{"id":13347,"date":"2021-02-04T02:12:20","date_gmt":"2021-02-04T02:12:20","guid":{"rendered":"http:\/\/channels.realty.com.au\/reuncut\/?p=13347"},"modified":"2022-04-08T17:06:47","modified_gmt":"2022-04-08T07:06:47","slug":"are-agents-worth-the-commission-they-get","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtyuncut\/are-agents-worth-the-commission-they-get\/","title":{"rendered":"Are agents worth the commission they get?"},"content":{"rendered":"

How hard can it be? \u00a0 Bang up a sign \u2013 whack it on the internet and watch it go.\u00a0 If it was that easy people would be selling their own property in droves but here is why it does not happen.<\/p>\n

1. An overpriced property will miss 50% of buyers<\/b><\/p>\n

As professionals who are well-versed in the market, agents know that just because you spend $10,000 updating something does not mean you will get $10,000 more for the home when it sells.\u00a0 I have lost count of how many times I\u2019ve encountered homeowners with 10-year-old carpet, a dated interior, poor presentation, and clutter everywhere who think their home is worth the same as the one nearby that is well presented, freshly painted, and appealing to walk into.\u00a0 \u201cBut ours has a lovely lived-in feeling!\u201d\u00a0 Pricing a property right is an art form that many real estate agents spend years mastering, and even then it\u2019s something that many will hone their entire career. Most sellers want more than what their property is worth to start with and that is where, over time, agent education about price expectation is priceless.\u00a0 That leads me nicely into my second reason.<\/p>\n

2. Emotional attachment is a barrier<\/b><\/p>\n

Selling a home is an\u00a0emotional transaction\u00a0for the owner. Most sellers have a hard time separating their\u00a0personal feelings from the business transaction. \u00a0 Think about it. How do your clients react when you bring them a\u00a0low offer<\/a>? They\u2019re insulted, right? Now imagine their reaction if someone tells them their house\u00a0smells musty or like pets. \u00a0 As agents, we can be a buffer and use the situation constructively. \u00a0 That could mean the difference between selling and not selling.<\/p>\n

3. Marketing is a huge undertaking<\/b><\/p>\n

There is no such thing as \u2018one size fits all\u2019. \u00a0 Professional agents have an eye for what will attract the eventual buyer.\u00a0 What should be featured in the marketing.\u00a0 How best to describe\u00a0 and represent it and they tailor-make marketing campaigns to appeal to the right buyer group. It\u2019s not a skill learned overnight.<\/p>\n

There\u2019s a lot more to selling a home than meets the eye, and most listing agents earn their keep by dodging bullets and\u00a0avoiding common obstacles. \u00a0 That is called experience and that is why you are paid a commission.<\/p>\n

4. The third person<\/b><\/p>\n

There is a reason why sellers need to get lost when buyers are present.\u00a0 It is because most can\u2019t help themselves and they want to take over the agents job.\u00a0 Sometimes it is not what you say it is how you say it and knowing when to speak.\u00a0 Agents are also detached and can read the body language.\u00a0 Most of my buyer clients feel restricted when a homeowner is lurking during a showing.\u00a0 Without a third person in the mix \u2013 the agent \u2013 buyers feel uneasy and often feel like they cannot ask real questions for fear of insulting the owner.\u00a0<\/p>\n

5. What happens when someone wants to buy<\/b><\/p>\n

A lot happens after someone says they want to buy.\u00a0 Negotiation, contract, due diligence such as building and pest inspections, valuation, contract deadlines and then settlement. \u00a0 Sure a solicitor can do most of that but what you bring to the table is the ability to negotiate so that it becomes a win\/win.<\/p>\n

6. Agents get more net return for the seller<\/b><\/p>\n

There are some basic reasons why I feel comfortable making this statement:<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An agency has a number of potential buyers on their database as a result of recent inquiries for other properties. This provides an instant list of potential buyers for a property.

<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When they decide to buy a home, most people (87%) first turn to a real estate agent. In more than half the cases, they already know the agent and have built up trust.\u00a0 Buyers who decide to contact homeowners directly are rare. The remaining 6% choose to buy directly from the builder or developer.

<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Selling real estate is not a part time job.\u00a0 It takes up to 40 hours (my estimate) to sell a property.\u00a0 It also requires flexibility in hours so you can meet buyer demands and be available.

<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As a professional real estate agent, never underestimate your skill as a negotiator.\u00a0 As a third party you are able to remove all emotion and see it from both sides.<\/p>\n

The bottom line is that your commission is not the cost to the seller of getting a sale \u2013 it is the price paid for your expertise, market knowledge, and above all negotiation skills. \u00a0 Never undersell yourself!<\/p>\n","protected":false},"excerpt":{"rendered":"

How hard can it be? \u00a0 Bang up a sign \u2013 whack it on the internet and watch it go.\u00a0 If it was that easy people would be selling their own property in droves but here is why it does not happen. 1. An overpriced…<\/p>\n","protected":false},"author":176692471,"featured_media":14660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[141],"tags":[],"class_list":["post-13347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"\nAre agents worth the commission they get? - Realty UNCUT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtyuncut\/are-agents-worth-the-commission-they-get\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are agents worth the commission they get? - Realty UNCUT\" \/>\n<meta property=\"og:description\" content=\"How hard can it be? \u00a0 Bang up a sign \u2013 whack it on the internet and watch it go.\u00a0 If it was that easy people would be selling their own property in droves but here is why it does not happen. 1. 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