The BIGGEST Mistake You Can Make When Selling Your Home!
Can you reduce your commission?? Somewhere in our lives we were taught to always ask for a discount…and if it’s a commodity, like a piece of fruit or a car, that’s ok, you may not be loosing much. There’s a discernable difference if it entails someone who has, say, your life in their hands…such as a Doctor, or, sometimes, an Attorney…would you want the cheapest of either of those? Me either, I want the best!
Well Realtors are not doctors and they are not saving your life (or limbs) ; however; they are liquidating the most valuable asset (for most people) you own, or ever will own, for that matter. Financial Surgery, if you will.
Now, there are three critical roles a Professional Realtor play’s. First they are to be your consultant. Second they are your negotiator and third, they are the overseer of the transactional details. If you meet with a Realtor and are not hearing these things then maybe you are dealing with a “commodity” and may be justified in paying a lower commission.
However; when you are partnering with a high level professional Realtor, and you will know when you are, you will quickly realize they are not a commodity and are worth every dollar you pay them……usually, just for their negotiating skills alone!
Here’s an example (and I’ll use numbers from The National Association of Realtors, not one’s I made up:))
We are told by NAR that for every 1% you shave off the agents commission you should expect to receive around 2.5% less for your house and have it sit on the market for an additional 30 days…..So, here’s how it shakes out: If it’s a $250,000 house (that’s average here in New Castle County, Delaware) and you partner with a FULL SERVICE Professional Realtor, investing 6%, you should NET around $237,500 (that number only includes the Realtor Commission, not closing costs, taxes, etc)
If, instead, you work with a Realtor who settles for a 5% commission you should expect to net around $231,250 and it’ll be on the market an extra 30 days …..that’s $6,350 less……AND you need to make another mortgage payment (because of the extra 30 days it sits on the market)!!!!!
WHATS MORE IMPORTANT: THE COMMISSION….OR THE AMOUNT OF MONEY YOU PUT IN YOUR POCKET??????
That 1% you “saved” was $2,687.50 and it cost you $6,350 in the sale of your house….That’s $3,662.50 you lost!!!!!!! (Or, if your the savvy seller you Invested the 6% and you made $3,662.50 more!)
So, should you ask for a reduction in their commission??? ABSOLUTELY…and here’s why, let them weed themselves out. Listen to their response….if their quick to lower their commission a RED FLAG should go up…..and you should be thinking “what will they do with the price of MY home when tough negotiations show up??” (and they WILL show up, especially in a buyer’s market, like we’re in now)
Don’t make this mistake…….