Posted on June 14, 2012 by Eric Putoto
Well isn’t that swell….the question one needs to ask themselves is: “Why did that Agent or Brokerage cut their commission?”
The ego is an interesting creature is it not? You see, we all love getting deals and when we feel like we made someone give us a better bargain, and/or we are offered a better deal, we immediately feel significant and special.
When it comes to selling your home you really should keep your eye on the prize. The first goal is to get your home sold. Just as important as getting it sold is to get it sold for top dollar. Whenever I hear someone going on about how their last agent did them such a good turn by discounting their commission, my first question is “tell me about the result.” You see a $2000.00 commission discount on the sale of $350,000 to $500,000 home is much less than 1% of the transaction. In another words, what really matters is the end result. That result is 100% of the time dictated by the process … and the process is made up of the strategies, systems and expertise that go into coordinating the 70 to 80 variables involved in the “home selling process.”
I can assure you cutting commissions are not part of that process; in fact cutting commission is nothing more than an unequivocal statement by the Agent or Discount Brokerage that they do not have strategies, systems and knowledge to offer you … so they are discounting for services they know they cannot provide you!
Remember this statement I heard some time ago from an international business speaker and author; “In the absence of any real and tangible value, fee for service becomes the commodity.” Another way to state that is “you get what you pay for”. If an agent or brokerage agrees to discount, or outright offers discounted commissions, you now have a better understanding as to why.
Real Estate is not a fixed priced commodity and it too is governed by the principle of price elasticity; meaning that ”how” you go about the sales process and “who” you have managing it, has as much to do with the outcome of the sale as the intrinsic value of the product, in this case your home. This is why very similar homes on the same street can sell for very different amounts. The agent and their skill set make all the difference!
So the next time you think you saved money (as the discount brokerages and many agents would have you believe, by giving a large commission discount) you may want to reassess the outcome. There is a very high probability that you have just left 5 to 15% of the value of your home on the table. I can assure you that far exceeds the entire commission you would be charged by any true real estate professional. Just because a person has managed to pass the test to get a license to sell properties does not make them a true professional real estate agent!
When you are ready to sell your Kamloops home or relocate to the area, call me, Eric Putoto! Cash Back! Or Pay It Forward! Refer a friend, colleague or family member in 2012 … and have them benefit from the Maximum Value Home Selling or Maximum Choice Home Buying System by selling or buying their next home with me, Eric Putoto, the first Exclusive Licensed Realtor in Canada of the MaxAvenue Home Selling & Buying Systems, and you will receive $250.00 in cash or have me Pay it Forward to your favorite charity in your name! It’s a win-win for everyone! You get to decide what you would like to do with your $250.00 and the individual you refer me gets the best real estate experience possible!