As a home seller, did you know that you commit to paying a commission upon sale when you work with a real estate professional?
Did you know that this can be negotiated and adjusted if desired? Did you also know that setting commission too high or too low could possible hinder your home selling process? Hopefully, these questions have you thinking. A commission is vital to the real estate industry because it is how professionals are paid. Real estate is one of the few industries where a person can work for many hours and days and end up making no money. That’s okay. That’s what we sign up for, but it helps you to understand why commissions are important. When you hire a REALTOR and work as a team he or she should have as much interest in selling your home as you do. You will be able to set the work parameters and expectations up front when you interview agents.
You know the saying about you get what you pay for, this may not always hold true, but if you hire a real estate agent, that has experience, high reviews and strong ethics you can count on it being a positive experience. Ask the agents you interview to provide you with a list of what will be done to effectively market your home, commission rate and timelines.
What can happen with:
Too Low of Commission
- If your real estate professional agrees to a lower commission, you may experience a reduction in your agent’s marketing efforts to sell your home. For instance, the video and photography budget the agent has may be determined by the expected return on their investment.
Too High of a Commission
- If you agree to a high commission sometimes, it can cause your agents to narrow their marketing efforts to get the highest offers, rather than trying to attract a broad audience of potential buyers. Plus, you could feel taken advantage of when you find out your neighbor paid a lower rate.
Just Right Commission
- If you abide by the industry-standard, your agent will think creatively on how to get your home sold quickly and for as much money as possible, while working to set your listing apart from others on the market. Remember communication is the key from the start when it comes to creating a win-win real estate transaction.
Make sure to have your real estate professional perform a market analysis before you determine a commission rate. This will help to make sure they give you an honest assessment of the value of your home. Find an agent who is loyal to you as a seller, your listing, and will work hard regardless of what the commission itself would have driven them to do. Then the day you close on your home – it will be a celebration for everyone!