Home sellers sometimes make the big mistake of choosing a real estate agent based on who offers the highest listing price and the lowest commission percentage. Of course, a seller wants the most equity out of the sale, but the trouble is that if you want to sell fast, the competency of the agent you hire is not the only primary consideration.
The danger of always aiming for the highest listing price
It is not true that a real estate agent cannot show a realistic estimate of how much your home will sell for. Experienced agents have access to tools, not to mention extensive market knowledge to show you how your home compares with other properties in your area, the status of pending listings, and historical data about closed transactions. With the help of your agent, you can choose a sale price which gives potential buyers room to negotiate. To get the right listing price with the help of your agent, consider the following:
- When hiring a real estate agent, do not simply state “I want to sell my house fast.”There’s more to it than that. An agent should be able to provide supporting data for the suggested listing price you are offered.
- A good realtor gives home sellers a range of listing prices to choose from.
Choosing the right listing price is one thing you cannot compromise on. Only the best realtors understand how critical it is to the sales process; hence, it should be a consideration in selecting a realtor to partner with.
How does an agent’s commission affect your choice?
Real estate commissions vary from one location to another. Some agents that have a lot of resources at their disposal have a bigger budget to market your house, and also have access to a larger pool of potential buyers. But if you want the best, then you also need to pay a higher commission. Nevertheless, there are some instances when an agent will be willing to discount their commission. Some of these situations include:
- You are both a seller and a buyer. That means you are giving the agent two transactions; hence, the agent may be willing to provide a discount.
- You are only hiring the agent to deal with the sale, but you will handle everything else, including advertising and marketing.
- In exchange for a discount, you are going to refer new clients to the agent.
- The agent does not want to lose the listing to a competitor
In the process of interviewing agents with similar credentials and services, ask for at least a copy of their track record. Check for signs such as how long it took the agent to sell the house and the percentage price reduction from the listing price. With this in mind, you need to compare if a lower commission affects the performance of the agent. If you are paying a realtor 1% higher in commission, but the track record shows an excellent capability to sell closer to the listing price, and at a faster turnaround, then it is worth the investment.
I am a blogger, marketing expert, student of the market and a visionary.