Why 1% Commission Can Cost You $20,000

Most people are wrong about agent fees. People believe agents do the same job. They pick the cheapest one. They think they are saving money. If Agent A charges 1.5% and Agent B charges 2.2%, they choose the discounter. They calculate saving $5,000. This is wrong. The low fee agent costs you the most in the end. Why? The result is poorer. The gap in the final figure is much more than the saving in fees.

Consider this. If they can't defend their own income, how will they negotiate your equity? They can't. They roll over immediately. If a low offer comes, the cheap agent says: "It is a good offer." They want the quick sale. They don't fight. A pro fights for every dollar. We are professionals.

I see sellers in this market drop tens of thousands 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 win. That is the net result. Look at the net, not what you pay.

Price vs. Performance In Real Estate

There is a difference between price and result. A Kia and a Ferrari differ greatly. Salespeople are the same. Some just open doors. They upload photos and wait for the phone to ring. Anyone can do that. That is not service.

A professional builds value. We call buyers. We advise on presentation. We use psychology. Key point: we close. If someone says "$600,000 is my limit", the cheap agent believes them. The skilled agent knows how to squeeze. That increase is your money. That is value.

Budget brokers rely on volume. They must sell many to pay bills. They are too busy to maximize your price. They treat you like a number. I take fewer clients. To work harder on your sale. I charge correctly to serve you best. Don't hire the busy fool.

The Skill Set That Matters Most

Negotiation is not arguing. It is influence. Knowing tactics and when to shut up. Reading people. It is creating FOMO. An expert pushes the price willingly. We use competition to drive the price up.

This skill takes years to master. It is valuable. You employ me for this reason. Not for the sticker. You hire us to talk cash. If they are scared, money evaporates. They will suggest you drop your price because they can't get the buyer up. It is easier to crunch a seller than to lift a buyer. Lazy agents crunch sellers. Great agents lift buyers.

Ask the agent: "Show me of a recent negotiation." Listen to the answer. If they just say "It was easy," worry. You need "I created a bidding war." Hire that one. I love the deal. I guarantee it.

Understanding Advertising Costs

Cheap agents often offer "free marketing." Attractive? Wrong. There is no free lunch. If marketing is "free", they cut corners. Bottom tier. Bad pictures. You get no signboard. Because they are paying. They want to spend less.

To sell for a premium price, you need the best. Top spot online. Professional photography. Virtual styling. Facebook boost. It is an investment. But it finds more buyers. More buyers = more competition. Demand equals value. Cutting ad spend and miss one buyer, the result drops. That is bad math.

My strategy is vendor paid marketing. No corners cut. We do it properly to find the buyer. It is your asset. Light it up. Don't scrimp for a small saving. Marketing works.

Beware Of Over-Quoting Agents

A common scam of cheap agents lying about value. They promise your home is worth $700k when it is worth $600k. Why? to get you to sign. They get the listing out of greed. Then, it doesn't sell. They blame buyers. They ask for price drops to $600k. You get market value eventually.

You picked the cheat. The one who told the truth who said $600k missed out. Be smart. If an agent promises to be true, be suspicious. Show me the sales. If they can't, it is a lie. I value correctly. I base it on facts. My price might be less, I hit the target. We beat it through negotiation, not empty promises.

Watch out. It is a game. Find the ethical agent. Pick the agent the hard truth, not fairytales. That is the guide who will actually sell your home for the best price.

The Interview Checklist For Sellers

When interviewing, checklist this:
1. What is your tactic?.
2. Prove your results.
3. How do see the full guide you handle multiple offers?.
4. Why is your fee higher/lower?.
5. How will you find buyers?.

How they respond shows their skill. If they waffle, walk away. If they are confident, hire them. If they drop their fee 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 am ready. I deliver. Choose Brad Smith. Not because I am cheap, but because I am the best. And the best is always free ultimately.