How To Save Money When Hiring A Real Estate Agent in Minnesota

Many first time home buyers have no clue how real estate agents are compensated.  Many first time home buyers needlessly worry about how much they will have to pay their real estate agent.  The answer is nothing.  The home seller incurs all of the cost associated with realtor compensation.  The real estate agencies want you to believe that a typical listing service cost around 6% of the price the home sells for.  That is why the top real estate agent in Beverly Hills has a TV show, the top agent in Minneapolis has a thousand billboards, and the top agent in a small town hands out cards at church.  The commission of the agent is tied to the sale price of the home.  I've often wondered why this is?  If I'm selling a million dollar home why would I pay an agency $60,000, but on the sale of a $250,000 I pay the agency $15,000?  I'm sure the agency would argue that they offer a different level of service, but really? Shouldn't the agent be doing whatever he or she can to sell the home?  After all, selling the home is the only way that an agent gets paid. 

The great secret in real estate is that the agent commissions are negotiable. When I purchase furniture I find the piece of furniture that we like, I take down the SKU, and go home and shop online for that piece of furniture.  Then I see if my local store wants to match the price or I purchase it online.  Some people are unaware of this and my mom was shocked when I helped save her $500 on a couch last week.  This practice has saved me thousands, and negotiating real estate commissions should be perfectly acceptable in a world where people clip 3 cent gas coupons.  

The ability to negotiate real estate commissions should be independent of what you expect out of your real estate agent.  The agents fundamental job is to price the property correctly, market the home, and help the seller through the negotiation process.  The ultimate goal is to sell the home for as much as possible.  A great agent will also lend advice on repairing and staging the home prior to listing it, have professional pictures and marketing created, and hold open houses to drive traffic to your property.  

As a small boutique agency I do not know if 10K Realty will ever have a billboard every quarter mile on I-94.  I'm not sure that we will be able to guarantee potential agents $100,000 salaries by advertising it on the radio.  However, we will be able to pass along the savings to our clients, offer a personalized experience where your business is our priority, and always do our best to insure that our sellers get top dollar for their homes.  If you are thinking about listing your home this spring please give us a call at 763-245-1871 and setup an appointment to find out how 10K Realty can help you navigate the sale process.

How to save money when hiring a real estate agent in Minnesota