Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty 
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131
Seller: Your commission is 6%, that’s ridiculous I have never paid more than 5% to a real estate company. I have talked to several other brokers that will take my listing for 5%.
Steve Keefe: I can imagine that you would be able to find someone in our market that would be willing to list your home for 5%. Some agents/brokerages pitch is all about “we will do it for less”. In reality not only will they do it for less, they will do less. If all you want to do is list your property, then going with the guy with the lower fee might be a good strategy, but if you are looking to sell your property, you need someone who will be doing a lot more than listing it.
I case you haven’t gotten the news bulletin, the real estate market is tough, tougher than it has been anytime during my 22 year career. You as a seller have a couple of options… you can contract with someone who would be willing to list your home for a 5% fee, you could list with me at 6% or you could list with me for 7 or 8%.
If you list with the guy who will do the deal for 5% a couple of things are going to happen, first they likely will split the commission, keep 2.5% for the listing side then offer 2.5% to the buyers side. In our market, if there are 45 properties in your price range, 5 will be offering 2.5% to the selling side all listed with weak agents like the one you have contracted with. Hate to say it, but agents who have a buyer, aren’t going to show your home when they can show 40 other properties all with a full commission. So that leaves it up to your agent to sell it, because nobody else is going to. They may agree to offer 3% to the selling side and keep 2% for themselves, but a good agent will not do this. As I said there are 40 listings out there in your price range, and plenty of sellers willing to pay a full fee so the strong listing agent will move on to the seller that will pay for top service. I will say it here any agent who reduces their fee isn’t worth dealing with. You don’t have to worry you won’t be paying any commission because your property won’t sell.
Let me give you an example... lets say that Sylvester Stallone gets $3,000,000 for each movie he does. How do you think he would react to a producer offering him $2,000,000? You got it, he'd say thank you very much, offer the $2,000,000 to someone who is worth $2,000,000 and he'd move on to the people that want him and are willing to pay him for what he is worth. How do you think the results were for the producer that hired the $2,000,000 guy... your right, not as good as if it had been Sly Stallone.
If you list with my firm and are willing to pay the full fee, you are getting a team of 60 agents standing behind the listing agent working together to accomplish your objective… the sale of the property. Coldwell Banker Sky Ridge Realty has twice as many sales on the mountain as our next closest competitor. What we charge is fair representation of what we are worth… how much is it worth to you to have the #1 team with the #1 results working for you?
If you list with my firm and you offer a 7 or 8% fee, you receive all of the benefits of working with our team plus you provide additional incentive to buyers agents to push your property to the top of the show list. Same analogy as above, if there are 45 properties in your price range and you are one of 5 that is offering a higher commission rate to the buyer agent, what do you think will happen. Correct, you will receive many more showings as agents want to maximize the return to them.
In this market, to be successful a seller must do a couple of things. First they must be realistic and aggressive with their pricing to attract buyers. Second they need to choose a real estate firm that produces results. In the mountains, there is no other choice than Coldwell Banker Sky Ridge Realty. Next you must select the right Coldwell Banker Sky Ridge Realty agent. Don’t be afraid to ask them the question “Why should I list with you?” Last, creating incentive to the buyer agents will give you an edge and will provide more exposure for your property. Consider offering more commission to the agents and you will likely see better results.
I hope this helps, please send your real estate related questions to steve@cbskyrige.com