Discount Agents - Be careful what you wish for!

Everyone knows a real estate agent...EVERYONE! We are everywhere. We are in your families, your sub-divisions, your grocery stores and even in your mail! Used to be you had to ask a friend of a friend of a friend for an agent's name and number, but those days are gone. It is no longer six degrees of separation (more like 1 degree). However with more agents than ever comes more competition in the real estate world, thus the rise of the "discount agent". Now don't get me wrong offering a discount is not above me nor should it be (depending on the client and situation), but more and more I am realizing the strongest and busiest agents are not the ones offering discounts on their commission very often. And at first I found that strange because not only were they avoiding "commission wars" with clients, but they were still maintaining their position as some of the top agents in the GTA. How is that with so much competition? How could they be so busy I once wondered? And you should wonder too!

Quality vs. Quantity - I don't know about other agents, but I am pretty picky when it comes to choosing my potential clients and homes. As much as they are screening me in the initial meeting I'm screening them. I believe in a strong relationship with your buyers and sellers. Open, honest, good communication etc. But be careful of the agents who are quick to tell you everything you want to hear and cut their commission right away without justifying their value and worth. I've seen it in the reno business and I know it exists in the real estate world. Sometimes saving 1% will cost you more in the final sale or purchasing of your home. Find an agent who takes pride in what they do.

Reputation - In this business it is everything. You are only as good as your last transaction. If you want to know about your agent's work ethic and quality ask them for a referral. No big deal right? A good agent would and should be more than happy to offer up the names of the last two or three transactions they did? I know I would. We read reviews and get feedback on everything; where to eat, where to travel, who to hire to fix our leaky roof etc. Most people spend more time reviewing a restaurant than their realtor. I would rather risk my $100.00 meal instead of my $700,000 home!

Integrity - I don't want to sound like Kanye West here (lol) but the truth is, I am good at what I do. I work hard, study real estate trends daily, visit hundreds of homes and talk to lots of potential buyers and sellers. I know my business very well and my clients appreciate that and are willing to pay for that experience, knowledge and care. I have no problem justifying why I am worth every penny. I have at times made my clients a lot more money than was expected just by the handling of offers and marketing tactics. Tens of thousands to be exact. And I have actually spoken to other agents who refuse to go that extra mile because they were forced to take a commission cut. So on a home valued at $600,000 you may have left thousands of dollars on the table because of an extra $3000.00 on commission...and the worse part is you probably don't even know you did.

Costs - Finally, every buyer or seller should really understand the cost of doing business. Expenses, overhead, marketing, insurance fees, broker fees, education, travel. All things that every agent pays into in some form or fashion. Simple math doesn't explain the entire picture. Sure paying out 5% for selling your home is a big chunk of moneyon a $700,000 home ($35,000) but two brokerages split the commission, and each take their cut and after the agent pays their fees, insurance, marketing etc. the number isn't as big as you think it is. Which is why when I see agents running around claiming 1% transactions on deals it makes me wonder what it is they are sacrificing in order to get the lisitng. Hopefully the sacrifice is on their end and not yours.