Ultimately, you get what you pay for.5/8/2018
Can you save money by paying less in commission?
How Agent make their commission.
Reluctant to fork over the 6% commission that real estate agents typically request to sell your home? Sure, that may seem like a lot of money, but what you might not realize is just how much work an agent does behind the scenes.
A lot of people don't understand that an agent's job is more than just listing the home on the multiple listing service (MLS) and sticking a yard sign in the yard, the commissions pay for the agents’ time, marketing materials, things like; postcards, flyers, broker open houses, and yard signs all come from the money you pay your agent.
But beyond that, "it gives your agent the power to offer money to other agents who have qualified buyers. That's because the buyer's agent and the seller's agent split the commission.
Though in an ideal world, buyers' agents would show them every property in their price range, regardless of commission, unfortunately it doesn't always work that way.
"So, if there are a lot of properties on the market and you're only offering 2% commission, there are agents won't show your property. Ultimately, you get what you pay for, and a higher commission can often justify itself in the sense that you can reel in tons of buyers, and (hopefully) spark a bidding war that'll fetch top dollar.
'Price your home high—and hold out for a buyer who'll pay it'
Of course, you want to get the most you can for your property. Still, pricing it sky-high and hoping a gullible buyer will fall for this aspirational sum? Not a great plan.
"I want to sell your property for a million dollars too, but I would be doing you a disservice to price it that way if the comps are saying $500,000," Home buyers are highly sensitive to overpaying, and will quickly steer clear. And the longer your house sits on the market, the more buyers will begin to think something's wrong with it ... and toss you a lowball offer.
The best way to avoid this waste of time is to price a house right from the start—not too high, not too low—and then seriously consider any offers that roll in, even if they aren't as great as you'd hoped. Have your agent start things off with a competitive market analysis to get a ballpark figure of how much your home is worth, then fine-tune that number with your agent's help.
'Here's what the market is going to look like next year...'
Sure, it makes sense that real estate professionals will make educated guesses to help guide their buyers' and sellers' decision-making. The operative word here is "educated." Fact is, nobody really knows what the market is going to do; if they did, the housing crash of 2008 would have looked a lot different!