Is Negotiating Commissions With Your Realtor the Best Strategy?

YES...But Not Until You Have Negotiated What Really Matters.

While negotiating commissions is certainly a part of negotiations with your Realtor, it is not the most important part of the negotiation.  Before you ever begin talking about the commissions being charged by your Realtor it is important to negotiate what really matters.  So what really matters? What really matters is making sure your home sells for the most money possible. Selling your home for "top dollar" should be more than just a sales line. 

These Services Should be Included But Unless Negotiated, Chances Are They Are Not

  • Professional Photography

Most Realtors think taking pictures with their phones a compact camera is acceptable. Why do I say most Realtors? Unless you are in a high end luxury home there is less than a 10% chance your Realtor will hire a professional photographer. Realtors are great at many things but they are not photographers. 

Why is good photography important? Over 90 percent of all buyers find the home that they end up purchasing on the internet. Buyers often times make decisions as to weather they want more information or want to visit the property based on the pictures. If pictures can say a thousand words you want to make sure the pictures used to market your home are saying the right words. Professional photography will increase interest and showing of your home ultimately helping your home sell faster and for more money. Remember, unless you negotiate professional photography as a condition of getting the listing chances are this service will not be included.

  • Showing Service

Showing Service is a newer service being offered to Realtors that is a true win win for both Realtors and their clients. The cost to your Realtor is about $30.00 a month for multiple listings. The service coordinates all showings with the home owner directly allowing your realtor to focus on selling your home.  There is nothing more frustrating for a showing agent then not being able to get ahold of the listing agent to schedule an appointment to show. Realtors are busy showing homes, meeting with clients and are not always available to take phone calls.  Homes with a Showing Service tend to be show more often and more showing usually mean more money for the seller. In addition to setting up showings the service also collects needed feedback to assist the seller with pricing and other needed improvement that may be needed to get the home sold.

  • Virtual Video Tour 

Virtual Tours are another way for Realtors to get additional exposure for your home. While the percentage of the people that click on the virtual tour may be low, those that do are important and are usually the most interested in the home. If you have many people buying homes from out of town in your market a virtual should will be very valuable to these buyers and some of these buyers will make a decision to purchase based on the tour without ever visiting the home in person. A virtual tour can present your home in a professional manor helping it stand out from the competition that will increase interest, showing and help improve your bottom line.

  • Aerial Photography

Most homes will benefit with the use of aerial photography adding another dimension to online advertising. With the use of aerial drones becoming more common this service is readily available and can really help your home stand out in a competitive market. Chances are this service will not be included unless negotiated with your listing agent before signing the listing agreement.

  • List Hub or Similar Service

List Hub is a service that puts your home a hundreds of addition websites exposing your home to a millions of buyers across the country and in your local market. It is a fast and effective way to get the word out immediately about your home being for sale.

Additional Selling Tips

  •  Never accept an offer on the first day the home is listed

It is usually not a good adea to accept an offer on the first few days a home is listed for sale.  Out of respect to the potential buyer we should respond to offers promptly but setting up the expectation in advance to when the offers will first be reviewed by the sellers is critical especially in a competitive market. All seller agents should be advised in advance that the seller will not review offers until the home has been listed on the MLS for (x) amount of days. This simple strategy can net the sellers thousands of extra dollars at closing.

  • Never accept an offer before the home has been listed on the MLS

Often Realtors have pocket listings of people that are preparing to sell or planning on selling but have not listed their home on the MLS yet. In this scenario the sellers almost always loose even when their agent reduces commissions to represent both sides of the transaction. Sellers often focus on the commissions they may be saving and not realizing they may be underselling their home by thousands, even tens of thousands of dollars. NEVER accept an offer until the home has been listed for sale on the MLS. 

By negotiating with your agent to include these services as well as others that may be important in your market, you will be focusing on what really matters to your bottom line. If you have questions or if I can be of help please contact me at www.UtahRealtyGroup.com