Andrew And Associates

What Everyone Should Know About
Real Estate Commissions

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Many people have no idea about real estate commissions. They don’t know what a real estate agent does or how he is paid. The more you know about commissions, the more likely you will be to select and work with the real estate agent that best meets your needs.

The first thing you should know is this… A real estate agent is paid by commission. That means he is not paid a penny until or unless a real estate transaction is completed. The agent will spend a lot of time and money on your behalf in anticipation of receiving payment after your real estate transaction is completed. All the money and time that the real estate puts out your behalf is at his own expense. Not too many people are willing to put out weeks of work and hundreds of dollars with no guarantee of payment. Real estate is a performance based job. You either perform or you don’t get paid. It’s that simple. That’s why it is so important to get a good agent.

There are several types of real estate agents. To maximize your time and investment, you want to work with a full time professional real estate agent. He will give you full representation at every step of the sales process. A full time real estate agent has a fiduciary responsibility to act in your behalf at all times, as if you were present. You really do want someone covering your back at all times and in all situations. Research shows that a full time real estate professional will close more real estate transactions for more money in less time. That’s right… you will make more money by hiring a good full time professional agent.

On the other end of the spectrum, there are discount real estate agents that will provide minimal or “limited” help in the sales process. They will list your home; perhaps put it on the multiple listing service. However, they will have no responsibility to represent you all the time. For example, they will spend no money in marketing your home on a regular basis. Some will not tour your home with potential buyers. Most will not negotiate for you to get top dollar for your home. You will be pretty much on your own.

You need to be aware that buyers are a lot more educated today. They spend hours researching homes on the internet before they even talk with a real estate agent. You must insure that your home is well presented in the various media that is available to today’s buyers. You must have a comprehensive marketing plan in place, if you are to maximize your return.

A good real estate agent will spend many hours, weeks and dollars in the selling process. The average buyer may look at dozens of homes before making a decision to buy. A good listing agent may spend over a $1,000 in the first week (after getting a listing) just to begin marketing your home. The first 30 days a home is on the market is the most critical. So, regardless of whether you’re buying or selling a home, you need representation by a full time professional agent.

Lastly, you must understand that real estate commissions are negotiable. They may vary from location to location and from one type of real estate to another type of real estate. For example, real estate commissions for a home may be different from commercial land. If you want to get maximum return on your investment in minimum time, you want to deal with a reputable full time realtor.

You must do your homework. Ask questions. Find out who the best real estate agents are. If you know someone that has recently worked with a real estate agent, ask about their experience. Ask what commissions are currently being paid to full time agents. You can’t afford to be bashful. Once you’ve done a little homework, interview two or three agents and choose the one that will best meet your needs.

Once you’ve done your homework and selected a good agent, don’t haggle over the commission. The only person that will loose will be you. The general public today is smarter than you think. When you work with discount agents, I guarantee that buyers will try to offer as little as possible for your home, after all isn’t that what “discount” is all about.

One final thought. As a professional real estate agent, I know how important it is for you to maximize your investment and time. This is also true of any good real estate agent. Once, you’ve selected a good agent, work hard with the agent to accomplish your goals. Develop a clear and continual communication so that both of you know what to expect from each other. Don’t do anything, real estate wise, without communicating with your agent beforehand. It will save you a lot of time and stress. A good agent is worth every penny of real estate commission you pay.

Do you have questions or need advice you can count on or just want to discuss this further?

Don’t waste any more time; pick up the phone and call me now!  I’m here to help!

I offer a five star guarantee. I appreciate your business, loyalty, trust and referrals. My goal is to provide the very best counsel and advice to meet your real estate needs. If I can assist you, a relative, friend or co-worker, please give me a call. I look forward to the opportunity to serve you.

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