Cody Chapa is a freelance writer and web entrepreneur. His most recent project involves building an electric knife sharpener information center for use by beginning and professional chefs and home cooks of all ages.
If you have been giving thought to selling your home in the near future, then you need to make sure that you are getting the most value out of your residence. Most people who successfully sell their home are not aware of the fact that they could have easily have made an extra three to five thousand dollars with little effort. The secret, as strange as it may sound, is to convince your real estate broker to take the best offer made for your home.
At this point, you are either really interested in hearing me explain that last sentence, or you are completely convinced that I am taking you on a wild goose chase. I can understand your confusion, most especially due to the idea that your real estate broker would not want to get the best offer on your home. After all, is it not in his or her best interest to do so? You will soon learn why that is not necessarily true, and how that could end up costing you big bucks in terms of lost profit.
There is one thing that all real estate brokers share in common regardless of whether they deal with commercial or residential properties, focus on local or national markets, or are complete beginners or seasoned professionals in the real estate field. They all work for a commission, and that five to eight percent is their primary motivation for selling your home.
Just to be clear, I do not mean to imply that real estate brokers care only about the income they generate for themselves. However, brokering real estate is their business and their source of financial support, so earning a strong commission is a strong goal for them when selling your home.
How does all this tie into making sure that your real estate broker gets the best value for your home?
Imagine yourself as a busy and successful real estate broker, just like one that you are entrusting to sell your own home. Assume that you are currently brokering a property valued at $250,000.00. Your current best offer on the property is a solid $240,000.00. You know that you can negotiate a few more hours and bump up the offer to at least $245,000.00. What would you do?
Like most successful real estate brokers, you will happily take the $240,000.00 and be on your way. Why? Because the extra $5,000.00 is not worth your time. Assuming a 6% commission, you are only going to make an extra $300.00 for four to five hours of more work. You could take on a completely new brokerage project during that same amount of time and earn a tidy $8,000 to $15,000.00.
Now that you have seen things from a real estate broker’s point of view, it should be much easier to understand why your real estate broker may not be tempted to work a little harder to bring in an extra few thousand dollars. The question you should now have in your mind is, “How can I make sure that my real estate broker is working to get the very best price possible?”.
The best way to convince your real estate broker is by offering incentives for doing so. For starters, do not be shy when it comes to explaining that you understand how unmotivated it is to work those extra few hours for a smaller increase in commission. Your real estate broker may actually be surprised that you brought the issue up, and will quickly see you as more of a peer than just a standard client.
That being said, ask your broker if there is any type of financial incentive that would motivate them to grab the best price. It could be in the form of a bonus or increased commission percentage for selling the home at a certain price. There is no cost to you if the price is not met, and if it is, make sure that the incentive amount is covered by the increased sale price.
Do you have your own tips and tricks for making sure that your real estate broker is working to benefit you the most? Please share and discuss them below.