it comes to professional services. A full service Realtor worth his salt will not only protect his/her commission, but has the incentive to protect your bottom line.