Paying The Agent To Work For You
We're All In The Sales Business
These days, if a person really wants to do well, they have to be able to sell themselves. That goes for just about every type of work endeavor and it is no less evident in the field of real estate. As you drive through neighborhoods looking for that special place that calls out to you, you will see a variety of signs planted on the front lawns of many homes. Often, the sign not only carries the name of the agency and the agent's name and number, but there is also a picture of the agent looking very helpful and easy-going. Recognition is important.
The Advantage Of An Agent
When it comes time to sell a home, it is a good idea to hire an agent to help with the process. House purchases are not for the faint-of-heart and even though you may have a friend who "sailed through the whole thing without an agent and without a hitch", that person is more likely the exception rather than the rule. Finding a good agent to work on your behalf is important, especially when it comes to the sales and marketing process.
The type of market you are dealing with will determine the need for help. For instance, if the market is a seller's market, then houses are sold almost before they are listed on a multiple listing service. The question is, will the seller get the best price for the house? In a buyer's market, then there are more properties available than people buying and homes often sit a long time waiting to sell. This is where a knowledgeable agent can be of great value with market expertise, advertising savvy and the extra work it takes to get the job done. Top prices are garnered from homes and properties that are exposed to a large number of buyers-they show well, they are priced well and they are marketed well.
You Know Your Agent Is Working For You When...
Agents in a competitive market take the time necessary to ensure their client's property is given all the advantages possible in order to make the sale. When a listing is made in the MLS and there are no pictures to accompany it, then it is almost a foregone conclusion that property will be passed over by other agents and buyers without so much as a second glance. Today, if you were to look through an MLS listing service on the internet, you would see many listings with up to a dozen photos showing the property. A listing agent who is working hard for you will likely hire a professional photographer to take photos that will be posted. Professional photographers can capitalize on lighting and angles and they can produce shots that accentuate the good points, cropping and resizing them to show the house in the best possible way.
Commission = Incentive
There are many other aspects an agent will handle for you to ensure your property sells for the best dollar. In order to get the most from your agent's services, it is important to remember that real estate agents and companies use their own money to advertise and market your property. If you've ever purchased advertising, you know it doesn't come cheap. If your agent is receiving a very low commission, then the incentive to put up a lot of money to advertise and market is reduced greatly.
Incentive applies to both the buyer's and seller's agents. A seller's agent who is earning a full commission will do whatever needs to be done and handle whatever challenges come his/her way to get the deal happening. If the commission is low, the incentive is low as well. Since there are usually two agents in any housing deal, if your listing agent drops his/her commission, it may well affect the buyer's commission which boils down to no incentive for the buyer's agent to get involved.
