Melville Real Estate Vlog Ep. 12 | MGP Property Skip to main content

How to choose an agent…

Part 3: Beware of the “commission cutting agent”

Let’s delve into the third key area to consider when selecting a real estate agent: “Beware of the Commission-Cutting Agent.” While low agents’ fees may initially seem attractive, it’s essential to look beyond the surface and consider the impact on your net proceeds from the sale. We’ll explore why choosing an agent solely based on a discounted fee can be short-sighted and potentially costly in the long run.

When selecting an agent, it’s crucial to remember that securing listings is vital for their survival in the industry. Naturally, there is pressure on agents to land new clients, and many sellers are enticed by agents offering lower fees. However, what truly matters is the net price you will receive in your pocket once the sale is finalised. It raises an important question: If an agent is quick to discount their own fee, how effective will they be in negotiating the highest price with potential buyers?

The saying “You get what you pay for” holds true not only in real estate but in any industry. Just as you wouldn’t expect a world-class surgeon to charge the same as a local surgeon, there are varying levels of skill and expertise among Melville real estate agents. While a discounted fee might initially save you money, the real question is, what can you expect in terms of results from an agent who compromises on their fee? The cheapest agent often proves to be the most costly in the end, as a lower sale price can significantly impact your bottom line.

As agents, our success hinges on being highly skilled marketers and negotiators. When meeting with potential agents, pay close attention to their ability to display strong negotiation skills. If they are unable to demonstrate their expertise during your initial interactions, it could be a warning sign that they may end up costing you more than they save. It’s essential to consider the long-term consequences of selecting an agent solely based on a discounted fee without evaluating their overall capabilities.

While it may be tempting to opt for the cheapest option, keep in mind that a lower sale price can ultimately have a more significant impact on your financial outcome. Don’t underestimate the value of a skilled negotiator and marketer who can effectively represent your interests. Join us next week for part 4, where we’ll continue our exploration of the key areas to consider when selecting the right real estate agent.

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