Time and time again someone will ask me a question about a listing commission before they put their house on the market. Prior to signing a contract with a broker, a consumer is free to negotiate the best possible commission for themselves. There is no standard listing commission set by any organization or group related to real estate!!!
Any office or company certainly has the right to establish their own minimum commission rate. But again, the consumer has the right to negotiate that listing fee. If agreed to by both parties, marketing begins. If not, the client can continue to search out other brokers for a better deal.
A comprehensive marketing plan is critical for success and a client should demand one but here are some tips that will help you decide if the commission rate makes sense for you.
1. What is the coop fee? That is, what is the listing agent offering to the selling broker. Is it high enough that it will entice agents to show your property?
2. Is your home going into the Multiple Listing Service? That’s the main resource for all brokers to share inventory.
It’s now totally online.
3. Does the company have a website that will predominantly highlight your home?
4. Does the agent have his or her own website that will draw buyers to your home?
5. Are the websites syndicated, that is, is your home going to outside vendors like Realtor. Com, Homes. Com, Trulia, Zillow?
6. Will the agent incorporate standard belly rubbing prospecting venues, like open houses, newsletters, broker invites and networking groups? Forget the newspapers…nobody gets them anymore anyway.
7. Does the agent have a good relationship with important vendors that will facilitate an easier sale? For example, mortgage companies, home inspectors, title companies and contractors.
8. How long has the agent been in the business? Newbie (6months-year), Veteran 1 year plus. Yes Virginia age and time in grade does mean something.
9. Does the agent have a Smartphone or iPad or both? If they don’t have at least one, forget them. They will never get back to you or a new customer fast enough.
10. Is the agent full time? What I mean, is this the only job he or she has? If it is, they are supporting themselves and they are probably hungry and are going the extra mile to make the deal happen.
This sure isn’t the be all end all list of what to look for, but it will give you something to think about when the agent tries to justify their fee.
Give me a call or email me if I can help. I am looking for new customers.