The TRUTH about Real Estate Commissions

So what is the standard rate of commission being charged by Realtors today?
Well, for starters, there is NO SUCH thing as a Standard, No Minimum - No Maximum
Thanks in part to the Federal Competition Bureau
But regardless, here’s the bottom line. Are real estate commissions negotiable – YES – Sure they are
As much as is the case with almost anything in life
Does that mean that every agent will negotiate his or her commission – NO – Absolutely Not
Does that mean you have to do business with them – No - Absolutely not
Does that mean they have to accept you  as a client if you refuse to pay the commission they charge –  No - Absolutely Not
Does that mean that if you choose to go with the agent that offers you the lowest commission you are going to NET  the highest possible return –NO ABSOLUTELY NOT
There are many excellent agents out there that derive 100% of their personal income from real estate commissions and remain 100% committed to providing the very best Real Estate services they are capable of. Folks not all Realtors were created equal. As is the case with almost any profession. The Best ones aren’t afraid to provide you with things  like Service Guarantees or Communication Guarantees, because they know how committed they are to what they do. It’s a simple strategy really ..... “I do what I say I’m going to do, or you can cancel the contract, no questions asked! And let’s put that in writing”. Many Realtors provide top notch, first rate service and for that level of service, they feel they are worthy of the fees they charge.
What’s really important to note here folks, is that a Realtor’s obligations, nor their liabilities change with the amount they charge. Just remember, as is the case with many things in life ... quality doesn’t cost .. it pays and in many cases ... you’ll get exactly what you pay for ... so do yourself a favour and interview a few Realtors before making that all important decision to list your property and might I suggest, ..... identify with the one that Negotiates hard to protect the integrity of their own income.
Let’s examine this simple case scenario:
Realtor A) Gives you a price and stands firm on a commission rate of 5.00%
Realtor B) Suggests the same price but voluntarily offers to reduce the commission to 4.00%
On the surface it looks like a no brainer – right? ......... WRONG!
Nothing could be further from the truth. When it comes to selling Real Estate, the only thing that matters from a financial perspective is your NET Bottom Line.
Now I want you to really step back and think about this one before you make that all important decision.
Do you think an agent who has the ability to Negotiate is going to have an effect on your bottom line? Of course they are ..... this impact could amount to many many thousands of dollars.
Now - Do you really think that an agent that voluntarily offers to reduce his/her own commission out of fear of not getting the listing and is incapable of negotiating their own pay cheque, is somehow going to miraculously appear as a Negotiating Superstar positioned to aggressively defend YOUR bottom line?
I don’t know about you – but clearly that’s not the agent I’d want representing me
Simply put - these are NOT the behaviours of the Strong Negotiator you should be looking to hire. Although yes, Real Estate commissions are negotiable, my suggestion to you is this: go with the one that not only defends their income, but has the ability to demonstrate value for the services they offer.
I trust you know by now, that I value your opinion, so if there’s a topic you’d like my opinion on, or you just want to leave a comment about this post, feel free to contact me at rory.campbell@century21.ca
Until Next time, this is
Rory CampbellCentury 21 Heritage GroupNewmarket Ont.905-895-1822

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