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When you are ready to sell our house and just met with a Realtor you might be shocked by the numbers on the net sheet they include with their presentation. Let’s look at the facts…the greatest expense when selling your home is that one line…COMMISSION!

Before you have a panic attack let’s talk about another fact…the time and expense your Realtor is about to embark on to market your home is not guaranteed to be compensated to them. Your house could potentially not sell due to any number of factors including price, location, condition, market, etc. Your Realtor is taking a risk in spending their own capitol on marketing your house with no guarantee of it selling and getting paid.

Let’s look at another fact…behind the scenes. Your Realtor is spending valuable time and resources prospecting for buyers and other Realtors with buyers. He or she (if they are like me) is making phone calls, knocking on doors, sending out mailers, holding open houses and paying for social media advertising to generate traffic (buyers) to sell your house. The countless hours spent on these efforts are all without guarantee.

You might even be thinking, “I should check with another Realtor to see if I can pay less commission to sell my house.” Just imagine working your full-time job and your employer says to you, there is no guarantee you will be paid for your work. And, you know, I’m just going to transfer your job to another person who will do it for me for a cheaper salary. Do you feel your time and skills are work that paycheck? Because you are worth that paycheck then you will find a company that will pay you what you’re worth. I am the same way, the commission is a representation of what my time and skills are worth to you.

Let’s talk about another important fact…the agent that charges you the least amount of commission will be more likely to spend very little time actively and aggressively marketing your house to sell it. That agent will also be more likely to negotiate a lower price for your house leaving you with less money in your pocket. Agents who charge less commission are less concerned with the quality of buyers than they are about the quantity of their listings.

Ok, here’s the last fact for today…commission is shared with cooperating agents who bring buyers with offers. Commission is also shared with the Broker’s involved in the transaction. Don’t forget about the IRS, they want their cut too! Add all this up along with the marketing costs and the Realtor is only left with a percentage of the total commission to support their family.

Here are some questions to ask about commission before listing with a Realtor:

  1. What percentage of this commission is budgeted for marketing my house?
  2. Where is the greatest money being spent on advertising my house for sale?
  3. What will you do besides spend money to market and sell my house?
  4. How is commission split? Co-operating agents split, Broker split, marketing budget, business expenses, taxes, etc.

This will be an eye opening experience and will help you understand the value of hiring the right Realtor to represent you to sell your house.

Who do you want working for you? A quality Realtor or a discount agent?

Call or email me for your personalized needs analysis and marketing strategy. I look forward to hearing from you.


Cheers to your success!

Brandy Christensen, Realtor / CA BRE#01971181 / Keller Williams Realty

M: 916-600-1239 / E: brandy.christensen@kw.com