When choosing an agent to sell your home, beware of desperate discount agents who cut their commission just to win your business. Agents who are quick to discount their commission will typically cost you more money in the long run. Read on as we explain how.
One of Calibre’s top sales agents, Marlene Baker, tells us why she believes you shouldn’t choose an agent based on cost. “The agent you choose will be negotiating the final sales figure on your behalf. If a prospective agent isn’t confident in their own ability to justify their own sales commission fee with you, then why would you trust them to negotiate the sales price your biggest asset?”
Marlene has been a real estate agent for over 5 years and have sold more the 120 million dollars worth of property. When it comes to finding a confident & experienced sales agent who always strives to achieve top dollar for her clients, Marlene Baker should definitely be at the top of your list. Marlene shares with us one of the many experiences she’s had “I had a client recently who, before meeting me, first listed with a desperate discount agent thinking it would save them money. Unfortunately, they spent over 90 days on market with only 15 groups through, countless open homes, no offers and an unmotivated agent. You only get one chance of listing for the first time and this was ruined. The desperate discount agent ended up costing them thousands of dollars in time on market, marketing fees, extra mortgage repayments with no interested buyers. After being on the market with me for less than 7 days, we had the property under contract for a great price. The vendors couldn’t believe that my team and I achieved a premium result in such a short turnaround.”
Typically, an agent who discounts their commission will want a quick sale and won’t strive to achieve top dollar. If you’re looking to maximise your return, then the best agent to choose is the one who will sell your home for top dollar. They are a skilled negotiator and will work hard to achieve the best possible sales price for your property.
Marlene tells us that “it’s not rare to find properties where a desperate discount agent has made a quick sale $150,000 BELOW market value”.
Let’s do some loose calculations based on this amount.
- If you chose a desperate discount agent because their commission of 2% was .5% cheaper than a good agent.
- The discounted agent then sells your property for $800,000.
- Then you would pay $16,000 in commission. Leaving you with $784,000.
- However, if you chose a good agent who wasn’t quick to discount their rate and knew their worth.
- The good agent then sells your property for $950,000.
- Then you would pay $22,500. Leaving you with $927,500.
So, while the desperate discount agent may seem cheaper, in actual fact in the grand scheme of things, they are losing you money. When it comes to choosing the best agent to sell your property, you get what you pay for.
At the end of the day, you should feel confident that you chose the best agent to sell your home who will get you the best result possible.
If you’d like some more ideas on selling real estate, check out our other articles:
- How To Chose The Best Agent To Sell Your Home
- Why Can’t I Sell My House? Insider Advice To Get It Sold
- How to Improve Street Appeal in 4 Easy Steps
- 10 Tips To Sell Your Home Faster & For More Money
- 10 Tips To Clean Your House and Get It Sold
To speak to a real estate agent about buying or selling property, contact Marlene Baker on 0423 799 727 or to search properties currently for sale then visit the Search Properties page on our website.