Read below before you talk to any real estate agent.
- Are you looking for a professional agent who is friendly or are you looking for a friendly agent? Huge difference. The friendly agent will try to first become your friend (by paying for lunches/dinners, gifts, taking you out and around...) so you will feel uncomfortable asking questions, negotiating their commission, or firing them. Nobody likes doing that to friends, right? I mean do you get the same behavior from other "professionals" like doctors, attorneys, CPAs...? Are they trying really hard to be your friends? If you are looking to meet a new friend who happens to be an agent, then everything I am discussing below is irrelevant. If you are looking for a professional to hold accountable for his/her services then please read on.
- If you still believe only an agent who lives or sold in your building or neighborhood can do the job, then you are wrong at the tune of 5% or more in commission. The fact is, any good agent can sell in any building or neighborhood so long as the unit or home is priced properly and all showing requests are accomodated. Furthermore, an agent who has many units or homes listed for sale in your building or neighborhood has made the same promise to your neighbors: "I will work hard to sell your unit/home at the highest price". Really? How can this agent promise the same thing to multiple owners who are essentially competing with each other to sell? How can this agent be more aggressive with your property when he/she has other units/homes from your neighbors to sell too? A good outside agent will be more motivated to work harder to sell your property and with your help will know all the selling points of your building or neighborhood in less than one hour. Remember, none of these agents who sold in the past in your building or neighborhood were born with the knowledge. A seller who believed in healthy competition hired them to sell their first unit in the building or neighborhood. Competition is good for everybody.
- Does your building allow courtesy keys to be given to buyer's agents to show? Will your agent put a lockbox on your home for easy showings? If yes, why are you paying 5% or more in commission when your agent is not even going to be there to show your unit/home? Seriously, do you even know if your agent will take the easy way out and not even show up to turn lights on, open blinds and do other things to show your home or condo in the best way possible? Remember, you only get one first impression with buyers...
- What are you getting for the 5% or more in commission that you are allocating for the agents? Sadly, we all check the $150 restaurant bill to make sure that we did not get over-charged; but sellers seldom bother to question what they are really getting for the thousands of dollars in commission they are allocating to agents...
- "Commissions of 5% or 6% are standard!" If an agent tells you that, he/she is lying and in violation of US Federal anti-trust laws that dictate that commission cannot be fixed by the industry. Every agent/broker can negotiate their commissions with sellers and buyers as low or as high as they want to. This law encourages healthy competition to protect consumers (buyers and sellers). So why are you still paying 5% or more in commissions? Most agents will tell you all sorts of little lies to justify their high commissions and have absolutely no accounting to show you why they need to charge 6% in commissions. When you get a doctor or hospital bill don't you want to see the detailed charges or would it be ok if they charged you 6% of your wealth? Shouldn't agents charge based upon estimated time and expenses involved in showing, marketing, and performing the required functions to sell your property? Why would the commission to sell a $200,000 home or a $2,000,000 home be the same 6%? Do you think the $2,000,000 listing agent is working much harder? Think again.
- "I will represent your best interest and negotiate to get you the highest price!" Really? Unfortunately most agents lead you to think they are representing you, when in actuality they made you sign a listing agreement that contradicts that promise. Most sellers do not read or understand legal terminology and assume the paperwork their agent make them sign reflects the verbal promises of the agent. Big costly mistake. Also, remember that ultimately the final price is set by what you (the seller) agree to accept and what the buyer agrees to pay. You are negotiating with the buyer, indirectly through the agents who are messengers and advisers.
- Many sellers and especially foreign sellers make the very big mistake of hiring agents because of personal considerations that have nothing to do with the qualifications of the agent. It is not because that nicely dressed smiling agent speaks your language or is related to you, that he/she is best qualified for the job.
- The agent who helped you buy your home or condo may not be the best agent to help you sell the same home or condo. Often, when the time comes to sell, many owners call the same agent who sold them the unit without realizing the major differences between a listing agent and a buyer's agent. Anybody can show units to buyers and help them make an offer on what they like. It takes a whole different set of skills to be a good listing agent and properly market your property.
- "Our office is 5 minutes from your condo/home." That may seem like an advantage, but actually real estate should be shown by appointment. There is no such thing as having to show in 5 minutes or the buyer is gone forever. Be very concerned if your next agent is just going to show your home or condo to anybody who calls to see it. Thieves, scammers, and unqualified curious people use agents to gain easy access to the homes and condos of unsuspecting sellers. Please keep in mind that 99% of agents do not have private offices in their broker's office but work from home and their car. All agents are trained to use the little lie that "their office" which is actually their broker's office is nearby to convince sellers to list with them. There is absolutely no advantage in hiring an agent from a nearby real estate office, the internet has made real estate offices mostly obsolete. (Read my next point)
- Technology has made the buying process a lot easier for buyers. Over 90% of buyers today identify the home or condo they will buy via the internet. The fact that the listing agent lives in the building or community or in another town, or his/her office is across the street or 50 miles away is irrelevant. Any buyer looking in your area and price range will find your home or condo and will be able to see it on a multitude of websites. The internet has made expensive ads in magazines and newspapers obsolete. Yet, many sellers are wrongly convinced that these print ads are necessary. The internet has simplified the listing agent's job and made it much less costly. Wouldn't you expect the savings to be passed on to you in the form of lower commissions?
Contact me if you are looking for honest and professional representation with your next home or condo sale. I am very competitive, aggressive and very efficient and that is why I can charge low commissions yet provide full real estate services without compromises. With my team you get more while paying less.
Waterfront Specialist serving the coastline from Palm Beach to South Beach
Founder of TheBestWaterfront.com & EliteWaterfront.com
Master in Real Estate, University of Florida
Member of Who's Who in Luxury Real Estate
Member of the Institute for Luxury Home Marketing
Certified REO Specialist (Foreclosures/Bank Owned)
Certified in Short Sales and Distressed Properties
RE/MAX Sun & Sea
Direct (561) 929-9955 or
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