Commission shoppers beware

Low rates may not reflect true value

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

How will you decide who is the best person to market your property? If you're shopping exclusively based upon commission, you could be making a very costly mistake. Recently I was speaking with the CEO of a well-known real estate firm. He shared his frustration about what he was hearing from many of his broker-owners. Apparently, a large percentage of buyers are calling various real estate offices and asking, "How much is your commission?" If the person answering the call says, "Six percent," the caller hangs up.Another version of the same scenario sounds like this, "We just talked to Joe Agent who works for the same firm you do, but he was willing to take our listing for 5 percent. We really like you, but unless you cut your commission to 5 percent, we're going to list with Joe." Research from the National Association of Realtors shows that about 15 percent of all sellers select their agent exclusively by how much commission the agent charges...