Mistake 16 – Paying Too Much Commission

TOO MANY SELLERS PAY FAR TOO MUCH COMMISSION. The most important point is what you get for the commission you pay. If you get a lower price than the agent quoted you, then you should not be paying any commission. The wrong agent can do tremendous damage to the value of your home. Some agents not only get lower prices, their lack of competence can cause your home to be sold for a lower price. And many of them charge high commissions. These agents are bad value at any price. The most important qualities in an agent are honesty and good negotiating skills. Honest agents are prepared to prove themselves by not charging until after your home is sold and you are satisfied.

 

Your Solution…

THERE ARE FOUR FACTORS WITH PAYING COMMISSION about which you should be very careful. The first is paying money in advance. Don’t do it. The second is being asked to sign anything which requires you to pay if your home is not sold. Don’t do it. The third is an agent who agrees to give you a discounted rate before your home is sold. If the agents discount their own price you can be almost sure they are going to discount the price of your home. Be careful. If you want to negotiate the amount of the commission, do it at the time of the sale, not at the time when you hire the agent. Fees charged by agents are negotiable, no matter what they tell you. Just stay focused on your net price. The fourth factor is called the Bonus Fee. On the surface, it seems fair. It means you pay a “bonus” if your home sells for a higher price. Don’t do it. Just pay a standard set rate AFTER you are happy with the price and the service.

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