What do we pay a realtor for? (part 2)
If a client asks what he pays a commission for, then the service is not clear to the client. A convincing answer should begin with a counter question: “What do you want and expect from a realtor?” I believe that the real estate service today is positioned incorrectly. Traditionally, it is offered to the buyer, and money is taken from the buyer. We are not working properly, gentlemen! Realtor services should be aimed at protecting the interests of the seller – the owner of the property. We must help him sell the property as profitably as possible, which means more. This is the essence of the work of a realtor. Therefore, for our services, we must take money from the seller, not from the buyer. And the realtor must help the buyer choose the option that he wants. And this will be his own choice, which should not be influenced by a realtor. His task is only to bring the client to the choice. And in this sense, real estate companies should resemble real estate supermarkets, where on the shelves are quality goods – real estate – with prepared documents, a good history, reliable recommendation. A professional realtor-seller, guiding the buyer from the “shelf” to the “shelf”, offers this or that property depending on the preferences of the buyer. Checking documents, showing the apartment, legal support of the transaction – this is all that is needed for the correct sale of the apartment. But money is not taken for that! The seller leaves a commission to the store agency for the correct sale of the object. And the seller needs to justify the need for such a real estate service. American realtors work on this technology. At the same time, the law prohibits realtors in America from giving legal advice to a client – this is the business of lawyers, and such services are paid separately. A realtor, on the other hand, takes his 6% only for agency services and is not responsible for anything.
I believe that 5% of the value of the object is justified. This amount of commission has one purpose – to motivate the agent to work well in the interests of the seller. And nothing is so inspiring as a percentage of the final cost! If I feel that an object, say, for $ 1 million, I can sell for $ 1 million 200 thousand – this is a coincidence of the interests of the seller and the agent. After all, what is the point of providing quality service to the seller? He should not regret having cheapened that not all potential buyers found out about the opportunity to buy this object. And in the situation with the buyer it turns out the opposite. The buyer is interested in a cheaper purchase. He will never agree to pay 5% to a realtor, because he understands that the cheaper the better. Therefore, the realtor must build his work so that the buyer does not regret that he did not buy the best property on the market, and that he overpaid for his purchase.
The essence of the realtor transaction is that both parties must be satisfied with each other. But the party that did not pay should regret that it did not use the service of a realtor who perfectly fulfilled the order of his client.
Who should pay the realtor for the services: buyer or seller? Should a property buyer receive real estate services for free?
E.K .: Real practice shows that the system of paying for realtor services in different regions of Ukraine is different. Traditionally, in our region, paying for a realtor is a buyer’s concern. In western Ukraine, a tariff system for these services is in place. In Cherkasy – the seller pays for the services. These systems have evolved over the years, have become familiar to their regions, and changing these systems can become very painful and problematic, especially for our customers.
S. L.: Should the buyer receive services for free? What a stupid thing. Who orders the service, he pays the money. And this can be both a buyer and a seller. American “panties” do not suit us. For our conditions, this is more of a theory. In a situation where there are more buyers than sellers on the market, and prices are unreasonably high, working “from the seller” is illogical. Although any client is a good friend to me. I work for the end result. And he, regardless of any circumstances, should be good so that the client is satisfied.
Who is to blame for the fact that they still treat the real estate profession with distrust?
A. O .: Not quite flattering reviews about the work of realtors say that we still have a lot to do so that people realize the need for real estate services. We are to blame for the fact that the attitude to realtors is poor. And not according to the law, and not because of public organizations, but because of our incorrect technologies. Last year, the country began to limit the circle of “simplistic people.” Who got into it? Realtors were equated with jewelers, a gambling business, as a real estate specialist also does not have the right to pay a single tax. To treat us with respect, we need to change the technology of work, correctly take money from someone who understands what he pays for. Otherwise, realtors will endlessly “fly” past the commission.