Should I save on the sales commission by hiring a representative that is willing to discount their own value and put themselves “on sale”?
Should I spend $3,000.00 less?
Should I invest in a representative that believes in themselves and their value as a productive, results oriented sales professional?
Should I make $33,000.00 more?
Regardless of which strategy you employ and which choice you make, you will get exactly what you bargained for.
Fortunately for us, we generally control our choices, but, unfortunately for us, we seldom control their consequences!
Cost vs Value
If you choose representation based on the representative’s cost rather than on their value, you will get just what you paid for, and if your choice is an agent willing to negotiate themselves into a smaller paycheck, how do you think they will negotiate on behalf of your home?
The simple statistics are as follows: the average home sale on the Kenai Peninsula is $300,000.00. A one percent discount (which is the average maximum discount) from the traditionally accepted commission then, would be $3,000.00. That $3,000.00 does not represent pure profit to the agent. No, more precisely, it represents funds, from which the agent can draw on to market your home. That $3,000.00 discount that you requested or demanded from your agent up front as a prerequisite to hiring them, significantly reduces the means by which your new employee can invest in the marketing and promotion of your home, as well as effecting their net profitability. What do you think the “it rolls downhill” effects are of this strategy? As experienced real estate professionals, we can tell you what each and every consequence of this strategy is, however, regardless of the many consequences, the final effect is the only one we will mention. In each and every case, negotiating with your agent for a smaller paycheck, statistically reduces the money you receive at closing. How you ask. Here’s how:
Alternatively, here are some more simple statistics: professionally managed and marketed homes, wherein the agent has not been compromised by a discounted commission, can effectively invest more money, skills and time in the marketing and promotion of your home. Homes managed, marketed and promoted by educated, motivated professionals with the money, the skills and the tools, sell homes for an average of 11 percent more money than the alternatively compromised, discount agents. That results in $33,000.00 more money in the owner’s pocket at closing.
In life, we tend to accomplish our primary goals, and as we mentioned on the “Selling Your Home” page, strategy and planning are key elements in achieving any of our goals and objectives.
From the very start, if we choose to approach the sale of our home as if it were a swap meet or a garage sale, in which cutting costs and saving money is our strategy, then we will most likely accomplish those primary objectives. But, at what price?
The mindset of cutting costs and bargain shopping does exactly what it intends to do, it saves money. But never mistake saving money for making money. Saving money and making money are not now, nor have they ever been the same thing. Thus, the old adage of stepping over dollars to pick up dimes.
When we choose to treat our lives and our assets like they are ON SALE instead of FOR SALE then we generally get exactly what WE BARGAIN FOR.
We’ve never met a homeowner, in earnest to sell their home, that wanted anything less than top dollar in return for their investment.
Yet when homeowners approach us from the perspective of bargain shopping and saving on their representation, then we have to wonder, maybe they are not as committed and concerned about top dollar as most homeowners are. And we know that they are not as committed and concerned with top dollar as we are, but in their defense, perhaps these clients assume that all real estate representation is equally competent and committed to them and the value of their home.
Thus, instead of shopping for skilled professionals that will market, promote and retain the highest dollar for their home, they shop for bargain basement representation willing to accept a paycheck… any paycheck, even if it is not enough to professionally market the seller’s property.
On these occasions we must remind ourselves that competency, confidence, education, enthusiasm, experience and skill all have value, and that value makes money. We must remind ourselves just how important an asset we have, invested in our home, and just how much difference there can be in the success and profit of the sale of this asset through carefully choosing a professional representative that is sufficiently prepared and that values us as clients, our home as an asset and the profit that is stored inside that investment.
We are experienced professionals who take our careers very seriously, and from our first meeting with you as our client we will collaborate, plan and market your home toward that one most important goal, finding the buyer that sees your home as theirs and is eager to pay what it is worth to make it their own. When we represent you and your home, both are the most important assets that we have.
Like most professionals we take great pride in our work. And like any great professional, we expect a great paycheck… and we are worth it.
If you are currently of the mindset of least cost instead of greatest return, we invite you to call us and inquire why we are worth your trust, faith, commitment and of course commission.
We are worth never asking us “what’s the least we will take”.
