• Tom Richards

Full service, Full Commission Don't race to the bottom.

Racing to the bottom when negotiating your commission is the kiss of death. Agents who consider themselves full service Realtors should be happy to ask for and stand strong when asking for a 6% commission. I know that I have personally learned many hard lessons trying to save money choosing a cheaper service. We all know that you almost always get what you pay for.

We help our clients navigate through difficult and sometimes very challenging situations with one of the most important transactions they will complete in their lifetime. If you have done your homework and you really do intend to function as a full service Realtor don't be afraid to ask for what you are worth and stick to your guns.

A full service agent answers their phone, they spend money speculatively hoping their deals will close. They work weekends and holidays and accommodate client schedules forsaking their own at times. Family needs are often re-prioritized and Realtor family members soon realize that plans are always "flexible".

Considering that many deals that go into escrow never close, clients need to realize that for every deal that closes there might have been 3 or 4 that didn't. Everything a full-time self employed agent does on a daily basis is in some way connected to each transaction.

So when half of your commission is usually going to the other side, agents who agree to 4 and 5 percent commissions are only demonstrating that they are not the best negotiators, they don't value their own contributions to their client and they little by little devalue every agents perceived value in the eyes of the public.

6% has been the established fair value for many many years, regardless of a properties value. I suggest that those that know what they are worth, ask for and stand strong when negotiating their commission. Don't be afraid to make it clear that you are a 6% agent. If we can expect to pay servers 20% on every bill, we should be able to do the same in real estate by setting the right expectations and delivering everything the client expects and deserves.

If you plan to deliver sub par services, do the right thing and ask only for what you are worth. Otherwise, advertise and make it clear that you deserve 6%.

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