We all want to be sure that our agent is focused on extracting every last dollar for our property when we sell, right? That’s why it’s so valuable to have an incentive in place to ensure that your real estate agent has every reason to do just that.
This raises an interesting question…why are there still some agents advertising cut price fixed-fee commissions?
You get less service from a fixed-fee agent
There’s an old saying that you get what you pay for. So if you choose a cut-price agent, you should expect a cut-price service. As many people who have chosen this option have discovered after they have signed on the dotted line, many of these businesses who masquerade as real estate agents actually leave a great deal of the work to you, the owner. Fixed-fee agents have even been known to leave critical roles such as negotiating with the buyers to the vendor!
You could pay a fixed fee for no result
What many vendors don’t realize until it is too late is that some of the companies promoting a cut-price fixed fee to sell your home ask you to pay the fee up-front, and there are no refunds if your property doesn’t sell! Unlike a commission agent, these businesses charge a fee for an inflexible pre-packaged product, but with no guarantees of success. Any agent chosen by Ian Reid Vendor Advocates only earns a commission once they have achieved a result that you approve. That’s a very big difference.
A fixed-fee agent has no incentive to excel
As we mentioned above, a fixed-fee agent’s commission provides no incentive for an agent to work harder on your behalf for a better result. The fixed-fee agent will receive the same level of reward whether you get a good sale, a poor sale or no sale at all.
Trying to save money can cost you far more
Some homeowners make the mistake of selecting an agent with a lower commission rate and a cheaper marketing campaign. The problem with this approach is that not only do they get an agent who is not the top performer in that market, but they reach less buyers with their marketing. The end result is that an attempt to save yourself a few thousand dollars can cost you tens or hundreds of thousands of dollars in the end.
Ask yourself…why would you entrust your most valuable asset to someone whose self-marketing skills and negotiating abilities are so inferior that they have to cut their own income just to win the business? If they are willing to give away their own money, what do you suppose they will do with yours?
Don’t let a fixed-fee agent undersell your most valuable asset
Ian Reid Vendor Advocates have built an enviable reputation across Victoria by helping homeowners just like you to make the most of their property sale. This includes helping you choose the right agent, the right marketing strategy, and negotiating the right result when you sell…making the entire process a profitable experience.
If you want a skilled negotiator by your side every step of the way…someone you can rely on for experienced, objective advice from day one to settlement and beyond…give one of the team at Ian Reid Vendor Advocates a call on 1300 400 400 today.
You’ll also find lots of helpful tips in our free booklet, “Fatal Real Estate Traps Exposed”.