The residential real estate world is in the midst of a revolution. In light of the recent federal verdict against the National Association of Realtors (and other real estate organizations), many home sellers and home buyers are beginning to question the unwritten rules of real estate agent services -- and for good reason.
For decades, the real estate industry has been flooded with incompetent and/or unscrupulous agents. It's been an open secret, if not a running joke, that agents are akin to used car salespersons with little value to actually offer. However, the average commission rates of 5-6% (for both buying and selling agent combined) have remained pervasive.
This court decision -- and the inevitable fallout -- has sent shockwaves through the country. While the totality of the ramifications remains to be seen, one thing that's become evident is the way we compensate real estate agents is changing. This presents a unique opportunity for a home seller; the uncertain future of the "full commission" means a homeowners can force agents to put their best put forward to win their business.
Why Agents Are Willing to Compete
Truthfully, you always had flexibility in how you could pay a real estate agent. It was only the longstanding custom (and active collusion by the NAR and a handful of real estate brokerages. as we're now learning) that upheld the traditional rates. But now the secret is fully out of the bag, and many real estate agents are realizing they can't bank of getting their fixed 3%.
There's widespread fear in the industry that the empowerment of sellers (and buyers), along with high home prices and even higher mortgage rates, is going to squeeze many agents out of the game entirely. Every real estate broker is panicking about losing market share, failing to find new clients, that they're willing to be more flexible on their payment just to keep business going and survive the possible purge.
Of course, commission is not the only way agents compete for business. A professional real estate agent will do their homework on your property and the local market. They will be able to showcase their success in your sector and demonstrate exactly what type of value they'll bring to your home sale. They'll pledge a dollar amount to marketing, detail exactly how you can improve your property to increase the sales price, build a comprehensive listing strategy, and present a mock open house to give you a better idea of how they'll get the job done. And they'll do all of this before signing a single listing agreement.
Where to Make Agents Compete
In the old days, if you wanted to put real estate agents in competition with each other, it was a ton of work. You'd start by finding and interviewing several real estate agents -- a scheduling nightmare with a ton of phone calls. You'd ask about their experience, track record, and marketing plan to sell your house. Take some notes on their responses and compare them to see which agents you think would be the best fit for your property. Then you'd invite them to make an offer on your home, including the price they would list your home for and the commission they would charge for handling the real estate transaction. At this point, you would choose the agent who made the best offer and start working with them to sell your home.
Luckily, you don't have to go through all that pain. There's a much easier way to find real estate agents now.
TrueParity is an online platform that handles all of this for you. All you do is put in your address and its smart technology does the rest.
TrueParity uses the latest data to identify the top agents in each neighborhood, so its intelligent system already knows the best candidates for your property. In fact, every agent muss pass a thorough screening to even get access to the platform; so other real estate agents that don't meet the qualifications will never get your info or know you're seeking a listing agent. Then, every real estate agent that wants your business submits a proposal highlighting all the important aspects. They'll outline how they'll market your home to the target audience, what budgeting and improvements need to be allocated, how much money they can make you, and yes, how you can compensate them. You can even meet the ones you like in person to solidify the details and make sure you're selection is head and shoulders above other agents.
Final Thoughts
Ultimately, every seller wants the best service, best terms, and best experience when they put their home on the market. It's not just about finding a home buyer, it's about getting the most value every step of the way. And the charade is up for agents; the good ones now they'll need to step up their game and compete to prove their value to potential customers.
Are you a home seller who wants the best real estate agent to sell your home? See how easy TrueParity will make your life. It's fast, it's free, and there's no obligations.
