Commission

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It’s only natural that people want to save money.  For years, as average home prices steadily increased in the nation and here in the Golden Isles, more and more homeowners were balking at the commission involved in the sale of their home.  And now, today, as home prices drop, Sellers once again are balking at paying commission because they are not making a much profit as they could have two years ago.

What many fail to remember then and now is that marketing costs have risen at an even higher rate than home prices. Plus, today, there are so many more marketing options, that in order to maintain a well-rounded marketing plan a great deal more must be spent.  Most of these things didn’t exist ten or even five years ago.  Consider an agent’s costs ten years ago: membership dues, their car, business cards, newpaper ads and perhaps a home magazine or two.  Possibly a cell phone… possibly a computer, but not as the cornerstone of  business as it is today.

Now, consider the myriad of equipment and services required today to operate a real estate business and market property.  The list increases almost exponentially when you consider computers, internet, cell phones & services, on-line marketing costs, various software, various hardware, and on and on.  At the same time, traditional media such as newspapers and magazines have increased their advertising rates ten-fold…

So now, what about the drop in the market?  Do we no longer need the internet to operate our real estate business?  No longer need our cell phones?  No longer need all the on-line services?  Do you suppose the Atlanta Journal or The Brunswick News will reduce their ad rates? Do you suppose Verizon will drop their rates now that real estate prices are in a slump?  What about the banks who hold the mortgages on our office buildings?  Do you suppose they will reduce the mortgage payments?  The copier guys will reduce their maintenance fee?  The power company will reduce their charges for running electricity into our buildings?

Do you see what I’m getting at here?

Many consumers, when surveyed, have no problem paying a premium price for premium product or service.  And yet, when it comes to hiring a real estate agent, people fail to see the value in their services and thus, their fee. Perhaps this is because it’s a service they believe that could technically do for themselves.  They figure that it’s purely a matter of ’selling’ their product – their home… and who else better to sell that product than the ones who know it the best.

What they are missing is the fact that selling a home is more than just finding a buyer for it.  Unlike products at the retail level where once the consumer finds the product and decides to buy it, it’s simply a matter of handing over  cash or their credit cards and walking out of the store.  When you buy a house, it’s a process.  A process dealing with legal issues, contracts, negotiations, obligations to perform, etc.  When you hire a real estate agent, you are hiring that agent to not only market your home but also provide advocacy, expertise and representation throughout the entire process.

Also, much of our services to you occur away from you, behind the scenes.  Much of our work is done on the phone, the internet, at our office, in our cars, at home, at all hours of the day and night.  You can’t stand by and observe a REALTOR® in action as you can a plumber who’s fixing your pipes or a HVAC repairman working on your heat pump so it’s hard to really know what we do all day long.

Our expertise lies in our connections, our reputation, our ability to expose your home, not only locally, but regionally and nationally. A For Sale By Owner (FSBO) traditionally pokes a For Sale by Owner sign in their yard and places an ad in the local paper. For some, this is all they need. A potential buyer combing the paper or driving by might see it and buy it. It does happen. More often than not, however, especially in our area, the right buyer is out of town with no access to that yard sign nor the ad in the local paper. Working long distance, they are likely to be working with a real estate agent, who is directing them to homes listed on the MLS. This is where our skills and our connections can prove invaluable.

But once again, let me remind you, our role is not limited to simply marketing your home and finding you a buyer. It’s about representing you and acting as your advocate in the actual sales transaction that is to follow. This is where our expertise, knowledge, professionalism, communication skills and experience come to play. This is something not easily replicated, imitated or replaced.  There is a value in the knowledge we possess regarding the intricacies of the local market.  There is value in the knowledge we possess regarding the purchase & sale contracts, in knowing how to properly draw up these contracts, knowing the correct wording to use to ensure the contract is not at risk of being voidable, understanding what additional documents might be required to protect your best interests, being familiar with the process of negotiations and the importance of follow-through once the contract goes binding.  These are things the average homeowner is unable to do for themselves.  These are areas in which they put themselves at enormous risk. These are areas in which they place themselves at a great disadvantage, all in the name of saving a little money – which when it boils down to it, how much money did they actually save in time, energy, stress, liability and so forth?

The funny thing about hiring a REALTOR® is that you pay nothing up front. The agent spends his own money to market your home and it can get pretty expensive depending on the level of marketing you require. In the end, however, if that agent fails to sell your home in the time period allotted within your contract, you can hire someone else and you don’t pay the first agent a dime. The agent takes a loss for the marketing costs and you have lost nothing but a little time.

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