Choosing a Listing Agent

The most important decision in buying your home is the Realtor you choose to help you find it and negotiate on your behalf! Regardless of the company, brokerage firm, or marketing strategy, it is the unique characteristics of the agent that make the difference. Your agent affects how fast you find a home, the value of your purchase and the overall experience you will have.

Common Misconceptions About Choosing a
Real Estate Company and Buyer's Agents:

1. You should go with a company that has the most listings.

WRONG! The fact is that all brokers work together and co-op on the majority of homes sales. An agent working with a buyer gets paid the same no matter who the listing company is. They use the MLS system to search for homes that best fit their clients' needs, regardless of the firm.

2. You should work with the agent that sold you your house.

NOT NECESSARILY! If the agent that sold your house meets all the other criteria you should be loyal to them. If they are not the best suited to help find your new home, you should feel no obligation to use them. Do what is best for you.

3. You should consider agents offering a lower commission.

NEVER! You get what you pay for! The agent's performance, sales, and negotiating skills are largely what dictate the price you pay for your new home. If they drop their commission to get you as a buyer, how hard will they work for you to get you the best price on your new home? If they will not stand up for themselves, how can they stand up to a sharp listing agent? Furthermore, Buyer's Agents are compensated by the listing agent who splits their fees with them. This means that they cannot really lower the commission at all.

Things to consider before you contract with a discount (alternative) broker

You may be shooting yourself in the foot by going with a "discount/alternative" broker.

1. Discount brokerage firms are more difficult transactions and require greater effort to get them to close. This is because their less then full service programs leave much or all of the work to the Seller including the negotiating.

2. It is frequently perceived that sellers listing "by owner" or with a discount or no-name broker, are not serious about selling their house. The discount companies are just not taken seriously by the other "major" firms which are responsible for the vast majority of Real Estate transactions. Many consumers express similar views.

3. Flat fee listing brokers... How does $1495 to list your home sound? Great until you find out that you still have to offer a buyer agents commission (usually 3.5%) and that you pay the flat fee even if the home does not sell. By the time you pay to co-op (buyer agent) fee you are almost at a full price commission with almost no service. Do the math!

** Most discount brokers not only reduce their commission but also the commission offered the Buyer's Agent. So if they list for 5%, they offer a 50/50 split of 2.5% to the Buyer's Agent that traditionally gets 3.5%. Right or wrong, some agents will just not show your house! If the listing agent was really concerned with your sale they would reduce their commission only, leaving the Buyer's Agent's in tact! See if you can get a discounter to take 1.5% commission and give 3.5% to the buyer's Agent.

Tom Schroth, a Full Service Realtor

I am trying to change the way you think of Realtors. I believe in giving my clients all the facts and letting them make their own choice. I am a professional that knows not only Real Estate but the art of Sales, Marketing and Negotiation. If you are looking for an expert that will work on your behalf, to see your best interests protected, look no further!

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