Why Low Commissions Are Bad for Home Sellers?

[Greg Raymer]

Low commissions for home sellers can be problematic for several reasons:

Reduced Marketing Effort: Low commission rates can result in reduced marketing efforts from real estate agents, who may prioritize higher-paying listings.

Less Experienced Agents: Home sellers may be more likely to work with less experienced agents who offer lower commission rates, reducing the quality of representation they receive.

Reduced Access to Resources: Agents with lower commission rates may have less access to resources, such as professional photographers and stagers, that can help sell a property more effectively.

Incentive for Quick Sale: Agents may be more focused on closing a sale quickly, rather than maximizing the sale price, in order to make up for the lower commission.

Reduced Representation: Agents with lower commission rates may be less invested in the sale and may provide less comprehensive representation and advocacy for the homeowner.

Overall, low commission rates can lead to reduced marketing and representation efforts, potentially hurting the sale price and making it more difficult for homeowners to achieve their goals.