Why aren’t my “rates” published? Good question and I have heard it a few times. I usually charge a commission that is payable after a successful closing. My rates are always negotiable and I don’t charge the same in every situation.
Usually, my commission is based upon the sale price of the real estate I am selling. I do sometimes charge an hourly rate for my services.
I don’t charge the same amount in every situation. I generally give discounts to past clients.
The only time I get paid is after a successful closing. That means I can do my job and if a home loan falls through I don’t get paid.
Most people would rather have a job with a steady paycheck and benefits than wake up every morning unemployed like I do.
Some homeowners believe that there is a kind of standard rate that we all charge. Brokers are not allowed to discuss commissions with each other or set prices. I don’t have any way of finding out what the average commission is.
The people who “know” how much we all charge usually end up paying more. They kind of tell me how much I charge and I just go along with it. Why not?
If someone wants to negotiate a rate that I think is too low, I just say no. Sometimes the customer will offer more and other times I move on.
There is a kind of standard negotiating tactic that real estate agents are taught to use where they more or less say that if they accept a lower commission they are not good enough negotiators to get the best price for the house.
I don’t use that argument because it is the homeowners who decide how much they will accept and it is my job to help them get it. When I agree to a lower commission I still work just as hard to do my job.
There isn’t any law that says that a company has to publish a price list. It isn’t illegal to buy or sell real estate without the help of a real estate agent either, which is one of the many reasons why I consider it a privilege to work with my clients and I thank them for choosing me.