Real Estate Fees: You Get What You Pay For

There is a huge myth regarding real estate commissions. They think that all agents are the same. So they choose the discount agent. They think it is a saving. If the fee is low and the other is higher, they go cheap. They think they saved $5,000. But this is false economy. The low fee agent loses you money eventually. The reason? The result is poorer. The lost value is much more than the saving in fees.

Consider this. If they give up their own income, how will they negotiate your house price? They can't. They roll over immediately. If a low offer comes, the cheap agent says: "It is a good offer." They need the turnover. The last dollar doesn't matter. A good agent pushes for more. We know our worth.

I witness owners locally lose $20,000 or $30,000 to save $4,000 in fees. It is sad. You sell your home once. The goal is the peak. Commission is a cost of sale. If I get you a higher price, and I cost $5,000 more, you make more profit. That is the net result. Count the cash in hand, not what you pay.

The Difference Between Cost And Value

There is a difference between price and result. A cheap suit and a tailored one are not the same. Real estate agents gawler follow the same rule. Some just open doors. They upload photos and hope. Anyone can do that. Why pay for that?.

A professional builds value. We work the database. We advise on presentation. We write compelling ads. Key point: we negotiate. If someone says "$600,000 is my limit", the order taker writes it up. The pro knows how to get them to $620,000. That increase is your money. That is value.

Discounters churn and burn. They need to sell 10 houses to survive. They are too busy to negotiate properly. They treat you like a number. I limit my listings. To work harder for you. My commission enables me to do the job properly. Don't be a number.

How Negotiation Skills Impact Your Pocket

Negotiation is not arguing. It is influence. Knowing tactics and staying calm. It is reading body language. Building pressure. An expert pushes the price willingly. We use competition to elevate value.

It is learned to get right. It is valuable. You are hiring an agent for this skill. Not for the sticker. You pay us to negotiate. If your agent is weak, you lose. They lower expectations because they can't get the buyer up. It is easier to crunch a seller than to lift a buyer. Bad agents lower price. Good agents build.

Ask them: "Give me an example how you negotiated." Watch them. If the answer is "It sold quick," be careful. Look for "I rejected the first offer." That is the winner. I love the deal. That is my promise.

Marketing Budgets: Who Pays For What?

You might hear "no marketing costs." Great deal? No. Nothing is free. When it is included, they cut corners. Bottom tier. Bad pictures. Small sign. Why? it is coming out of their pocket. They minimize cost.

To sell for a premium price, you need premium marketing. Premiere listing on RealEstate.com.au. Drone shots. 3D tours. Social media ads. It isn't cheap. It reaches more people. More buyers = more competition. Competition = higher price. Being cheap on ads and fail to reach someone, it costs you value. That is bad math.

My strategy is you pay for ads. Because then we control it. We go big to get the result. Your house. Showcase it. Don't hide it in the dark for a small saving. It creates the result.

The False Promise Of A High Price

Another trick of cheap agents lying about value. They tell you it is worth millions when it is worth $600k. Why? to get you to sign. You hire them because you want $700k. Once listed, no offers. They make excuses. They reduce it to the real value. It sells low after wasting time.

You picked the cheat. The honest agent who was accurate was rejected. Don't reward lies. If it sounds too good way more than others, check the data. Show me the sales. Without proof, they are faking. Brad Smith gives honest appraisals. Data leads me. I might be conservative, but I deliver. I get more via strategy, not false hope.

Protect yourself. Real estate is full of sharks. Look for integrity. Select the person reality, not fairytales. That is the partner who will actually sell your home for the max.

The Interview Checklist For Sellers

In the appraisal, quiz them:
1. Explain negotiation.
2. Prove your helpful information content results.
3. How do you handle multiple offers?.
4. Why is your fee higher/lower?.
5. What is your marketing strategy?.

Their answers reveals the truth. If they are unsure, don't hire them. If they have a process, sign them. If they discount as soon as you ask, don't hire them. If they give away their money, they will give away yours.

I welcome these questions. I love the interview. I have the answers. I deliver. Let's work together. Not on price, I get results. Quality pays for itself in the end.