Commissions As mentioned previously, the quality of the agent you choose could affect your sales price of up to fourteen percent. When comparing the results of discount agents versus high-quality full-service agents, the difference can clearly be seen and felt in the average price per square foot received at sale. From a pure business standpoint, the amount that an agent will net from your sale is proportional to the budget (both in time and dollars) that an agent can dedicate towards your sale. It’s a hard truth, but it just makes sense.
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Furthermore, understand that the commission which you and your agent agree upon is split between your agent/ broker and the buyer’s agent/broker. Therefore, any reduction in commission will likely reduce the buyer’s agent’s commission as well, potentially affecting the number of showings you receive. A quality agent will provide the resources and expertise to reduce your upfront costs, as well as negotiate to secure a higher price and better terms. If paying one to two percent more in your listing fee nets you as much as five to fourteen percent more in your sales price, is that a service worth paying for? You don’t want to be jumping over dollars to save pennies.
THE SMART SELLER
