There is a fine line on whether an agent is motivated to get you the best price or just taking your listing to make a buck. Depending on which side of the fence you fall, you may stand to lose tens of thousands of dollars.

An agents motivation on each listing is generally based on how much that sale is going to pay them, their commission. When you’re negotiating with your agent on their commission a good trick is to allow them to come to the figure or percentage. I’ve found that if an agent is given an ultimatum i.e. “If you do it for this commission, we’ll go with you, otherwise we’ll go with the other agent”, they tend to drop the commission just to win. The problem with that is it leaves a much higher chance that the agent will put your property a lot further down on their priority list and not perform the same amount of work they give other clients who have offered a stronger commission. They may also be offended that you’re wanting to use their services at the same price of the cheaper agent you don’t want to use.

Now, if you were to lead the conversation more along the lines of “we want to go with you, but we feel the commission is a little on the high side. Are you able to please rethink your position and come back with a better percentage?”. At least from here on, the agent is making their own choices about they’re self worth and there is a much greater chance they will maintain a higher level of motivation and keep the performance consistent with the other listings they’re working on.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

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