Let's be frank. There are a lot of real estate agents and not very many homes to sell. While it is true that in every market, we often find ourselves competing with other agents for listings to sell. In tight markets, the competition is often fierce and cutthroat. Agents will try to buy business by reducing their commission and promising the sellers they can get ridiculous prices for their homes. Unfortunately, many homeowners fall victim to these sales tactics. The home doesn't sell until sellers have reduced their asking price and because "time reduces value" sellers almost always end up closing for a lower net than they would have achieved had they at the start correctly priced their home and offered competitive compensation. (another example of the saying, "Penny-wise & Pound-foolish")
Most real estate agents have a tough time demonstrating their value. They are unable to identify unique and compelling reasons sellers should list with them. Agents then become a commodity and when that occurs, the "winner" is the one who offers the lowest commission/highest listing price.
Isn't it funny that banks have no problem paying 6% in sales commission on their properties (short sales and reo's) yet homeowners (who price their home at higher asking prices) think they are saving money by paying out lower commissions? When we value properties at noncompetitive prices and market them with low compensation rates; we are failing in our fiduciary duty to our clients: the sellers!
The best agents list homes at the highest market value and at a commission that will help them achieve that price. The best agents won't take overpriced listings at unprofitable levels of compensation and they will "win the listing" even when other agents offer to sell the house at a higher price with a lower commission.
How do they do that? Want to learn more? Wait for our next blog or better yet, find out how our agents have mastered the art of benefit selling!
Most real estate agents have a tough time demonstrating their value. They are unable to identify unique and compelling reasons sellers should list with them. Agents then become a commodity and when that occurs, the "winner" is the one who offers the lowest commission/highest listing price.
Isn't it funny that banks have no problem paying 6% in sales commission on their properties (short sales and reo's) yet homeowners (who price their home at higher asking prices) think they are saving money by paying out lower commissions? When we value properties at noncompetitive prices and market them with low compensation rates; we are failing in our fiduciary duty to our clients: the sellers!
The best agents list homes at the highest market value and at a commission that will help them achieve that price. The best agents won't take overpriced listings at unprofitable levels of compensation and they will "win the listing" even when other agents offer to sell the house at a higher price with a lower commission.
How do they do that? Want to learn more? Wait for our next blog or better yet, find out how our agents have mastered the art of benefit selling!
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