People fall for these. Usually, it's because they don't know any better. So, like the magician who tells all the secrets about his illusions, I'm letting everyone know. Why? I figure people appreciate honesty and integrity, rather than being dooped into something.
Recently, I heard that there are Realtors in Central Jersey who are asking for 6% commission, with 3.5% to them as the listing broker and 2.5% to the Buyers end. (FYI - All commissions in the state of NJ are negotiable. There is no such thing as a standard commission.) The reasoning is to get you to believe that with all those listings out there, their company will push yours more, since you're paying more. Hogwash!
The reality is that whether you pay 2.5% or 3.5%, the listing agent and their company are pushing your listing just as hard. Simple reason is that no matter what the commission, they want to get your home sold. So, they will use every means possible. For example, for Open Houses in the newspaper, are they somehow calling extra attention to homes with higher commission? Absolutely not! How about the Internet? Are they doing anything special for the 3.5% home they aren't for the 2.5% home? I doubt it. In fact, I'd be curious to hear what they'd say if you flipped it on them and asked if they would perform worse for you if you gave them 2.5% instead of 3.5%.
So, all this being said, if an agent and their agency is worth it, you should pay them what is fair. However, don't be tricked into believing that paying them more will somehow get your home sold faster. It just ain't so.
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2 comments:
That is so funny, as a listing agent I have done it the other way. I have also had some bone head REALTORS try to say it was unethical to encourage home sellers to pay a higher than average buyer agent commission. Unethical they say, to that I say, it is just economics really, and sales. We all know the squeaky wheel gets the oil.
Yeah, I know! Usually, when I list, I do encourage sellers to give out extra as an incentive for Buyer's agents to show. Sometimes, though, I wonder if it's better just to get them to come down lower in price, even it means not giving out the full 3%...
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