As is with purchasing anything in life, we always want the best deal. In many cases this can mean the best quality product for the most economical price or simply the cheapest available option. The latter is usually a result of having limited resources or funds.
We all know someone in our circle that has had a bad or poor real estate experience in their lives, right? Why is this the case? People generally go through a selection process and interview at least 2 agents and at the point of making a decision wouldn’t be doing so if they didn’t feel they had gotten a good deal… So why do so many people end up having bad experiences or feel completely underwhelmed?
There are a number of factors but quite simply, the selection criteria is wrong. Most people are choosing their selling agent based on;
The promise of a high price vs the most economical fee.
This would all work out fine if the price and the service promise were lived up to but that is rarely the case. Why? Because being able to achieve a high price is a skill and doesn’t just happen.
The experiences of consumers with real estate professionals would be so much more positive if home sellers selected their agents based on;
The most competent agent with the skill set and strategy to get the best price.
If you were having open heart surgery would you want the cheapest surgeon going around or would you want the best? Something tells me a person wouldn’t be getting quotes they’d be looking at success rates and past patient experiences….
Now I’m not comparing an agent to a surgeon but the important decision of health and finance are 2 of the biggest you will ever have.
The fact about real estate sales people is that the one a seller chooses will have a direct impact on the sale price of their property. Wether it be hundreds or tens of thousands. So it makes sense to ensure that you have a great negotiator who can not only say they are but demonstrate this in both skill and strategy.
Could the most expensive agent actually be the cheapest?? The answer is yes. Let’s say an agent with commission 0.5% more than another was able achieve a price just $5000 more than the cheaper option would that be worth it? Absolutely. On a $500,000 home that means you would pay $2500 more to the agent but you would get $5000 back.
Any smart investor would see value in spending $1 and getting $2 back.
Now this doesn’t mean that we should just go out and find the most expensive agent but it does mean that we should seek one that is competent that can demonstrate skill and strategy while being able to clearly articulate what actions they are going to take and then deliver on them.
At the end of the day, to get the best price a seller required the services of the best sales person.
Tip: Avoid using third party referral sites to find agents. They make their money from taking a portion of the final commission and rarely ut forward the top agents available only the ones qwilling to part with their commission to buy the business.