I received a call from a potential home seller a few months ago. “Joe” interviewed me about professionally marketing and selling his La Quinta home. The next month I noticed that Joe’s home was listed on the MLS with another local agent, so I called Joe to get his feedback on why he didn’t list his home with me. Joe told me that he choose agent “x” because that agent offered him a discount on his service fee.
“How’s that working out for you Joe?” I asked. Well it turns out Joe was not happy with how his home was being marketed and he had already decided to cancel his listing the next day. Joe has now agreed to list his home with me when he returns to the desert this fall. But what went wrong with the discount agent?
Finding Qualified Buyers
Not every Palm Springs area real estate agent offers equal client services or experience. The average agent invests just $1500 annually in marketing and only completes seven transactions per year. That likely translates into them investing about $100 in marketing each sellers home that they place on the MLS.
On the flip side, top-rated realtors usually complete dozens of transactions per year and typically invest thousands of dollars in marketing each home that they sell. For most top agents, to discount their services they would likely need to reduce their investment in the marketing of your home. Does that make sense?
The Big Question For Sellers
If a prospective agent can’t successfully negotiate their own service fee with a prospective seller, how good are they going to be at negotiating with potential buyers in getting you the highest price possible?