When you hire a real estate agent and agree to a fixed commission figure based on what they promised you at a listing presentation, it’s the same thing.
One of the reasons agents are seen as non-trustworthy is most will agree to whatever a Seller wants at a listing presentation just to get the listing. (This is especially true for the price) The agent then comes back at the Seller with the old stand by “You need to lower it”. That’s a great strategy for an agent and a nightmare for you. Here’s why:
Say the agent took your listing at 500k with a 6% commission rate (figuring the agent offers half of that to the buyers agent, so they are keeping 3% or $15k total). Now, when they call you and tell you need to lower your list price 50k, you just lost 50k! But the agent only lost 3% of 50k or $1500. That’s a pretty easy phone call for that agent to make, what do they care you agreed to it upfront.
Not with us, Introducing, our “Smart Commission Plan”.
With our Smart Commission Plan.…. Our Commission percentage is based on the ultimate SALES price of your home, NOT the List price.
This model makes us true partners in the sale of your home. We are NOT a discount brokerage. We simply believe you should pay for results, not promises made at a listing presentation.
I want you to compensate us the same way a hedge fund would pay a top trader. The more money they bring the firm, the higher percentage of it they get to keep. Paying us the same way incentivizes us to do everything possible to get the highest possible price.
It also protects you from catastrophe. Should your neighbors decide to sell their home for 10% below market value and it tanks the value of your home. We would take the loss together. For example if the scenario above was us, and all things were equal (500k listing now needing to be reduced to 450k,) where the other agent was losing $1500 this might cost us $9000. As you can see, that’s a much tougher call for us to make. Simply put, we put our money where our mouth is in a way no one else does. We truly are in it together when it comes to the sale of your home.
Q: Does this mean you are discount listing agent?
A: Absolutely not. Discount brokers that offer to list at cut-rate percentages can’t afford to spend any money marketing. We spend more than anyone on our listings and our lower days on market and higher price per sold sq. ft. amount don’t lie. Again we have to get you top dollar or we may actually LOSE money on your transaction. Besides if the only way they can sell themselves is they are cheap, how is their great plan for selling your home going to look?