How much? Everyone seems to be asking this question these days, because cost has become a very important factor in every decision, from the smallest purchase to the largest. The costs to sell your home are real and significant. You should never be afraid to ask about costs, and you should be skeptical of anyone that discourages an open, candid discussion of them. In my business experience, I’ve observed this general coincidence: those that mock an open discussion of pricing tend to be the ones charging higher prices. When costs are so important to your decision, putting a discussion of real estate commissions off to a private negotiation can lead to trouble down the road because it shifts the focus to my commission rather than keeping it squarely focused on your real objective: selling your home so that you keep as much as possible of your home’s value.
I’ll list your home for a commission of 4.5%. Of that 4.5%, I provide a full 3% to buyers’ agents to make sure they have every reason to show your home to their clients. When you list your home with me, I provide honest feedback to help you price your home to sell. In the end, with the savings from my lower commission, you’ll keep more of your home’s value.
I’ll aggressively market your listing because I’ll …
- Create a unique website that is exclusive to your home
- Conduct a direct mail campaign focused on your — and only your — home
- Run print ads in local media
- Hold multiple open houses until your home sells
- Make your home a Showcase listing on Realtor.com, a leading site used by online home searchers
- Feature your home on my own high traffic website — my over 1200 unique community snapshots bring visitors looking for homes like yours
As you can gather from what I’ll do to market your home, my competitive commission reflects a lower commission, not fewer services. On a $500,000 home, you’ll save $7,500 over what many consider the typical real estate commission. On a $1,000,000 home, your savings are double that amount — $15,000. For even more valuable real estate, your savings can be more than the price of a new car. Can you afford to pass up those savings?
Out-In-The-Open Real Estate Commissions Are Right For Today’s Economy
Can you imagine a world where the cost of a service — an important factor in a decision — isn’t openly disclosed? Commerce would grind to a halt. My out-in-the-open real estate commission structure fits with conducting business in today’s world. Savvy consumers have known for some time that everything is negotiable, and real estate commissions have been no exception. But that left most home sellers wondering whether they gave away too much of their home’s value to list it for sale because few agents opted to make their commission structure public. I deliver a lot of value for my clients, and my commission structure is aggressive. That allows me to confidently post it for the world of you and your neighbors to see. There’s no more second guessing whether you kept your transaction costs to a minimum.
Why Some Competitors Don’t Like Aggressive, Out-In-The-Open Real Estate Commissions
Many believe that a 6% real estate commission is standard practice in the real estate process. That may have had more validity years ago, but it’s no longer accurate. CBS News cites a letter from a vice president of the National Association of Realtors which states:
All real estate commissions are negotiable and the average is 5.1 percent….
While averages go up and down, the economic challenges we’ve faced combined with technological improvements such as internet searches and smart phones that make realtors more productive will combine to push that average commission even lower. As CBS News noted, over the past 25 years, the price of homes in the US has roughly quadrupled, yet in the face of huge productivity improvements brought by the internet, transaction costs have only recently started to decline. And it’s about time. My out-in-the-open 4 1/2% commission structure is a good first step.
Some industry publications encourage agents unwilling to offer lower commissions to try to turn the tables on home sellers who point to agents offering lower commissions. They recommend “using a question to remain in control of the negotiation…” and asking how the agent offering a lower commission can successfully negotiate the sale of a home if he or she can’t avoid offering a lower commission. Savvy shoppers see through this silly tactic. Real estate agents don’t set overall commission rates or the prices of real estate. Prices are set by market forces, and it’s laughable for anyone in a dynamic market to suggest otherwise. Is it fair to those who might suggest that I’m a bad negotiator because I offer a competitive real estate commission of 4.5% that they are bad negotiators because they accept a commission of 6% instead of an even higher rate, such as 8% or 10%? If those critics truly have such impressive negotiating skills, why can’t they negotiate a commission above 6%? It doesn’t take much scrutiny for the “bad negotiator” argument to fall apart.
When you’re ready to discuss listing your home for sale, give me a call or send me an email. We’ll be able to move forward quickly getting your home on the market, because we won’t waste valuable time negotiating my commission.
703.608.4004