Are Real Estate Agents Worth their Commission?

The Difference Between Real Estate Agents

Are Real Estate Agents a Commodity? Does it actually make a difference who you hire to sell your home? And in a competitive sellers market does proper marketing and negotiations make a difference? And lastly, does it pay off to hire a discount broker, somebody who lowers their commissions drastically to drum up business? Well, let’s review the data, the statistics, the numbers when analyzing and answering these questions.

Real Estate Agents are a “Dime a Dozen”

I want to start off by saying we respect and appreciate our fellow agents.

Some people say that real estate agents are a commodity, and in a lot of cases, that is a very true statement, and I can appreciate why some people would actually think that.

Do you know in fact it’s very easy to get your real estate license? In Washington, it takes one thousand-six hundred house of pre-licensing to get your cosmetologist’s license, one thousand hours to get your barber’s license, but only 90 hours of pre-licensing prior to taking your real estate exam.

So yes, many agents do lack the experience, training and the education.

Homes are Selling Themselves

So what does the data say? Does it make a difference in who you actually choose to sell your home? And when someone says that marketing doesn’t matter because homes are selling off the shelf, is that true, is that right? Well in answering these questions, let’s look at the data.

We took this information straight from the Northwest Multiple Listing Service on January 1^st, 2022. We reviewed single family homes that sold in CHEHALIS / CENTRALIA in 2021 that had a lot size under half an acre. The reason we excluded homes that sold for more land, is because homes with larger lots sell for quite a bit more, because you’re actually paying for the value of the land.

In Chehalis, single family homes with lot sizes under ½ acre sold for an average of $334,000.

Our average sold price was $356,000 which is 6.5% higher, or $22,000 more than the average agent sold their homes for.

The median sold price for Chehalis was $330,000, but the median price that our team sold our houses for was $415,000, which is over 25.7% more!

So far, it’s looking like the data definitely shows it does make a difference based upon the experience, the market knowledge, the education, the negotiating, and of course the marketing level of an agent, as far as what you’ll net on the sale of your home.

Discount Real Estate Brokers

It’s also important to understand that in Washington, it’s customary for the seller to actually pay the buyer’s agent’s commission. You need to pay the agent bringing the buyer. So when a discount or flat rate broker says that they charge 1% to list the home, you need to remember you still need to pay the buyer’s agent commission. The 1% offer seems enticing, and it’s used to get their foot in the door, but remember it happened zero times out of the 13 homes they sold in Chehalis.

So is it worth saving on commission to lose a whole lot more? Is it worth it, paying a discounted commission and losing money at the end of the transaction?

Choosing Real Estate Agents Near Me

It’s costing you a significant amount of money by not hiring an agent who has extensive experience, who specializes in digital marketing, exposure, and who has a proven track record of negotiating an average of $22,000 more money for our sellers. We take our education seriously. We are on the cutting edge of innovation, technology, to get you the highest return on your most valued investment. So do us a favor, give us a call if you thinking about selling or just looking for some perspective or advice, we’re always here to help.

I’m Eren Millam with Premiere Property Group, thanks for watching and remember to make this day extraordinary!

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If you’re thinking of buying or selling your home in the west Lewis County area, contact me today! I’d love to hear from you! Eren Millam – Managing Broker Premiere Property Group, LLC WA License No. 26933

Chehalis, WA 98532 | Centralia, WA 98531

Call/Text: (360) 219-3616 | Email: Eren@LewisCountyHomes.com

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