THE LOW FEE REALTY COMPANY
Let's get one thing straight here before I begin. There is no set amount for Real Estate fees. There are no "standard" fees, therefore there is no such thing as a "discounted" rate. Every Real Estate Agent can charge whatever they want. There is a "prevailing" and there are higher or lower fee's.
Low fee Realty companies have been around as long as all Real Estate companies have. Just like all other products or services in the world, what appears to be the same product or service, has a lower price and a higher price. Since these low fee companies have been around for so long, why then, do they still have a small percentage of the market ? Why then, have they never significantly increased their market share ? They claim to provide the same service...
YOU GET WHAT YOU PAY FOR!
Have you ever heard the term " you get what you pay for " Believe me, this fact is alive and well, it proves itself over and over.
The low fee Real Estate companies have a slogan that goes something like this "same service for less money". How can that be? That rule does not apply in any other industry!
Let me ask you this. How can a road side cafe give you the same service and same food as a high end restaurant? How can Wal-Mart sell you the same clothing as a designer store? How can a motel offer the same services a good hotel? How can Rolls Royce sell you their car for the same price as a Hyundai? The examples can go on and on...
I guarantee you that also in Real Estate, the level and quality of service you receive, will be what you pay for! How can I achieve the best possible results, if I am forced to provide an inferior service?
If you have read some of the information provided in this website, you are probably realizing that in order to provide the level of service I demand you receive, I demand the prevailing fee. That fee is 7% on the first $100,000.00 and 2.5% on the balance. Most major centres in all of North America charge 7 to 8% of the total amount of your sale! You know you have found a good agent when they will not budge from these rates. Do you really want an agent who gives away most of their fees? What does that say about them, when it is time to negotiate the highest price, for you?
Here is something else to say about low fee Realty companies, and how it could affect the outcome of your sale. When you list your home for sale, the remuneration you have agreed to, is published in the body of the listing for all other agents to see. When an agent is choosing properties for their clients, just like the age of the home, the square footage of the home, the lot size, etc., the information containing the fees, is front and center. Might you be excluding some buyers because there are other homes similar to yours that are offering a higher remuneration?
In order to assure a level playing field for everyone (unless they have a monopoly on their service or product), all industries are governed by the rules of the Competition Act. The way it applies to our industry is, that agents are not permitted to exclude certain listings from being able to compete with others, especially ones that offer less remuneration. But can it happen? Does it happen? Is it not just human nature? Are agents human?
Think about it this way:
You are looking for a job doing what you are an expert in. Let's say you are an expert umbrella maker (probably a good secure job in Vancouver)...
There are two factories hiring. One is doing really well and offering $35.00 per hour, plus all the benefits. They value your skills. The other company needs to save money because they want to add another factory; they really appreciate your skills, and hope you will be part of their vision as a loyal employee. They are only offering to pay $10.00 per hour, and no benefit package. Which one will you go work for? Isn't it only human nature to only consider the one paying more? Wouldn't you think that they deserve your skills more than the low paying factory?
And how about if the high paying factory already hired someone, and you had to go make umbrellas for the low paying factory? Would you make the umbrellas with the same care and pride? Would you do your best? Or would you be just putting in your time, waiting for the better job to come up again? Isn't this what human nature is all about?
One thing I do know for sure, as we have discussed already, is that maximum exposure is directly related to maximum results, you do not want to take the chance of excluding anyone that may be a prospective buyer.
Pay the higher fees, your home is a huge investment, nothing but the best possible outcome should be accepted!
