Lets Talk ... Commission and Highest Price Range
COMMISSION
While it might be tempting to choose a real estate agent solely based on their commission rate, there are several reasons why this may not be the best approach:
• Limited Services: Agents who offer lower commission rates may cut corners on services to make up for the reduced income. This could mean fewer marketing efforts, less time spent on your listing, or less attention to detail during negotiations.
• Experience and Expertise: Highly experienced and successful agents often command higher commission rates because of the value they bring to the table. A deeper understanding of the market, better negotiation skills, and a larger network of potential buyers and service providers to assist in the sales process.
• Negotiation Power: A skilled agent can often negotiate a higher selling price for your property, which could more than offset the difference in commission rates. Experienced and knowledgeable in negotiating favourable terms and conditions which may also off set the differences.
• Quality of Marketing: Effective marketing is crucial for selling a property quickly and at the best price. The cheaper companies usually offer the lower end of the photography choices, online marketing techniques and seldom promote by way of social platforms.
• Time and Attention: Real estate transactions can be complex and time-consuming. Agents who offer lower commission rates may be handling a higher volume of clients to compensate for the lower income per transaction, which could result in less personalised attention and slower response times to both buyers and sellers.
• Long-Term Value: While saving money on commission upfront might seem appealing, it’s essential to consider the long-term value that a skilled agent can provide. A successful transaction can have a significant impact on your financial well-being, making it worth investing in a reputable and experienced agent.
OVER PRICING AN APPRAISAL RANGE
Some agents will inflate the value of a property appraisal just to get an owner to sign with them, once an owner is locked in for 90 days, they will then use the 90 days to tell you why the price of your home is not worth what they originally promised.
Personally, when I appraise properties I do tend to be conservative and offer genuine price guides to assist in making informed future decisions. On occasion, I have seen a property I have appraised list with another company for much higher than my appraisal range only to be chopping and changing the price and then selling for under the bottom of my range. Majority of my properties will sell for around or above the appraisal ranges I provide.