Question: My aunt knows I’m interested in martial arts and real estate and that I follow your teaching. She asked me for advice on selling her house. I know most agents change either a 5% or 6% commission. But, I’ve seen a few agents that advertise a 3% commission. Don’t real estate agents make enough money, so why wouldn’t I go with a lower commission agent?
Answer: Most homes are actually sold, not by the listing agent, but by another agent called the cooperating agent. Start with the commission being split between the listing and selling office and then between the listing and selling agents. At 3%, you end up with each entity receiving less than 1%. This is not a lot of compensation. Therefore, fewer selling agents are interested in working with low commission listing agents.
Your job is to find the best-qualified listing agent who will attract the largest pool selling agents and their clients. To work with the best, usually cost more. You certainly don’t want to short change the very person who stands the best job of getting you the highest price with the least complications.
