The real estate industry has changed dramatically over the last couple of years. You've probably heard some of the headlines:
- "Sellers no longer pay the buyer's agent."
- "You don't need a Realtor anymore."
- "Zillow is being sued."
- "Commissions are changing."
Some of those statements are partially true. Some are misleading. And some are simply misunderstood.
I've been a full-time Realtor for more than 30 years, and I thought I'd explain what has actually changed—and what hasn't—so you can make an informed decision if you're thinking about buying or selling.
First Things First...
Despite all the headlines, one thing has not changed:
Hiring the right Realtor can still make you far more money than trying to save a small percentage on commission.
Real estate is one of the largest financial transactions most people will ever make. Choosing representation based solely on who charges the least can end up costing you much more than you saved.
The Commission Changes Explained
For decades, sellers negotiated a commission with their listing broker. Traditionally, part of that commission was offered to the buyer's agent.
Why?
Because if buyers had to pay their agent out of pocket, many would have struggled to qualify for a mortgage or come up with enough cash for both a down payment and their agent's fee.
After the National Association of Realtors settlement, buyers are now required to sign a separate agreement with their own agent explaining how that agent will be compensated.
What surprises many people is this:
In many transactions, sellers still choose to offer compensation to the buyer's agent because it helps attract more qualified buyers.
The biggest change is that the compensation is now negotiated differently and documented differently.
Watch Out for Administrative Fees
Here's something many consumers don't know.
Some brokerages add an "administrative fee" to the transaction—often around $495, sometimes more.
Personally, I've never believed in charging my clients an extra fee just because I can. Whenever possible, I remove those charges from contracts I write.
It's worth asking any Realtor you're interviewing:
"Are there any additional fees besides your commission?"
You might be surprised by the answer.
When You Click "Contact Agent" on Zillow...
Many people assume they're contacting the listing agent.
Usually, they're not.
In many cases, you're connected with an agent who purchased that lead from Zillow or another website. Those referral fees can be substantial.
That doesn't automatically make the agent bad.
Some excellent agents advertise there.
However, being connected through a website doesn't necessarily mean you're being matched with the most experienced or most knowledgeable agent for that particular property or neighborhood.
If you're serious about buying or selling, don't hesitate to ask:
- How long have you been a full-time Realtor?
- How many homes have you sold in this area?
- Will I work directly with you?
Those are fair questions.
Discount Brokerages: Read the Fine Print
There are more real estate companies than ever before.
Many advertise lower commissions, and for some sellers they may be the right choice.
But before deciding based solely on price, ask exactly what services are included.
Some companies provide full-service representation.
Others operate more like an à la carte menu, where certain services are limited or handled through call centers.
One issue I've encountered as a buyer's agent is difficulty reaching someone when trying to schedule a showing or ask important questions.
Recently, one of my buyers asked about a property that was priced extremely well. I tried contacting the listing office to check on activity.
No answer.
I left a message.
I sent a text.
Nothing.
The home remained available much longer than I expected.
Could there have been other reasons? Absolutely.
But when buyers and agents can't easily reach someone, opportunities can be missed.
So Who Should You List With?
Here's my advice.
Don't choose the cheapest Realtor.
Don't choose the first person who answers an online inquiry.
Don't choose someone simply because they promised the highest price.
Instead, ask a few simple questions.
- How long have you been selling real estate full-time?
- How will you market my property?
- Will you personally answer your phone?
- Will I be working directly with you?
Then do one more thing.
Call them from a phone number they don't recognize.
Do they answer?
If not, do they call you back promptly?
That simple test will tell you a lot about how responsive they'll be once your home is listed.
My Philosophy
For more than 30 years, I've built my business on communication, honesty and experience—not by buying internet leads.
When you hire me, you work directly with me.
I answer my phone.
I accompany my showings whenever possible.
I negotiate aggressively for my clients.
And I work hard to make sure your property gets the attention it deserves.
In fact, my most recent listing sold for $10,000 above the appraised value.
If you're thinking about selling in the Florida Keys or the South Miami/Homestead area, I'd be happy to answer your questions—even if you're just wondering what your home might be worth.
No pressure. Just honest advice from someone who's been doing this for over three decades.
No comments:
Post a Comment