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Selecting a “cheaper” agent
There is always the age old question: “When I list my property, what advantage do I have not going with the cheapest commission – cheapest agent?” “I can save a lot of money by paying a lower commission.”
True?
First of all, let me mention that realtors all are paid exclusively by commission. So the commission is not only their “bread and butter”, but also has to pay for the ongoing costs like their brokerage split, office fees, insurance, advertising, car and gas, phone, continuing education and a lot more.
Well, let’s have a closer look at what an agent can do for you:
Of course the agent first of all lists your property on the local board and the MLS. Puts up the For Sale sign and waits for an offer to come in, then negotiates the offer and collects. Right that’s all an agent does and then collects a hefty fee?
Yes of course this is what you might get when you bargain for the lowest commission or ask a discount broker. Oh, sorry a discount broker might not even provide all those essentials.
Now what other services do you want and get from a “non basic realtor”? Well, this is individual from agent to agent and will vary. So let’s look at some additional things which I do for my clients:
First of all, I start already before listing a property with a thorough property evaluation. To ensure that my pricing suggestion is as accurate as it can be I don’t just do one comparison, but two or if required three. Then I go through the property, point things out which I think need attention and make suggestions. Once the price and the listing, sales process and documents are discussed we discuss the commissions. I have different options I can offer to my clients, depending on their individual needs and wants. Here of course the negotiation starts already. Even though I have a little bit of flexibility in what I offer and what my commission rate is, I stay fairly firm on what I will accept and what not. You might be disappointed not to get the “cheapest deal”, but the cheapest deal doesn’t mean you don’t get the “best deal”. Imagine an agent who gives in with his commission “his bread and butter” easily. How do you think this agent will represent you and your interest in the negotiation of your property?
Now we agreed on all the details and commission and we list the property. I take or arrange pictures and or videos to be taken, sign and lockbox to be put on and so forth. Here is where the journey and the work for me begins. What does make a property sell? The MLS? Sure it gives a certain amount of exposure, but is it enough? In some cases it might be, in a lot of cases certainly it is not. My next step is to make it known to the world that your property is for sale. First of all, even before your listing hits the local real estate board and MLS your listing is announced to the largest, most productive brokerage and all their almost 450 agents, RE/MAX Twin City Realty Inc.. Then the local board system, MLS, my personal realtor database from within and outside of the area which is approximately 1,300 realtors, my personal client, prospect, networking, friend, acquaintances, database, my monthly newsletter mailing list, direct newsletter distribution areas, my personal web-page, RE/MAX Twin City Realty Inc. web-page, RE/MAX Canada and international web-page, some other agents’ web-pages, a minimum of 10 web based advertisement sites, print media, networking events, direct contacts, flyers, social media – Facebook, Twitter, Linkedin, YouTube, WordPress, Blogspot and others -, open houses, neighborhood marketing and a lot more. Do you think this marketing effort makes a difference? Certainly it does, and most importantly with all this exposure and the right pricing chances of a faster sale are extremely high. A faster sale means as well, that the price you can achieve for your property is maximized, which means you end up getting more money for your property. Therefore your main interest is protected and achieved.
The next step is organizing and monitoring the showings. I advice my clients on how to prepare themselves and their property for the showings, will arrange the showings and will request feed back from each showing, so that we can discuss any issues, objections and other feedback.
Once an offer comes in, I receive the offer on behalf of my clients, discuss it with them, discuss the options and negotiate on their behalf, to ensure we get the best, most suitable deal. Once this is done, the home inspection has to be arranged and monitored as well as getting the according feedback. Furthermore the fulfillment of the conditions need to be monitored, the deposit has to be accepted and held in trust, and potential re-negotiation of potential arising issues. During that time I act as well as the intermediary between my clients, their mortgage company, their lawyer and if applicable the condo corporation.
Finally I assist my clients to prepare for the closing and the move, assist with recommending services, professionals and other services needed and assist in finding my clients finding their next home.
This list of course is not exhausted, but an example what you will receive as services from me in oppose to a discount broker. Services may vary depending on needs and individual clients and property.
Now, you judge if it is worth wile to try to skim on the commission and go to a discount broker.
Please contact me at any time to discuss your home or commercial buying, selling lease needs. I am always happy to discuss and assist.
Thilo Biedermann, B.Sc.
Sales Representative
RE/MAX Twin City Realty Inc.
519-579-4110
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