Flat Fee or Reduced Commission - What Are You Really Saving?

I've spoken to numerous home owners that spent months if not years trying to sell their home after bouncing around from Realtor to Realtor, and often a large part of what they were concerned with was saving 1 or 2% on the real estate commission. 

Now, the commission is surely the largest expense of selling, but I always ask these sellers this:

'By listing with a Realtor that agrees to cut their rate 1%, what are you saving when they don't sell you house after 6 months?  You are saving exactly 1% of zero - nada!  Plus, you have wasted your most valuable marketing time while you days on market (DOM) have risen - often stigmatizing your property.'

Not to mention that a properly exposed & marketed home will help sell a home for more - far exceeding any marginal reduction of commission.  So, before you focus on potential 'savings' - think about the cost of not working with someone that will earn their commission and get you a faster result and higher sales price.

---

By Zane Gerringer