The Lowest Bidder Isn’t Always the Best One!
A recent Rocky Mountain News article, “Try haggling with real estate agents to cut fees,” really caught my attention. Perhaps it is a personal preference, but the word “haggling” is rather demeaning. I prefer to use, “negotiating,” a much more sophisticated word.
Many variables collided to create today’s perfect real estate storm. In recent years, many new agents entered the real estate field as a third or fourth career, since barriers to entry are rather low and inexpensive. These newly licensed agents often find the grueling work and long hours to be quite arduous. As the Denver real estate market declined and quality buyers became scarcer, the only way for the rookie Realtors compete was to cut their fees.
The real estate industry is now facing a dilemma similar as the airline industry, which has operated in the red for many years. It is quite simple – operating at a loss diminishes customer service. It is hard to deliver quality service if you cannot pay your bills. Discount agents often lack many assets including: experience weathering previous down cycles, highly functioning websites, personal assistants, and high levels of education and prestigious designations.
Similar to airlines, which often fold when they are unable to turn a profit, real estate agents will often leave the business if they are operating in the red. Where does this leave the customer if his or her real agent is out of business six months later when a problem arises? While the problem may have developed regardless of the agent’s level of experience, a seasoned agent may have been able to spare the client.
A more accurate depiction of the real estate industry recently appeared in the August 5th edition of USA Today, which reported that Realtors’ compensation is actually dwindling. According to the National Association of Realtors, the median Realtor income in 2007 was $42,600, a 10.7 percent decline from $47,700 in 2006.
While you are interviewing potential agents in the Denver real estate market, always do your due diligence, as fees are certainly negotiable. Please keep in mind that an experienced real estate agent will save you a good sum of money. Skilled real estate agents know the best lenders, title companies, appraisers, home inspectors and contractors, who will ensure that the transaction closes with few glitches. Don’t just hire the lowest bidder to represent possibly your largest investment – experience and skills are crucial.
For advice on choosing a qualified real estate agent in the Denver metro area, please contact TeamCox Realtors at 303-400-6060.
If you are looking for a home in Denver and the surrounding area then contact TeamCox for professional Real Estate Assistance
One Comment
With the expenses that a Realtor puts on their shoulders I honestly don’t see how a Realtor can successfully market a clients property without the higher percentages.