A few days ago I wrote a post, I Know It's Going to Hurt, But What You Want or Need from the Sale of Your Home Doesn't Matter, which discussed pricing your house based on current market conditions and comparable homes, not on what you want or need to walk away with.
It seems that a comment I'm hearing more and more these days, too, is a sort of disgust over the "realtor fees" that will be paid. I think I prefer to believe that most consumers simply don't know or understand how the commission is paid (i.e., only if we close) and what that fee pays for. I know before I got into the business I thought the agent got "all of that." But that's just not the case.
That fee pays for, among other things:
- MARKETING/ADVERTISING
- CLOSING DEPARTMENT PERSONNEL
- ACCOUNTING DEPARTMENT PERSONNEL
- PROFESSIONAL PHOTOGRAPHER
- SHOREWEST TV EXPOSURE
- ONLINE GUIDED TOUR
- 24-HOUR HOTLINE
- OFFICE SUPPORT STAFF
- SALES DIRECTOR
- SELLING AGENT
- SELLING BROKER
- LISTING AGENT
- LISTING BROKER
Several months ago I wrote another post, So What Do Realtors Do All Day, to help shed some light on the time each of us invests into each of our listings and the expenses we incur. It isn't intended to muster up some sympathy for the time and energy that's exerted to get a house sold; it's intended to help the general consumer understand that "that realtor fee" is, quite frankly, money well spent.
But just as what a house is listed for should not be based on what you "need or want" to net, neither should it be padded to cover what will be paid in commission.
I know this market is frustrating, and whether you admit it or not, humbling. But without the dedication and work of a professional Realtor(R) and all the people "behind the scenes," the process would be even more frustrating.
When you look at the overall picture, you'll see it is money well spent.
So correct! Once in a while we get 'negotiatiors' who say 'We'll list it for X if your commission is Y' - one has no relationship to the other.
Great information...I think that a lot of sellers have to be educated...they just don't understand....you spelled it out!
Candice -- Yep -- I hear that one, too. Most recently I heard, "Well, we'll lower the price if you lower your commission." Sorry, just doesn't work that way.
Deborah -- I agree -- I really do think it's an overall misunderstanding. The trick is how do we effectively "get the word out?"
I do find that many sellers do not blink an eye at paying the commission. They want to sell their home and not be bothered with all the work. Great post to help someone understand that it is not as easy as it looks.
Cal
Cal -- I have to agree that for the most part, the sellers I work with don't "fight" the commission. But those that do...wow. I hope this helps the general public understand a little better what we do.Thank you for stopping by!
Peggy, I think the amount of the fee paid is less important to our clients than what we do to earn it!
Patricia -- I think most of the time they just see that number and don't consider what we (and others) do to earn it.
Excellent post Peggy!!! and excellent comments... we face the same comments being a banker... you get what you pay for... you have the right idea
Rick