What is the Consumer Objective When Hiring an Agent?

The consumer objective is to procure the agent who provides the most compelling value proposition. One who has the requisite skill and experience to achieve the consumer’s desired outcome while producing the highest qualitative and quantitative benefits. Essentially, consumers want to achieve optimal selling conditions and level of service at the lowest failure risk and fairest commission possible. My objective is to deliver clients that preferred experience.

What is a Real Estate Commission?

If you hire me to help you buy or sell real estate, I get paid through a commission - typically a percentage of the transaction price upon a successful sale. Rather than earning an hourly wage or annual salary like most bi-weekly paid employees, I am a business owner who earns a commission only when a transaction goes to settlement. The commission paid by the Seller is split between the Listing Broker (Listing Agent) and the Cooperating Broker (Buyer Agent), which is then subject to further splits between the agent and their respective brokers. Agents can invest several months of work with a client on business development, advisory services and transaction activities only to receive payment on the single settlement day.

The Four Cornerstones of My Commission

#1 - My Commission is Negotiable 

Despite what some agents may tell you, my view is commissions are always negotiable. Several aspects of a home sale are negotiable like price, deposit, type of financing, settlement date, or possible repairs resulting from a home inspection – it’s only fair that commission is also negotiable. My broker doesn’t determine commission, nor is it regulated by any federal or state agency. Commission can only be determined by me and the consumer.

#2 - My Commission is Transparent 

Transparency is the key to trust. My commission and how I’m compensated for my work are transparent to my client. Nothing is ever hidden or undisclosed. My commission is subject to a formal Listing or Buyer Agreement signed by my client.

#3 - My Commission is Competitive 

Competition arises when at least two agents strive to acquire a client who cannot be shared. I realize I’m not the only agent in town. Consumers are smart, educated and will always find their optimal value proposition. I work like I’m always in competition, regardless if a client comes to me as a friend, from a coveted referral, through my various marketing efforts or from a simple internet search. I treat all customer acquisitions as a competition and my approach never wavers. My compelling value proposition is one that combines a competitive commission with superlative service - no other agent will deliver a stronger value proposition in the sale of your home than me - the combination of commission, marketing, home selling price, days on market, contingency risk, level of service, contract protections and agent capability of maximizing seller gains and preventing losses. 

#4 - My Commission is Equitable 

I do not have a one commission fits all approach. Unlike other businesses, I don’t sell a product that I produced which sits on a shelf at a store waiting for a customer. If I controlled the production process and costs, then I would exactly know my price and could publicize it to consumers. The real estate you would like my help to sell or buy is my de facto product. However, I don't control the product - and the factors involved with trading the product between buyer and seller can be different in every situation. I find reaching a mutually agreeable, equitable commission with my clients is always simple and easy.

Tim's Blog: Read the Full Article Here