How to Justify Paying a Realtor Commission
Updated: Jun 15, 2018
With the market the way it is today, and things selling CRAZY fast, how can you justify giving your Realtor 6% commission???
That is something that is very hard to justify now. Sure, normally the listing agent will meet with you, take measurements, and assess your homes value. Then, you go into contract, take photos, advertise and then you're ready to go.
Its basically take a few photos and then list on the MLS....or is it?? Sure, it seems like we don't do much to earn that commission but there's a bit more to it than people think.
The big part of how we earn our commission is from our time invested and with other agents. That is honestly what it is. Some agents are just down right difficult to work with. Sorry but it's true. We as agents don't want you as the buyer or seller to worry about the little behind the scenes issues that ALWAYS seem to come up, so we do it all to try to make things less stressful for you.
Especially true with the buyer. They are already most likely under stress from dealing with all the other parties involved... lenders come to mind right away... no offense to them of course, there can be a lot needed to qualify to buy a house. I will tackle that one in another post :)
Anyways, we are daily talking to other agents, lenders, title companies, appraisers and even occasionally contractors. There are a bunch of different people who all have to work together to ensure you have as simple of a home buying or selling process possible.
Another HUGE chunk of that is actually split with the other agent. The other agent that finds a buyer for your home. Not many people realize that to buy a home, our service is essentially free to you. We get paid from the listing side of the deal. What that means is that if you don't find a house, we don't get paid. Always. We don't make money hosting Open Houses. We don't make money showing people homes. We make our money for our time invested, which really can take a while in some cases. We make what seems like a lot for not doing much, but it simply isn't true. Some buyers literally look for YEARS to find that perfect home or cabin. That means that some of us invest YEARS with our clients before we see our paycheck.
I am more than just the sale, more than just the person to get your house listed on the MLS. I am here for YOU and ready to help. Help with questions, negotiation, help to find contractors and to help with anything I can.
Its the relationships that I build that helps to build my business. A business I am truly eager to expand.
One more thing that I want to educate you with before I let you go... all of us agents are different. Some of us might ask for a flat fee to list your house. Some of us might ask for a percentage to list your house. Some of us will even ask for both. (ex. $6000 or 6% whichever is greater) It is important that you ask and understand what the fees are for. And I know most agents wont agree to this, but we are in the business of negotiation. It never hurts to try and negotiate with the agent before you list. Just a helpful hint, because I truly do not want you to feel like you are getting an unfair deal.
Having the right agent for you is beneficial though. As an agent, it is MY JOB to have your best interest in mind. I don't want to sell your house for less than it is worth, I don't want you to buy a house you don't love. I want you to be happy. It is important that you find the right agent for you, not one that is in it just for the money, but there for YOU as well.
I pride myself in Educating my clients on the process and encourage questions. If I am not explaining something or you don't understand something, feel free to ask, that's all. I am here to help.
Thank you again for reading today's post, and don't forget to subscribe to my blogs and check out my Facebook page!
Also, if you have any questions or are interested in Listing your home for sale now, feel free to send me an email, firstname.lastname@example.org