What Are You Paying For In Your Real Estate Commission?
I can't tell you how many times I've heard people say that they won't hire a real estate agent because agents don't do anything for their money. Their belief is that real estate agents earn way too much money for the amount of time they put into selling a property.
What these people need to understand is that agents don't sell their time.
Agents sell RESULTS.
When an agent sells a house, the seller owes a commission. But if an agent fails to sell the house, the agent gets paid nothing. No results, no commission. Very simple. Very fair.
Now, if agents sold time rather than results, there would be a different scenario. Imagine how a seller would feel if at the end of a listing period the house was still unsold, but the agent knocked on the door and presented the seller with a bill for his and his company's time investment and out-of-pocket expenses incurred for unsuccessfully marketing the property. "Not fair!" the seller would lament. "You didn't get my house sold! You didn't get the result I wanted!"
I wonder if the people who won't hire a real estate agent because they think agents earn too much money per hour have the same outlook toward hiring other professionals? Do they ask their physician how much money per hour he earns to do brain surgery? Do they select their attorney based on who has the lowest hourly rates? Do they look for a CPA who advertises that he'll do taxes fast and cheap? Of course not. You hire the professional who will do the best job of saving your life, keeping you out of jail, and helping you pay the lowest amount of taxes --and the fees they charge are the fees they charge, and you pay those professionals on an HOURLY basis.
Realtors are the only professionals I can currently think of that get paid based solely on successful results. If the results are successful, how can the fee be too high? Remember, time spent on a project is not a benchmark of professionalsim. Results are the only benchmark that matters. Think about that the next time you have to pay a real estate commission, especially if you get a fast sale.
For more information on real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
What these people need to understand is that agents don't sell their time.
Agents sell RESULTS.
When an agent sells a house, the seller owes a commission. But if an agent fails to sell the house, the agent gets paid nothing. No results, no commission. Very simple. Very fair.
Now, if agents sold time rather than results, there would be a different scenario. Imagine how a seller would feel if at the end of a listing period the house was still unsold, but the agent knocked on the door and presented the seller with a bill for his and his company's time investment and out-of-pocket expenses incurred for unsuccessfully marketing the property. "Not fair!" the seller would lament. "You didn't get my house sold! You didn't get the result I wanted!"
I wonder if the people who won't hire a real estate agent because they think agents earn too much money per hour have the same outlook toward hiring other professionals? Do they ask their physician how much money per hour he earns to do brain surgery? Do they select their attorney based on who has the lowest hourly rates? Do they look for a CPA who advertises that he'll do taxes fast and cheap? Of course not. You hire the professional who will do the best job of saving your life, keeping you out of jail, and helping you pay the lowest amount of taxes --and the fees they charge are the fees they charge, and you pay those professionals on an HOURLY basis.
Realtors are the only professionals I can currently think of that get paid based solely on successful results. If the results are successful, how can the fee be too high? Remember, time spent on a project is not a benchmark of professionalsim. Results are the only benchmark that matters. Think about that the next time you have to pay a real estate commission, especially if you get a fast sale.
For more information on real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 3:54 AM
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