Get What You Pay For
That includes real estate agents and commissions
I love that the full-priced agents working at usually large companies continue to use the argument that your get what you pay for.
Am I and licensed agents like me scaring them?
My thing is that you are getting what you over pay for with a full priced agent. Why should you pay a person that graduated high school, took a few hours of classes and passed a test as much as a PHD in Engineering. It’s not right.
Times have changed. I’ve changed with them. The big companies can’t afford to. Imagine you have basing the future earnings of your company on a long used model and now, the low cost alternatives are matching or exceeding your service and performance and now they charge a lot less. Steel and other manufacturing businesses come to mind? Now, it’s real estate.
They can’t compete with the lower gross commissions in the market while paying the agent a significant chunk and trying to maintain staff and operational dollar models.
It is easy to get an experienced agent to do a fabulous job, protect your property, market it to the buyers who really want this home and do it at a reasonable price.
And another thing. You pay the same rate with most every agent in every big office. So, the rookie that knows nothing and the person that exceeds at service, ethics and knowledge charge the same gross amount? They get different splits but shouldn’t you get the benefit of the knowledge tree?
Or, just use someone that you relate to, will be happy to give you the rebate because the seller is giving too much money back and has the knowledge to get the deal done? :)
Here’s the bad news about having a brokerage that charges less: prices may come down a little bit or not rise as fast because not as much money has to be added to the price to get the big commission paid. So, the local real estate tax authority take in ever so little per year. Those municipalities with transfer taxes would take in a few bucks less.