Buyer's Guide » How Realtors earn their commissions
How Realtors Earn Their Commissions
Real estate agents, like many other professional selling agents, have come under criticism in recent years as to whether their commission fees are warranted for the service they provide. Do they really add value to a sale, or would homeowners be better off selling their homes on their own?
Selling a home is complex. It requires the expertise of a professional who understands the real estate industry and can follow through with an aggressive marketing plan to sell your home for its maximum value. Your REALTOR® can develop a comprehensive marketing plan that far exceeds anything you can create on your own. The Multiple Listing Service (MLS®) enables maximum exposure to buyers and their agents across Greater Vancouver and around North America. " The Realtor's access to MLS® is a key research tool that allows homeowners a competitive edge when selling their house,"says Dick Coates, Real Estate Board of Greater Vancouver president.
Some other value-added services your REALTOR® can provide include: open houses, agent tours, targeted newspaper listings, direct mail pieces, lawn signs, advertising on web sites, and other marketing activities. Besides covering the expenses of these marketing activities, your REALTOR® must share the commission fee with the real estate agency for which he or she works as well as the buyer's Realtor, if there is one.
Setting the price of your home is critical. It requires extensive knowledge, training and access to the latest market information. Are you really aware of the value of your house in today's changing market? Can you risk pricing your home too high and discouraging potential buyers - or pricing it too low and losing some of your equity? Your REALTOR® will prepare a Comparative Market Analysis (CMA) using advanced research tools to determine a competitive price for your home.
Realtors are experienced negotiators. Ask yourself: Are you able to make a follow up call with a potential buyer without placing yourself in a poor bargaining position? Realtors are skilled in arranging financing and closing deals; they provide undivided loyalty in protecting their client's negotiating position at all times.
Think of your REALTOR® as your real estate consultant, implementing marketing initiatives, advising you on market conditions and preparing your legal documents when drawing up a legally binding contract. Simply put, a Realtor's professional skills and networking connections can be indispensable in attracting serious, qualified buyers. The value-added service they provide when selling a home is well worth their commission fee.