Stop Choosing Agents Based On Cheap Fees
Most people are wrong about agent fees. People believe all agents are equal. They select the cheapest one. They think they are saving money. If Agent A charges 1.5% and Agent B charges 2.2%, they pick Agent A. They think they saved money in the pocket. But this is false economy. The cheapest agent is usually the most expensive in the end. The reason? Because they sell your home for less. The lost value dwarfs than the commission difference.
Use logic. If they can't defend their own full fee, how will they negotiate your money? They can't. They fold immediately. When the heat is on, they advise: "Take it." They want the quick sale. They don't fight. Brad Smith pushes for more. We are professionals.
I watch vendors locally drop tens of thousands to save pennies. It is tragic. It is a one-time event. The goal is the peak. Commission is a cost of sale. If the agent gets a premium, and I cost $5,000 more, you make more profit. Look at the bottom line. Focus on what you keep, not the expense.
Price vs. Performance In Real Estate
Know the gap between price and result. McDonalds and fine dining are not the same. Salespeople are no different. Some are order takers. They upload photos and wait for the phone to ring. That is zero skill. Why pay for that?.
A negotiator markets proactively. We chase leads. We style the home. We use psychology. Key point: we close. When the offer is "$600,000 is my limit", the order taker writes it up. I know how to squeeze. That increase is your money. That is performance.
Budget brokers rely on volume. They need bulk sales to make a living. They are too busy to maximize your price. You are a transaction. I focus on quality. So I can dedicate time on your result. My fee allows me to give 100%. Don't hire the busy fool.
The Skill Set That Matters Most
Negotiation is not arguing. It is influence. Knowing tactics and when to shut up. It is reading body language. It is creating FOMO. An expert gets more money willingly. We use competition to elevate value.
It is learned to master. It is valuable. You employ me for this reason. Not for the sticker. You pay us to negotiate. If they are untrained, they will cost you. They will suggest you drop your price instead of lifting the buyer. Easier to lower price than to push a buyer. Bad agents lower price. Pros increase offers.
Interview question: "Tell me a story of a recent negotiation." Hear what they say. If the answer is "It was easy," run away. You need "The offer was $500k, I worked them to $530k." That is the winner. I fight for you. That is my job.
Marketing Budgets: Who Pays For What?
Cheap agents often offer "free marketing." Sounds good? No. There is no free lunch. If they pay, they go cheap. Basic listing. You get iPhone photos. Small sign. The reason? they are paying. They minimize cost.
To sell for a premium price, you need premium marketing. Highlight ad. Video. Virtual styling. Facebook boost. It isn't cheap. It casts a wide net. More eyes = more offers. Bidding wars = profit. Cutting ad spend and lose a bidder, you might lose $10,000 in price. That is bad math.
My strategy is investing in marketing. We do it right. We do it properly to get the result. Your house. Showcase it. Don't hide it in the dark to save a few dollars. Marketing works.
Beware Of Over-Quoting Agents
Another trick of desperation promising a high price. They tell you it is worth millions when market value is less. The goal is to win the job. They get the listing because you want $700k. Once listed, it sits there. They blame the market. They crunch you down to where it should be. It sells low after wasting time.
You picked the cheat. The good agent who said $600k missed out. Don't punish honesty. If it sounds too good to be true, ask for proof. Prove it. Without proof, it is a lie. I value correctly. Data leads me. I might be conservative, but I deliver. I get more with hard work, not false hope.
Be aware. There are tricks. Find the ethical agent. Pick the agent who tells you what you need to hear, not fairytales. That is the partner who will actually sell your home at the top.
How To Spot A great Agent
When interviewing, ask these questions:
1. Explain negotiation.
2. Can you show general information reference me your track record?.
3. How do you handle multiple offers?.
4. Explain your cost.
5. How will you find buyers?.
Their answers shows their skill. If they waffle, next. If they are sharp, sign them. If they drop their fee without a fight, reject them. If they can't defend their income, they will lose your equity.
Grill me. I love the interview. I am prepared. I deliver. Let's work together. Not because I am cheap, but because I am the best. Quality pays for itself with the final price.