Most people recognize, while the commission charged, by real estate agents, is often, quite similar, within local communities, they vary. Not only is it the law, but the most efficient, effective way, to conduct business. Although homeowners should not focus, all their attention, on this rate, it is, of course, one, which should, and is considered, quite often. With that in mind, this article will attempt to briefly examine, review, consider, and discuss, what this means and represents, and 5 factors, regarding, why real estate commissions vary.
1. It’s the law: Since real estate agents are Independent Contractors, they must be free, to determine, the best commission, and their reasons, for asking for a specific rate. This is not only, the law, but, rather, also, the reasonable, best possible approach!
2. All representation is not always equal: Sometimes, we should look at these fees, as, You get what you pay for! Different agents possess different abilities, attitudes, willingness to pay attention, services, and perspectives, which might make a particular one, more valuable to a specific homeowner! During the interview and presentation process, a potential client, should carefully evaluate which representative, might best serve, their specific needs. How well does the individual, defend his reasons, exhibit superior value, based on negotiating prowess, and expertise, etc? If someone is unable to justify his own value, how will he be able to perform the finest negotiations, on your behalf?
3. Time/ effort: Some agents will exhibit more effort, and dedicate more time, than others. In addition, some properties require more effort, than others, in terms of marketing, staging, and making the best, possible impact, so the homeowner has the best chance, to get the best possible price, in the shortest period of time, with a minimum of hassle and stress!
4. Agent’s value: When you interview, to hire you representation, it’s important and essential, to determine the value, of each individual, not merely in terms of services, but, rather the relevant benefits, of their efforts. If someone provides superior, more valuable service, they should be entitled, perhaps, to higher compensation.
5. Service: Will the person you hire, be there, for you, consistently, addressing your concerns, answering questions, explaining their reasoning, and how, teamwork, might provide the best results, as well as be the resource, to help you find the finest professionals, for you, in related areas, such as mortgage banking/ brokerage, home inspection, legal representation, stagers, etc? Will he be there, for you, from the onset, through the closing?
All agents are not equal, so why should all commissions paid, be? Find the individual, who will best serve your specific needs (actual, anticipated, and potential)!