Why some Real Estate Agents need to charge High Commission Rates instead of Low Commission Rates| Ancaster Ontario| REALTOR MLS|

If you spent your working day performing tasks that did not make money for yourself or your employer, you would also have to charge a lot of money when you did FINALLY make some money.

This is the reason that many REALTORS® need to charge high commission rates. The truth is that many REALTORS® spend most of their working day searching for work, not doing work. They spend time knocking on doors or cold calling prospective buyers or sellers. They spend huge amounts of money marketing their services and promoting themselves and their Brands. Very expensive sources such as radio spots, billboards, newspaper ads, magazines ads, on-line marketing and other sources are used to try to obtain new customers for their services. Their brokerages do not provide them with clients. The individual REALTORS® need to go out and find their own clients. This means that these costs will have to be recouped through the commission fees they charge when they finally do get a client. These costs are largely unrelated to the actual services that the client will receive from the REALTOR®.

Further, these REALTORS® spend countless hours providing Free Evaluations of homes to people that may not even be selling their homes now just so that they can meet home sellers and possibly make them their clients in the future. And, even if they are selling now, the home owners may be obtaining 4, 5 or even more Free Home Evaluations from various REALTORS®. This means that all but one of the evaluations will have been a waste of work, time and resources for all the other REALTORS® that do not get that listing. This waste of time for the REALTOR® will have to be made up in the Commission Rate charged to their client when he/she does in fact get a client.

Of course a REALTOR® will need to charge a high commission when he/she finally does get a client using this antiquated and inefficient approach.

Rather than performing the job of selling homes, they are wasting their time and money trying to find clients to work for. As the authors of Freakonomics (economists Dubner and Levitt) write, “Most real-estate agents seem to spend 95 percent of their energy chasing clients (for which they are paid nothing) and 5 percent actually serving them (for which they are paid way too much).” This suggests that 95% of an agent’s time is wasted on tasks that do not provide any results for the client. This inefficiency is what causes high commission rates to have to be charged to the home sellers.

Our approach is totally different. Because we offer low commission rates, clients find us directly through the internet, our website and through word of mouth referrals. We get many more clients than if we were charging higher commission rates. This frees up our time and resources so that we can provide our clients the REALTOR® services that they have actually hired us to perform: listing their homes on the MLS®, marketing the property, securing an offer and negotiating the sale of the home. Additionally, many of our clients that have received a low commission rate when selling their homes will also need to buy another home. Therefore, we again do not need to waste our time and resources searching for buyers. Since we don’t need to waste time searching for clients to work with, we can focus on providing our buyer clients with the REALTOR® services they need to find the home they really want.

This system makes much more sense than the traditional high commission rate approach to real estate sales. It’s a win-win for both the home owner and our REALTORS®. The inefficiencies of the traditional approach have been largely eliminated. Therefore, the client can get all of the benefits of MLS® and REALTOR® service without the inefficiencies and costs associated with these inefficiencies.

It’s that simple. That’s why, since 1995, our low commission rate approach has been working so well for our brokerage. And, why it’s been so appealing for our clients.

The proof that this low commission approach is so powerful is in the fact that more and more home sellers are choosing to pay low commission rates for great MLS® and REALTOR® service. Why would YOU want to pay MORE?

See the video below for details. Or, visit our website at www.coronarealty.ca .