Trying to save on commission? Think again…
What is your commission? This is probably the most common question directed at Realtors during the listing interview. Although it seems quite reasonable at first, when you dig deeper into the subject, you’ll realize that it’s not the commission rate that matters but rather the net amount you collect at the closing.
Consumers, including home owners, are always looking for ways to save money. In this case though, they mistakably make the assumption that their home’s market value is set, and paying higher commission to one agent will automatically affect their bottom line in a negative way. This is not necessary the case. Houses do not have sticker prices like cars. The final sale price is dependent on numerous factors, like: initial pricing, property preparation, availability for showings, marketing exposure, negotiation skills, communication between parties, etc. Whoever oversees the selling process can have a huge negative or positive impact on the final price.That could amount to tens of thousands of dollars or several percent of the sale price. The commission is the payment for the service but the quality of this service will influence your bottom line more that the commission rate itself. Let’s see how this scenario might apply to By Owners, Discount Brokers and Average and Top Service Brokers.
BY OWNERSThe idea of selling your home By Owner and not having to pay the commission to the real estate broker might at first seem to be extremely tempting. But you could be heading for a huge surprise. Can you really handle this complicated process just by yourself? Do you have enough time, knowledge, skills and resources? Are you capable to face all the headaches, frustrations, liabilities and at the same time secure the best possible outcome? Well, if you have great sales and marketing background, you could give it a try. But for most home owners it will be a very challenging experience.
Statistics show that properties listed with a Realtor on the average sell for 8%-10% more than those handled by owners. There is your commission right there and some extra profit. Sooner or later most by owners give up and end up listing with a Realtor anyway. Those who manage to make a sale do not even realize that they could have squeezed much more out of the deal with the help of the right professional.
DISCOUNT BROKERSFor some home sellers that might be a very tempting proposition. But think about it for a second. Why would any brokers give up a big chunk of their income? Well, that might be the only way they know to compete with better agents. They usually have nothing else to offer but commission break. The bigger discount you get the less service you receive, up to the point that your listing is only put into the MLS and you do the rest. Such brokers usually go after the sellers who are strictly commission oriented and who do not realize the negative impact this choice might have on the final sale. But again, it is your property and it is your choice how you want to handle the sale.
AVERAGE AND TOP SERVICE BROKERSBy owners and discount brokers affect a relatively small percentage of the real estate industry sales. The majority of transactions are handled by brokers who represent a wide spectrum of personalities, experience, skills and commission rates. Some are worth every penny they get and some do not deserve a dime. Most of them though have good intentions and they try their best.
OUR SERVICE FEES
We have introduced quite a different approach to the commission rates. Actually, we call them SERVICE FEES. And they vary depending on the marketing exposure you desire for your property. We have several different plans that match the needs and expectations of most Chicagoland home sellers. Regardless of the plan, we offer superior service and unmatched experience for the seller through the whole selling process and outstanding results at the end. PLEASE CONTACT ME FOR MORE DETAILS.