Deciding to sell your home is a big decision. However, the next big decision a seller makes is deciding which real estate agent to use to help them sell their home. Do they go with the real estate agent who will charge the lowest commission to net more money on the sale of their house?
Many people feel that if they are paying a lower commission that will mean more money in their pocket, but that's not always the case. There are many different commission formats, with the standard commission being 6%. Of that 6%, half will go to the listing agent and half will go to the buyer's agent. Every agent is different and will be able to sell a home at a different price point.
When choosing an agent, the seller should look at the stats of the agent they are interviewing.
The Miller Realty Group, for example, has listed and sold over 38 homes so far this year, and their average sold to list price ratio is 100%. In comparison, the average sold to list price ratio in Orlando is 97%. That means The Miller Realty Group is averaging 3% more for their sellers than the Orlando average.
If The Miller Realty Group charges 6% and another agent is charging 5%, it would appear the seller is saving 1% in commission. But in reality, according to the stats, the seller could actually net the 3% more by using The Miller Realty Group. According to the stats for Orlando, the same seller would lose 2% by going with another agent.
Most of the time, a seller will say that netting the most money is more important than the commission percentage. So it is important to partner with the right real estate agent who has the right systems in place to get their home sold for top dollar and net them the most money.