Most people are wrong about real estate commissions. They think that all agents are the same. So they choose the cheapest one. They think it is a saving. If the fee is low and the pro charges more, they choose the discounter. They calculate saving a few thousand. This is dangerous math. The discount broker costs you the most in the end. Why? Because they sell your home for less. The difference in your sale price dwarfs than the commission difference.
Use logic. If an agent cannot negotiate their own money, how can they defend your money? They won't. They fold straight away. When a buyer offers low, they advise: "You should sell." They want the quick sale. They don't fight. A pro fights for every dollar. We are professionals.
I see sellers in this market drop tens of thousands to save $4,000 in fees. It is tragic. You sell your home once. The goal is the peak. Commission is a cost of sale. By achieving $20,000 more, even with a higher rate, you are $15,000 better off. Look at the bottom line. Focus on what you keep, not the expense.
The Difference Between Cost And Value
Know the gap between price and result. McDonalds and fine dining differ greatly. Salespeople are the same. Some just open doors. They upload photos and wait for the phone to ring. That is easy. That is not service.
A skilled agent builds value. We work the database. We style the home. We use psychology. Key point: we negotiate. If someone says "$600,000 is my limit", the amateur accepts. The pro knows they have more. That increase is your money. That is value.
Cheap agents need quantity. They need bulk sales to pay bills. They don't have time to negotiate properly. You are a transaction. I take fewer clients. To work harder on your result. My fee allows me to do the job properly. Don't hire the busy fool.
Why The Best Negotiators Charge More
It isn't shouting. It is a science. Knowing tactics and staying calm. Reading people. It is creating FOMO. A good negotiator can make a buyer increase their offer against themselves. We use competition to drive the price up.
This skill takes years to master. It is valuable. You are hiring an agent for this skill. Not for the photo. We are there to negotiate. If they are untrained, money evaporates. They lower expectations rather than negotiating. Easier to lower price than to push a buyer. Bad agents lower price. Great agents lift buyers.
Ask the agent: "Give me an example of a recent negotiation." Watch them. Should they say "It sold quick," be careful. You want to hear "The offer was $500k, I worked them to $530k." Hire that one. I fight for you. I guarantee it.
Understanding Advertising Costs
Cheap agents often offer "free marketing." Attractive? Wrong. Nothing is free. When it is included, they cut corners. Basic listing. You get iPhone photos. Basic board. The reason? it is coming out of their pocket. They want to spend less.
For the best result, you need exposure. Premiere listing on RealEstate.com.au. Drone shots. Floorplans. Facebook boost. It is an investment. But it finds more buyers. Volume creates price. Bidding wars = profit. If you save $1,000 on marketing and lose a bidder, you might lose $10,000 in price. Not smart.
I recommend investing in marketing. We do it right. We go big to find the buyer. Your house. Give it the best chance. Don't be invisible to save a few dollars. Marketing works.
The "Buying The Listing" Trick
A dirty tactic of cheap agents promising a high price. They say you will get a huge price when reality is lower. They do this to flatter you. You sign with them out of greed. Later, it doesn't sell. They blame the market. They ask for price drops to where it should be. And you sell for $600k after wasting time.
You chose the fake. The honest agent who was accurate was rejected. Be smart. If an agent promises to be true, be suspicious. Show me the sales. If they can't, it is a lie. I value correctly. I base it on facts. I might be lower, I achieve it. We beat it via strategy, not by lying at the start.
Protect yourself. There are tricks. Look for integrity. Select the person reality, not what you want to hear. That is the partner who will actually sell your home for the max.
The Interview Checklist For Sellers
In the appraisal, quiz them:
1. Explain negotiation.
2. Prove your results.
3. How do you handle learn more details multiple offers?.
4. Why is your fee higher/lower?.
5. What is your marketing strategy?.
How they respond will tell you everything. If they are unsure, next. If they are sharp, sign them. If they discount without a fight, reject them. If they fold, they will cost you.
Grill me. I love the interview. I am ready. I am confident. Choose Brad Smith. Not because I am cheap, but because I am the best. And the best costs nothing with the final price.