Pitfalls of Picking a Low Commission Realtor
When it comes to selling a home, one of the most important decisions a homeowner can make is choosing a realtor. While it may be tempting to go with a low-commission realtor in order to save money, this decision could ultimately end up costing you more in the long run. The Andreae Group prides itself on our knowledge, service and our clients overall experience. To deliver on those expectations we charge a fair commission rate that we split with the realtor that brings a buyer to your home.
If you're thinking of going with another realtor just because of their low rate, here's a few things to consider first:
Lower commissions often equate to lower levels of service. Low-commission realtors may not be as motivated to go above and beyond for their clients, as they are not earning as much money from the sale of your home. This can result in a less personalized and thorough service, which could ultimately impact the sale of your home.
A low-commission realtor may not have as much experience or expertise. Realtors who charge lower commissions may be newer to the industry or may not have the same level of training and experience as those who charge higher commissions. This could affect their ability to negotiate the best price for your home and get it sold in a timely manner.
A low-commission realtor may not have the same level of marketing resources. Marketing is crucial when it comes to selling a home, and realtors who charge higher commissions often have more resources to devote to marketing efforts. This can include professional photography, drone aerial views of your home and surrounding area, targeted online advertising, open houses and much more.
The commission charged for to the seller shared between the listing agent and the realtor that brings a buyer to your home. In many cases, the commission is split evenly so that, for instance, with a 6% commission, 3% would go to the listing agent and 3% to the buyer's agent. A lower commission means buyer agents may not choose to show your home to their client vs other homes with a higher rate. Even worse, your 'low commission agent' may not even split evenly, so your 4% commission may only provide 1.5% or less to a buyer's agent. If you want the most showings of your home, make sure you discuss and understand how the commission is distributed with your realtor.
Ultimately, while it may be tempting to go with a low-commission realtor in order to save money, this decision could end up costing you more in the long run. It is important to carefully consider all of the factors when choosing a realtor, and to not solely focus on the commission they charge.