There is a huge myth regarding real estate commissions. They think that all agents are the same. So they choose the discount agent. They think it is a saving. If the fee is low and the pro charges more, they go cheap. They think they saved $5,000. This is wrong. The low fee agent costs you the most in the end. The reason? The result is poorer. The gap in the final figure is often far bigger than the small saving.
Use logic. If they can't defend their own full fee, will they fight for your money? They won't. They fold instantly. When the heat is on, the discounter says: "Take it." They want volume. The last dollar doesn't matter. Brad Smith negotiates hard. Because we value our skill.
I watch vendors in gawler real estate miss out on huge sums to save pennies. It is sad. It is a one-time event. The goal is the peak. Commission is a cost of sale. If I get you a higher price, even with a higher rate, you win. Look at the bottom line. Look at the net, not the fee.
Price vs. Performance In Real Estate
Know the gap between cost and value. McDonalds and fine dining are not the same. Local agents are no different. Some are order takers. They list online and wait. Anyone can do that. Why pay for that?.
A professional creates competition. We chase leads. We manage the look. We write compelling ads. And most importantly: we close. When the offer is "$600,000 is my limit", the order taker writes it up. I know they have more. The gap pays the fee 4 times over. That is value.
Discounters need quantity. They need bulk sales to pay bills. They don't have time to spend time on you. You are a transaction. I focus on quality. 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's not fighting. It is a science. Knowing tactics and staying calm. Reading people. Using leverage. A master pushes the price willingly. We use scripts to get the max.
It is learned to get right. It is gold. You engage us for this reason. Not for the sticker. You pay us to talk cash. If your agent is weak, they will cost you. They will suggest you drop your price because they can't get the buyer up. It is easier to crunch a seller than to get more. Discounters reduce. Good agents build.
Interview question: "Give me an example of a recent negotiation." Watch them. Should they say "It sold quick," be careful. You want to hear "I created a bidding war." Hire that one. I love the deal. That is my promise.
Marketing Budgets: Who Pays For What?
You might hear "no marketing costs." Sounds good? Be careful. There is no free lunch. If marketing is "free", they spend the minimum. Bottom tier. Bad pictures. You get no signboard. The reason? it is coming out of their pocket. They save money.
For the best result, you need premium marketing. Highlight ad. Drone shots. Floorplans. Facebook boost. It is an investment. It casts a wide net. More eyes = more offers. Competition = higher price. Being cheap on ads and miss one buyer, the result drops. That is bad math.
My strategy is vendor paid marketing. No corners cut. We spend what is needed to sell well. It is your asset. Showcase it. Don't hide it in the dark to save a grand. It creates the result.
Beware Of Over-Quoting Agents
A dirty tactic of bad agents lying about value. They tell you you will get a huge price when reality is lower. The goal is to win the job. You sign with them out of greed. Later, it doesn't sell. They make excuses. They crunch you down to the real value. It sells low after months of stress.
You picked the cheat. The one who told the truth who said $600k lost the job. Don't reward lies. If it sounds too good way more than others, check the data. Where is the evidence?. No data, they are buying the listing. Brad Smith gives honest appraisals. Data leads me. I might be conservative, I hit the target. I get more with hard work, not empty promises.
Be aware. There are tricks. Look for integrity. Pick the agent the hard truth, not fluff. That is the expert who gets results for the max.
The Interview Checklist For Sellers
When interviewing, checklist this:
1. What is your tactic?.
2. Show me recent learn the basics overview sales.
3. How do you handle multiple offers?.
4. Why is your fee higher/lower?.
5. What is your marketing strategy?.
Their answers shows their skill. If they waffle, walk away. If they have a process, sign them. If they drop their fee as soon as you ask, reject them. If they fold, they will lose your equity.
Ask me. I love the interview. I have the answers. I deliver. Pick me. Not because I am cheap, but because I am the best. Excellence pays for itself in the end.