The Real Value Behind a Real Estate Commission
I recently spoke with a homeowner interested in selling his small, three-bedroom, one-bath home — just over 1,000 square feet — in a desirable shoreline neighborhood. His first question to me was, “Will you reduce your commission?” I replied that we could discuss commission once he was ready to meet in person, so I could view his home and provide a proper market analysis. I also explained that commission is a key element of any effective marketing strategy — it directly impacts the visibility and desirability of a property and that would be evident when I provided him with a marketing plan tailored specifically for his home. Apparently, he didn’t like that answer. Instead of scheduling a meeting with me, he chose to meet with other agents, shopping around for the lowest commission. Eventually, he found someone who agreed to a discount and let me know he no longer needed my services. Based on the value of his home I estimate he may be saving $2,500 to $5,000. But is he really saving? Hi...