Realtors and Commissions - Why?

Realtors and Commissions - Why? - Why are Realtors commissions in such dispute.



 Long Beach Real Estate                 Why     Why

The consumer  wants to know what makes one Realtor worth more than another and is seeking an explanation about  commissions.  I think the consumer should have some answers.


 

At the end of 3 interviews a sellers head must be spinning.  Most of the Realtors seem to be offering much the same, but the commission rates and suggested sale price are different and the seller just cant figure out why.  All of the Realtors said they do the same thing!  They all send out Just Listed postcards, provide flyers, signs and MLS listing.  They all will put my home in the local newspaper.  They all will do open houses.  They all will put my home on their websites.  They all will put my home out on the Internet.  They all had suggestions about how to show better.  They all showed me the comparables and had a comparable market analysis.  All of their findings were not the same!   Agent 1 said he could sell my house for a lot more and is not charging as much as that Agent 2 gal who said it would sell for less, but she wants a higher commission.  Agent 3 is out, didn't make the cut (pick your own reason, there are many). 

 

 

What do I do?

I really want to make as much money as I can from the sale, that Agent 1 says he will get me more money and charge less commission!

 

Did the seller ask each agent how many Just Listed Postcards were going out? 

Agent 1 will send out 200/300 around the immediate property, the seller does not know this because Agent 1 didn't say how many he would send out, the seller only knows that he said he would send out the cards.

Agent 2 is sending out 2500 cards-to the entire neighborhood and told the seller how many and where, does the seller assume that Agent 1 is doing the same, seller didn't know then to ask how many. Large difference in coverage and expense here.   

 

Did both agents bring sample postcards and flyers from past listings? 

Does the seller get an opportunity to see the quality of the advertising and marketing they will receive?  Agent 1 brought a few flyers, that Agent 2 had a binder filled with beautiful, high quality flyers and samples of past post cards, and left me with a stack of samples.  (I didn't want to hurt her feelings, I have a stack of her postcards in my kitchen drawer, I have been receiving them for years.)

 

Both agents said they would advertise my home in the local paper. 

Does the seller know that Agent 1 will advertise it for only 2 or 3 weeks?  No Agent 1 was the first interview - the seller didn't know to ask.  Agent 2 has a annual contract with the local paper and will advertise my home for the life of the listing.  Does the seller know the difference?

 

Both agents said they would put my home on the Internet. 

Does the seller know that Agent 1 considers the Internet sites that the MLS sends the listings to as putting the seller on the Internet and that Agent 2 spends days placing the listing on 20 or 30 or more sites, and pays for premium services for the sellers exposure?  Did the seller ask Agent 1, how many sites, which ones, how powerful are they? Or does the seller assume that Agent 1 is doing the same as Agent 2?

 

Both agents said they would put my listing on their websites. 

Agent 1 has a company issued website with a Google Rank of 0, does not advertise his site and receives little or no traffic from the website.  Agent 2 has a custom site, with lead capture and automated drip system, perhaps even a blog and/or an RSS feed or 2, and is constantly cultivating leads, showed the site to the seller on her laptop, brought them into the back end and showed them the stats, hits and lead generation system.  Does the seller know the difference? 

Part of the problem is that while both agents sounded like they provide the same service, the service is no where near the same.  Agent 1 glossed over details that many sellers do not catch or understand, while Agent 2 explained the details and numbers.  Some sellers may go back and ask Agent 1 for the numbers, many assume they are doing the same and the Agent 1's of the world slide by the radar. 

 

Gee, this also explains why there are so many expired listings these days!

There is no telling whether a seller will choose Agent 1 or Agent 2.  Those that choose Agent 1 stand a high chance of not selling but may get lucky, another agent might sell it after a couple of price reductions and with concessions.  They also may net less than Agent 2 quoted originally because;  they will sit on the market for a long time while prices decline.  Agent 2 will sell it, with a lot less stress and will more than likely end up netting you more money because you will not be chasing the market down.  Why?  Because it is priced properly and marketed to a wide audience.

 

You might want to read How to Hire the Best Realtor in Your Area

Traditional advertising and marketing, postcards, newspaper and magazine ads no longer provide the same punch they did in yesterdays market.  These are however, still expected by sellers.  They are very expensive.  Internet marketing and advertising is more effective.  With 80% of buyers searching for properties on the web it has quickly become the venue of choice.  However,  we are in between worlds right now.  Sellers still expect the traditional advertising and marketing along with the Internet punch and sometimes they are right, sometimes it still works.

 

Realtors are beginning to pull away from traditional advertising and marketing. 

Why do you think the news media is squealing so loudly.  Their revenues are down big time.  We are good business.  Buyers and Sellers are moving to the Internet for their housing needs. 

We Realtors are in a difficult position right now.  We are providing much more service now than ever before at a time when commissions are under scruitiny and are being challenged while expenses are up considerably.  Sellers do not want to pay the traditional commissions but do want and need the elevated services.

When we can move to a purely virtual world and possibly bring down expenses hopefully there will be more harmony between the consumers and Realtors.

 



http://www.longbeachrealestatehome.com/008FA4

Main Street Realtors Long Beach - Laurie Manny - Long Beach 
Realtor   

Laurie Manny

Long Beach Realtor®

(562) 212-5420

244 Redondo Avenue
Belmont Heights
Long Beach, California 90803

  • Buyers/Sellers/Investors
  • Homes
  • Condos
  • Income Properties
  • 1031 Exchanges
Long Beach MLS Search

Get Your Homes Value

Featured Listings

Contact Us

 

4161 Hathaway 46 Long Beach CA-Circle Area Condo - SOLD - I can sell YOURS too!

Long Beach Real Estate Search Engine Marketing Specialist - Laurie Manny 562-212-5420

Best Los Angeles Real Estate Agent Blog-Long Beach Real Estate Home

Posted on February 02, 2007 13:48:52 by Laurie Manny Professional Group
digg me Reddit newsvine del.icio.us Technorati Stumble Upon Toolbar
Print Laurie Manny Professional Group Email Send feedback »

No comment yet...

Comment on this article
Poor Excellent
  Line breaks become <br />


  Remember me


  Allow users to contact you through a message form.
Captcha image.

Please enter the characters from the image above. (case insensitive)

This post has no comments awaiting moderation.

 

To begin your search for the perfect home or to sell your home in the Long Beach area, begin your journey by calling Laurie Manny at (562) 212-5420.