SAY NO TO 6% COMMISSION
MYTHS AND TIPS
Educated sellers who understand the process of listing and selling a home would never list with a typical 6% agent. The typical agent who tries to charge 6% is referred as a “6% agent or Traditional Agent”. They prefer to call themselves “Full Service Realtors” to make it sound like they are providing more than what they are. Ask them what they provide compared to us and watch them squirm, don’t let them off the hook.
There are very few things that a 6% agent can provide compared to us, and if they say they do, contact us and if it makes sense to help sell your home, we will put it in place. In fact, the chances of selling your home faster or for a better price are reduced by a 6% Traditional Agent.
The single most important factor that generates showings and offers is the PRICE.
If you are paying a 6% commission, you have to price the property high to cover the cost. By listing with us, not only can the listing price be lower, but you should receive the same amount at closing, or more. When a buyer contacts us about your home, we offer them 50% of the Buyers Commission as an incentive to buy your home!
This is why many people have their home listed with a 6% Realtor without any activity. When they finally decided to list with us to get more for their home, it’s priced to get showings and offers right away. Sellers never try calling the phone number on their agent’s yard sign pretending to be a buyer as a test to see how the call is handled. We suggest that you should try it to see how it’s handled by the Hawaii Real Estate Team.
The 6% commission traditional agent’s dilemma
Sellers are more educated today.
Today’s sellers are more educated and tech savvy, with over 90% finding the homes and information they need from the Internet or on their smartphone, experienced and educated sellers realized that the 6% agents can’t really provide more than we do, or in most cases even close to what we provide.
Some 6% commission agents get very creative with their “Sales Myths” to try to convince sellers to list with them at a 6% commission.
Here are the some of the most common “Sales Myths” that traditional agents make to try to convince a seller they should list with them at 6% instead of saving thousands with us:
Most people probably do not know that the standard listing agreement that 6% Traditional Agents use states that if the house sells while they have it listed, you pay 6%. If they do nothing more than put their sign in the yard and enter the listing in MLS, it’s still 6%.
Even if you sell the house to your neighbor, your sister, your friend and the agent had absolutely nothing to do with making that happen, you pay 6%. It’s unbelievable that many sellers sign the standard 6% commission listing agreement, most probably never read it. It’s completely one-sided in favor of the agent.
Worst of all, once you’ve signed the listing contract, even withdraw it from the market will not let you off the hook. You will not be able to list it with anyone else before it expires. If you sold it within the original expiration date, you still must pay the original listing agent the 6% commission. If you ever need to do a 6% listing, do it only for 30 days, and extend it for 30 day at a time if you see the agent is actively marketing the home for you. Or you demand to always build in a un-conditional withdraw into any listing agreement.
MLS systems began in the early 1900’s and was not until the 90’s when they were computerized.
Before the advent of the MLS, real estate brokers gathered at the offices of their real estate associations to share information about properties for sale. Then came agreements by which one broker would compensate other brokers who helped sell those properties, through a system of shared inventory sales. In a cooperative effort, one broker assists another broker by producing a buyer for a sale and, subsequently, shares in the compensation.
Brokers established the fees they would charge and share with other Brokers, controlling and setting the fees. Even tho RICO anti-trust laws we enacted to prevent price fixing, why do they still try to charge you 6% commission?
Today 90% of home-buyers start their search for their next house online. Furthermore, 89% use the Internet to find an agent to make an offer for them. If done correctly, you can maximize the efficiency of your online home search so that you move through the market quickly without compromising your standards. A motivated buyer will usually make an offer within two weeks of completing online research.
So the question is: “Why do Traditional agents feel that they can still try to charge you 6% commission”
Most 6% realtors seem to like vague and non-committal words like “market”. If you ever hear this, do ask, “What specifically would you do?”
Don’t let them off the hook when they give you more vague answers. Probe further and insist on quantifiable specifics! such as Open Houses, Professional Photography, Realtor.com showcase, listing syndication, Performance Reporting, Flyers, Videos, Virtual Tours, Texting Service and etc. The more specific the better for you.
Many 6% realtors only take a few poor quality pictures with their own digital camera, put it on the MLS and call themselves a full service realtor.
These services, and much more, are included in our Hawaii Real Estate Team service, at a much lower cost to you.
IF YOU LIST WITH ONE OF THOSE DISCOUNT OUTFITS YOU ARE GOING TO GET BLACKBALLED AND NO AGENT IS GOING TO SHOW YOUR HOUSE.
The only agents complaining and making up “blackballing” stories are the local monopoly listing agents who can’t get 6% listings so easily any more, and they don’t normally work with buyers at all. They go to funeral homes, local churches, sports events to get listings only. They reply on buyer’s agent to sell the homes almost 99% of the time. They quickly put a “SOLD” sign up as if the listing was sold by them.
An with our Buyer Rebate Program, Buyers will be drawn to your home regardless of what a 6% agent “tried” to do.
I WILL ENTER YOUR LISTING IN A SALES BOOK WHICH IS DISTRIBUTED TO HUNDREDS OF RACKS ALL OVER THE AREA.
A refrigerator calendar magnet…
(we need to cut overhead somewhere, we don’t waste money on self promotion)
The Hawaii Real Estate Team provides you more than a Traditional 6% Agent!
We provide Modern Technology, Trained Full-Service Agents, Efficient Systems and Procedures.
We utilize dedicated coordination and handling of your real estate transaction. You get the expertise traditional real estate agents offer—without the decades of inefficiency the traditional real estate process can create. In fact, we’ve created an environment that brings out the best in agents because they are free of the administrative tasks that get in the way.
We have never understood, nor felt comfortable, charging excessive fees based on 80’s technology, do it right.
We believe in the efficient use of technology to standardize and expedite the real estate process and pass the savings to our clients. With software created by real estate professionals, integrated with processes that eliminates hassles. The result is amazing coordination and dexterity on your next real estate transaction. You get the expertise traditional real estate agents offer—without the decades of inefficiency the traditional real estate process can create.
We are driven by a core group with a passion for real estate, experienced agents and sales coordinators. We offer you more and fees that are thousands of dollars less.
We provide full-service real estate services as a team. Driven by a core group with a passion for real estate, experienced agents and sales coordinators offer you fees that are thousands of dollars less.
Buying and selling a home is a huge undertaking. That’s why we designed our entire business to make the real estate process seamless, efficient and successful.
Technology has changed the way you find and sell homes, yet the traditional commission model hasn’t. Until now.