When your home closes, where does the commission you pay go? Most real estate agents are taught how to discuss commission with potential sellers. I think it is always important to let a seller know how a company, an agent and possibly the other company is paid. Let's begin with the company. There of course is the advertisement, the employees that make the office work such as entering listings, ordering signs, answering phones, speaking to appraisers, making price changes, greeting potential clients who arrive to the office, ensure that the earnest money check is deposited and cleared and the list goes on. Many companies have relocation companies to interact with transferees and their counselors. Employees are trained to work with those counselors and families moving to our area. They may after-all be interested in your home and we want to be sure we are able to encourage them to work with us. Normally there is a sales trainer, an accounting staff and a highly skilled website coordinator and designer as more than 92% of buyers begin their search on the internet. Every office has a manager to guide agents.
Agents are independent contractors. The check at the closing goes to the company not the agent. The agent is paid their split after the closing. Agents pay the company for errors and omissions insurance and a franchise fee. The franchise fee allows a large company to take advantage of national advertisement which drives more buyers to your listing. The agent pays for his or her own gas, car maintenance, health insurance, retirement, closing gifts, additional marketing, professional photography should they chose that option, referral fees to out of town brokers, all personal equipment like laptops, cellphones and IPADS. Training and conferences are the agents responsibility as is mandatory continuing education.
Our company is committed to make your home competitive so the cooperative broker fee offered to the other real estate company is always in your favor so you do not lose a showing.
You may wonder why I would do a blog on this as most agents might shy away from discussing fees. I think you should know where your money goes if your home sells. When I attended a recent webinar by a top trainer, he said something I guess I never really thought too much about. How many people go to work every day and work 8-12 hours and often weekends without any assurance that they will get paid? They share their expertise, spend money with the belief that they will be successful and help the seller reach his or her goal - a sold home. I guess I am an optimist. I believe the good, full-time agents out there give their all and try to get your home sold.
I would encourage you to listen to the professional. If you are motivated, your home will sell. If you need to do some work, get it done! If a price reduction is in order, be positive and listen to the agent. If your home is not getting showings, there is a reason. You can't move on if your home is not sold. Homes sell every single day but the price has to be right. The home has to show well and who better to help you than the professional you hired?
Coldwell Banker Prime Properties