For Sellers: (Buyers click here)
The Listing Agent is the person you hire to sell your home. The Selling Agent (the agent who is representing the Buyer – more commonly known as the Buyer’s Agent) finds your home and brings their client to see it. The sales commission (how we get paid) is then split between the listing agent and the buyer’s agent.
What no other listing agent will tell you is that over 90% of the time, it will be another real estate agent that actually “brings the buyer to the table” and consummates the sale of your home. It doesn’t matter if it is the biggest named agent with the biggest named company, it will almost always be another agent that actually makes the deal happen.
So why pay a high commission fee to the listing agent, since the buyer’s agent is the one bringing the buyer?
Many agents will use their marketing strategies to justify their high commissions.
“Look at our great marketing plan!”
“We get you results to get your home sold fast!”
“We spend thousands on advertising!”
“OUR Listings Sell!”
Don’t Buy It!!!
Before you pay a 6% listing commission that’s based upon a marketing plan of newspapers and home guides we suggest you consider the following:
Every year The National Association of Realtors® (NAR) publishes a report called the “Profile of Home Buyer’s and Seller’s Report”. This report is generated from a six-page questionnaire that is mailed to a national sample of 100,000 recent homebuyers and sellers who purchased and/or sold their homes within a given time frame. According to this NAR report, only 5% of all homebuyers actually purchased a home they found in a newspaper ad. Only 5%! The NAR report also reveals that only 1% of homebuyers actually purchased a home they found in a home guide/magazine. Only 1%! Even a simple yard sign is 3 times more effective in selling your home than Newspaper and Home Guide Print Ads combined!
The main reason that real estate companies and agents run ads of homes for sale is to attract home sellers, not home buyers. Listings are the “bread & butter” of any real estate company, and advertising in print media is just an attempt to market to potential sellers and for self-motivated name recognition. Next time you look at a print media advertisement for a real estate agent, look to see what they are actually selling. How big is the picture of themselves in the ad? How big is the picture/logo of their company in the ad? Now, how big is the picture of the homes they are “selling” in the ad? If the homes in the ad are little thumbnail pictures, they are using those lisitngs to market themselves and their company and to attract new listings – not to help sell your home.
The reason we don’t advertise our listings in print media isn’t just because it’s so expensive, it’s because it has become so outdated and ineffective! Also, by the time your listing would make it into print media, your listing would be weeks old. This is incredibly important in today’s world of instant access of information, because the NAR reveals that 84% of home buyers use the internet as an information source when searching for a home. We concentrate our marketing strategies on internet based marketing techniques.
Once a home seller knows the real truth about how selling a home really works, they soon realize it doesn’t matter what the name of the real estate company is. It especially doesn’t matter if the real estate company you hire promises newspaper ads or home guide ads.
Also, remember that real estate agent’s fees are negotiable! Some agents might not be able to negotiate a listing commission fee because the Broker in Charge of the real estate firm will set the commission fee for that office. Also, make sure your agent is a member of our local Board of Realtors before signing a listing agreement.
To learn more about our listing service click here.
Why you need your own real estate agent when buying a home:
Did you know that the listing agent is working directly for the seller? It’s their job to get the best price and best terms for the Seller. A buyer agent works directly for you, trying to get you the best price and terms. Would you use your spouse’s lawyer in your divorce? Why would you use someone that is forbidden to disclose any information regarding the sellers and their motivation to sell. You need an exclusive buyer agent in order to negotiate the lowest price and most favorable terms for a buyer.
Also, remember having your own buyer agent costs you NOTHING! It’s the sellers that pay our commissions.
Traditional real estate agents love to use the word ‘discounters.’ It’s their way of cheapening the innovative ways we have come up with to save real estate consumers (buyers and sellers) thousands of dollars on a single real estate transaction.
In any real estate transaction there is a buyer and a seller. A listing agent works with the seller and a buyer’s agent works with the buyer. The party/person who pays all the commission in a real estate transaction is the home seller. Buyers never pay a commission!