Defending Your Commission in a Cut-Rate WorldBy Barbara Pronin
Saving money is an American tradition, with many of even the most affluent among us searching the internet, shopping at discount stores, and using every means at our disposal to hunt down the very best price.
So it shouldn’t be surprising, when it comes to listing a property, that some homeowners balk at paying a fixed commission. In fact, according to a 2016 survey, 66 percent of millennial sellers say they’ve attempted to negotiate their real estate agent’s commission, with Generation Xers and baby boomers not far behind, with 58 percent and 39 percent, respectively. Add to that the increase of cut-rate companies offering discounted rates, and brokers can find themselves in the frustrating position of having to defend their commission. “Sellers have no understanding of how commissions are split or how much we actually pay for” said Corina Jones, an agent with Century 21 Scheetz Realty in Indianapolis, Ind. “I explain that to them, and I let them know how I will bring value to their transaction.” A reduced rate, Jones points out, often means reduced effort – and/or a less intimate knowledge of the marketplace. What, specifically, does a full-commission agent bring to the seller’s table?
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade. |
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