The John Henderson Blog

When I saw the headline Cutting your Agent’s Cut in the Los Angeles Times Business Section on Sunday (the article has a different title in the online version) I could feel my blood start to boil. How dare they put together a “how to” telling sellers how to take advantage of the people I spend most of my time working with (and for)? But then, my wife mentioned going out to brunch, and it was my only Sunday off for a long time, so I abandoned the paper, made a mental note to check it out later, and headed out in hopes to beating the rain.

I made a good choice. The food was great, and now that I’ve read the article, I find the title to be a bit misleading. While the article purports to give readers the inside scoop on how to negotiate an agent’s commission down from the standard 6%, I found that the article made strong points for paying full (or close to full) commission for an experienced agent’s services and expertise. There was even a discussion of the pitfalls of using an agent who offers steep discounts on his or her commission, noting that these agents often want to move houses quickly and at prices far below market, meaning in the long run sellers who use these agents lose money on the price of their homes.

Clearly, times are tough for many people. Lots of homeowners are feeling pressure to sell their homes, and home prices are still very flat. People are looking to cut costs wherever they can. But, a good real estate agent is worth his or her weight in gold. Good agents know their markets, price homes fairly, and work hard to sell homes. If you’re making a listing presentation to a seller who’s asking you to cut your commission, look for areas of compromise. Maybe you can cut it down by a fraction (.5%). Or, maybe you can include a home warranty for the buyer, or offer some other add-on service that will provide extra value to the sale.

While we all feel pressure to take jobs/listings that are offered to us, if you sense from the start that the relationship with a seller isn’t going to work out, then maybe it’s better to walk away at the beginning. There’s nothing more frustrating that putting a lot of time, effort, and money into selling a home that won’t sell. One change many of us need to make is in determining where we’re going to put our energy. I look at where the biggest pay-off will be. If I don’t see a way to make it work from the start, then maybe it’s not the project for me, regardless of how good it looks initially.

Check out the article. After you get past feeling irritated about the title (which is different in the online version of the article), you may find some information you can use to help you do business a little differently, and maybe a little better.

As always, if you’re interested in starting, or advancing your real estate career, check out the offerings listed below. Remember, the holidays are almost here, and real estate classes make great gifts.

If you’re interested in getting your real estate license, or advancing your real estate career, take a look at the following links on the Real Estate Centre website, or call my office at 310-410-9718.
To find out how you can start a career in real estate, check out the Real Estate Centre’s Jump Start Program program. This program includes the courses required for a real estate salesperson license, along with our one day exam prep class.

If you’re a licensed real estate sales agent, and want to make use of the current slow conditions to get a broker’s license, the Real Estate Centre offers a variety of courses to help you achieve the goal. Find everything you need at the following link: Broker’s License Courses.

Need to take your salesperson or broker exam, and just don’t seem to get around to it? Enroll in our Exam Prep Class. Over 90% of our students pass their real estate licensing exams, on the first try.

Whether you’re new to real estate, or you’re a sales agent ready to become a broker, the Real Estate Centre has a program for you. Take a look at our course offerings. Or, give us a call at 310-410-9718 and let us customize a program to meet your needs.

http://www.latimes.com/business/la-fi-cover-homeselling6-2009dec06,0,2270963.story