The question of the day coming from most in my real estate circles and in my advisory groups is the following, “Can you lower your commission, it seems really high?”
Some facts, before I answer the question.
- Homes sold by Realtors get more net profit, even when paying a full commission, than homes sold by the owners themselves.
- For sale by owner, properties take on average 19 more days to sell.
There are several other “reasons” why you want to hire my services, but these are two of the biggies.
Of course, everything is negotiable. If I’m willing to waiver on my own paycheck, how well would I be able to stand up for you when it comes to selling your home? Will give in or buckle when pressed by the buyer’s agent?
BTW, if you think that I’m clearing(making) the whole amount of commission, think again. There is the Office – I have to pay them, There is REMAX – I have to pay them, there is the Board of Realtors, the California Association of Realtors, the National Association of Realtors, there is the Government (taxes) and other fee’s I have to pay to be an independent business owner involved in each transaction. A 100% commission would be nice, but it’s not how things are done in real estate.
For the exposure of your home within all of the channels I pay for and have earned since 1998, there are fee’s for that as well that come as part of my commission.
Also, I don’t get paid until your home sells. That is not up for negotiation. That is how real estate works.
One thing that we want to consider is cutting the buyer’s agent’s commission. It’s a bad idea. I have it from personal experience that the home won’t be shown as often if we go below the market commission rate with the potential other agents, who are showing your home.
Then there is my commission. My paycheck. Out of my commission, I’m investing up front in the sale of your home. I’m paying for internet exposure and professional photography. Those upfront fees equate to 1% of my commission. I’m paying for placement and advertising on over 50 syndication channels. I’m also paying for mailers and other necessary marketing items to pitch your home in the “unconventional channels”.
If the buyer’s agent commission rate is 2.5%, as a rule, then I’m worth over 3%.
It comes down to aggressive action on behalf of my top producing real estate team and I. How many channels we have access to and how well we perform when we get those multiple offers in having the home buyer perform throughout the transaction.
My dad used to say we were too poor to buy cheap things. I remember that well when he bought a small tool set from a mail-order catalog. The wrenches were able to be bent in half by hand. That is when he made that statement. He stated he knew it was too good to be true, apparently, he did not go with his gut!
At the end of the day, I want our real estate clients to be happy. Our reviews on the real estate syndication site Zillow and those on Yelp are a true testament to how our clients have a 5 Star raring for us and our real estate business. I’m well worth it, let me show you!
Be safe – when you are ready to interview for your real estate needs, reach out to me as soon as you are ready. I’m Connor MacIvor with REMAX of Valencia and Santa Clarita. I’m here for you, be safe.