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What is your agent worth?

 

Does it make sense to pay a full commission to our real estate agent in today’s market?  Sellers, buyers and even agents are debating what should be charged to assist a consumer in completing a real estate transaction.  Forget what the actual amount of the commission is.  The bigger question is whether you should pay a “full fee” when hiring a real estate expert to guide you through the complexities of today’s rapidly changing housing environment.

 

If a full fee was the rule in 2006 when completing a deal was so much simpler, why would you now consider cutting the fee of your agent in today’s tumultuous market?  You are depending on this person to help you reach your goals in a sale or purchase.  In 2006, buyers were willing to pay almost anything to a seller just to get into a home.  Banking entities seemed to be willing to mortgage any property for any buyer.  The process was rather simple.

 

Today, a person looking to buy or sell should be willing to pay a full fee for two reasons:

 

1.  You need an expert guide if you are traveling a dangerous path.

 

The field of real estate is loaded with land mines.  You need a true expert to guide you through the dangerous pitfalls that currently exist.  Finding a buyer willing to pay fair market value for your home at a time where there are mass inventories of foreclosures and short sales will take a true real estate professional.  Finding reasonable financing can also be tricky in today’s lending environment.

 

Experts in any profession do not discount their fees; especially when the job is becoming much more difficult.

 

2.  You need a skilled negotiator.

 

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars.  Each step of the way – from the original offer to the possible re-negotiation of your offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

 

Remember:  When an agent negotiates their commission with you, they are negotiating their own salary – the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table.  If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? 

 

Bottom Line

 

You get what you pay for.  Just like a good accountant or a good attorney, a good agent will save you money – not cost you money!