Sometimes people ask me what the difference is between a highly experienced agent, like me, and a less experienced agent. Generally, the difficulties of a transaction – the traps – are more visible to me than to the less experienced. New Realtors will learn these traps with time, but the customer pays the price for that education.
What if an agent charges a lower commission? Homeowners should be considering increased profit and greater ease, not just the Realtor’s fee. The Realtor’s commission is just a piece of the equation – a percentage of the actual sold price achieved. A better question is, “Which agent has the skill and experience to produce the most profitable real estate deal and make this transaction easier for me?”
A home seller may view reducing the commission as a direct route to making more money. A better money making choice is to increase the price. No skill is involved in reducing the Realtor fee, and many agents are likely to do that to get the job. But you get what you pay for. On a $4M house my clients make an additional $120,000 profit compared to the typical agent.
Montecito Market Report
I know this because the SBMLS tracks the effectiveness of Realtors. Their stats show which agents do a better job of achieving a higher sales price, by publishing the original listing price for each home and the actual closing price.
Since 1992, more than 50,000 properties have been sold on the South Coast through the MLS. Over these three decades, the average home seller discounted their price 8.4 percent to make a sale. They received 91.6 percent of their listing price. My 400 home sellers during that same time received 95.6 percent of the listing price – 4 percent more money than the average Realtor achieved over those years.
So, on that $4M sale, the agent who reduced their commission 1 percent “saved” you $40,000. An effective agent, like me, earned you 4 percent more money. Which is better: $40,000 less cost or $160,000 more profit? That is the difference skill makes.
More money is always good, but it is also important to have more ease. I have seen less experienced agents fail to have homes inspected before listing them, of failing to find Radon, roofs needing replacement, poorly determined lot lines and dozens of expensive hidden issues that cost sellers big money. I see these issues more quickly and take appropriate steps to keep them out of my client’s transactions. You do not want your home’s sale to become part of a less experienced agent’s learning curve.
Many agents, experienced or not, are so intent on getting your listing they do not find out the true condition or the real value of your home. They consider these small details to work out“ later, after we find a buyer.” Besides the inspection, I do a Current Market Analysis for every Seller who consults with me.
Use an experienced agent who does their homework. One who finds out what it will take to sell your home at the price that’s best for you. Please give me a call; I would be happy to give you a no – pressure, confidential consultation.
Client Talk…
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