Agents accepting lower commissions are probably suspect

Any home seller who negotiates his estate agent’s commission down to an ultra-low level is almost certainly doing himself a disservice – and any agent who accepts a lower commission should be regarded with suspicion.

This was said recently by Bill Rawson, Chairman of Rawson Properties.

“The seller, who is entrusting the sale of a major asset to this agent, should ask himself if he can have confidence in the negotiating ability of an agent who is prepared to undervalue his efforts in this way.  The reason may well be that the agent lacks confidence in his own ability.  Having failed on several previous occasions, he may have become desperate.”

If the seller forces the agent to quote a lower fee, he is probably again doing himself no good, said Rawson, because the agent is likely to focus on other properties where the return will be better.

“Right now in the housing market,” said Rawson, “really good agents are absolutely essential because it is a buyers’ market.  Anyone trying to exploit an agent may well find that he ends up with the less competent operators.”

Rawson praised a rival agency for being prepared to accept a cut in their commission if the price achieved is significantly below their valuation.

“This,” he said, “is one case where a cut in the commission could be acceptable – but it should be noted that they do not cut their commissions at all if the price achieved is close to their valuation – nor do they add to it if the price achieved is above the valuation.  This is a highly ethical system which others should consider adopting.  It has the great advantage that it prevents agents overvaluing the property to get a mandate on it.”

For further information contact Bill Rawson on 021

Article from : Rawson