Sellers often misunderstand what agents charge. The assumption is all agents are equal. They pick the lowest fee. They believe they are smart. If Agent A charges 1.5% and Agent B charges 2.2%, they pick Agent A. The math says a few thousand. This is dangerous math. The cheapest agent loses you money at settlement. Why? Because they sell your home for less. The lost value is much more than the saving in fees.
Consider this. If they give up their own full fee, how will they negotiate your money? They won't. They give in straight away. When a buyer offers low, they advise: "You should sell." They want volume. The last dollar doesn't matter. A good agent pushes for more. Because we value our skill.
I witness owners locally lose $20,000 or $30,000 to save pennies. It breaks my heart. You have one shot. You need the maximum price. You pay for performance. If I get you a premium, and I cost $5,000 more, you win. That is the net result. Look at the net, not the fee.
Price vs. Performance In Real Estate
There is a difference between price and result. McDonalds and fine dining are not the same. Local agents are no different. Some are order takers. They list online and wait for the phone to ring. That is easy. That is not service.
A professional creates competition. We chase leads. We manage the look. We write compelling ads. Crucially: we deal. When the offer is "$600,000 is my limit", the order taker writes it up. I know how to squeeze. The gap pays the fee 4 times over. That is value.
Discounters churn and burn. They need bulk sales to make a living. They don't have time to spend time on you. You are a transaction. I focus on quality. To work harder on your sale. My fee allows me to do the job properly. Avoid the churner.
Why The Best Negotiators Charge More
It's not fighting. It is a science. Knowing tactics and staying calm. Reading people. Using leverage. A good negotiator can make a buyer increase their offer against themselves. We use competition to drive the price up.
This skill takes years to master. It is gold. You engage us to do this. Not for the photo. We are there to negotiate. If they are scared, you lose. They ask for reductions because they can't get the buyer up. It is easier to crunch a seller than to get more. Discounters reduce. Good agents build.
Interview question: "Tell me a story of a recent negotiation." Listen to the answer. Should they say "It sold quick," be careful. You want to hear "The offer was $500k, I worked them to $530k." Hire that one. I love the deal. I guarantee it.
Marketing Budgets: Who Pays For What?
You might hear "no marketing costs." Great deal? No. Someone pays. If they pay, they spend the minimum. Bottom tier. Bad pictures. You get no signboard. Because they are paying. They want to spend less.
For the best result, you need exposure. Premiere listing on RealEstate.com.au. Video. Floorplans. Facebook boost. It is an investment. But it finds more buyers. Volume creates price. Competition = higher price. Being cheap on ads and lose a bidder, the result drops. Poor return.
I recommend you pay for ads. Because then we control it. We do it properly to sell well. Your investment. Light it up. Don't scrimp for a small saving. It creates the result.
The False Promise Of A High Price
Another trick of bad agents lying about value. They promise it is worth millions when it is worth $600k. The goal is to win the job. You sign with them believing the lie. Later, it doesn't sell. They blame buyers. They crunch you down to $600k. You get market value eventually.
But you hired the liar. The good agent who was real lost the job. Don't punish honesty. If the price seems high a crazy number, be suspicious. Show me the sales. Without proof, it is a lie. I value correctly. I base it on facts. I might be lower, I achieve it. I get more via strategy, not false hope.
Protect yourself. Real estate is full of sharks. Look for integrity. Pick the agent the hard truth, not fairytales. That is the guide who succeeds at the top.
How To Spot A great Agent
In the appraisal, quiz them:
1. Explain negotiation.
2. Prove your results.
3. How do you auction?.
4. Why is find out more overview your fee higher/lower?.
5. What is your marketing strategy?.
Their answers shows their skill. If they waffle, walk away. If they are sharp, they are the one. If they cut commission without a fight, reject them. If they can't defend their income, they will lose your equity.
Ask me. I love the interview. I am ready. I am confident. Let's work together. Not on price, I am the value choice. Quality pays for itself in the end.