Sellers often misunderstand agent fees. People believe agents do the same job. They pick the cheapest one. They think they are saving money. If Agent A charges 1.5% and Agent B charges 2.2%, they choose the discounter. They calculate saving a few thousand. But this is false economy. The cheapest agent loses you money at settlement. Why? Because they sell your home for less. The lost value dwarfs than the commission difference.
Think about it. If they give up their own income, how will they negotiate your equity? They can't. They roll over immediately. When a buyer offers low, they advise: "You should sell." They want the quick sale. They don't fight. A pro pushes for more. We know our worth.
I see sellers locally lose $20,000 or $30,000 for a small discount. It breaks my heart. You have one shot. You want the top dollar. You pay for performance. If the agent gets a premium, and I cost $5,000 more, you make more profit. That is the net result. Look at the net, not what you pay.
Price vs. Performance In Real Estate
There is a difference between price and result. McDonalds and fine dining are not the same. Salespeople are the same. Some just open doors. They upload photos and wait for the phone to ring. That is easy. That is not service.
A skilled agent builds value. 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 maximize your price. They treat you like a number. I limit my listings. So I can dedicate time for you. My commission enables me to serve you best. Don't be a number.
How Negotiation Skills Impact Your Pocket
Negotiation is not arguing. It is psychology. It is knowing when to speak and when to shut up. Understanding signals. Building pressure. An expert gets more money without them knowing. We use the market to elevate value.
It takes practice to perfect. It is worth money. You employ me for this skill. Not to put a sign up. You hire us to handle the money conversation. If your agent is weak, money evaporates. They lower expectations rather than negotiating. Simpler to beat you down than to get more. Bad agents lower price. Pros increase offers.
Ask them: "Tell me a story how you negotiated." Listen to the answer. If they just say "It was easy," worry. Look for "The offer was $500k, I worked them to $530k." That is who you want. I fight for you. That is my job.
Understanding Advertising Costs
Cheap agents often offer "free marketing." Attractive? Be careful. There is no free lunch. If marketing is "free", they cut corners. Bottom tier. You get iPhone photos. You get no signboard. The reason? they are paying. They want to spend less.
To get top dollar, you need exposure. Highlight ad. Drone shots. Floorplans. Facebook boost. It is an investment. It casts a wide net. More eyes = more offers. Competition = higher price. Being cheap on ads and miss one buyer, the result drops. Poor return.
My strategy is you pay for ads. No corners cut. We do it properly to sell well. Your investment. Light it up. Don't hide it in the dark 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 the real value. It sells low eventually.
But you hired the liar. The good agent who was real lost the job. Don't reward lies. If an agent promises to be true, check the data. Prove it. If they can't, they are buying the listing. I tell the truth. Evidence based. I might be conservative, but I deliver. I often exceed it with hard work, not empty promises.
Watch out. It is a game. Find the ethical agent. Find the one the hard truth, not fluff. That is the expert who gets results at the top.
How To Spot A great Agent
In the appraisal, ask these questions:
1. How do you negotiate?.
2. Can you show me your track record?.
3. How overview page reference do you handle multiple offers?.
4. Why is your fee higher/lower?.
5. How will you find buyers?.
How they respond reveals the truth. If they are unsure, next. If they are confident, hire them. If they drop their fee as soon as you ask, don't hire them. If they give away their money, they will give away yours.
Grill me. Challenge me. I have the answers. I know my value. Pick me. I am not the cheapest, but because I am the best. And the best costs nothing with the final price.