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Real estate agents are not equal; each is unique. Remember about 10% of the agents do 90% of the business. Each has their own marketing techniques and advertising budget. By choosing an agent with a large advertising budget and company dollars to match it, you will gain greater exposure to the largest number of buyers, which is ideal. Reaching greater numbers of buyers equals better chances of a good offer.

Why would an agent willingly work for less than competitors?

There is always a reason why a broker or real estate agent would discount a real estate fee. Sometimes it's the only way the agent feels it's possible to compete in a highly competitive business, because the agent can't stand apart from the competition on service, knowledge or negotiation skills.

If the sole benefit an agent brings to a table is a cheap fee, ask yourself why. Is the agent desperate for business or unqualified? Do you want to work with a desperate agent?

Sometimes full-service agents will negotiate a lower commission under special circumstances such as:

·         You're buying a home and selling a home at the same time, giving both transactions to one agent.

·         You're willing to do all the legwork, advertising, marketing, and pay for expenses related to the sale.

·         You promise to refer more business to the agent, which would result in multiple transactions.

·         You're selling more than one home.

·         You don't have enough equity to pay a full commission.

·         The agent will lose the listing unless she matches a competitor's fee.

·         The agent wants the signage (exposure to traffic) over charging a full commission.

If you are interviewing agents who offer similar services and can't decide between them, ask to see a track record of each agent's original list price and final sale numbers. Odds are the lowest-fee agent will show more price reductions and longer days on the market. The difference between an agent who charges 5% and 6% is 1%. Ask yourself how you come out ahead if your price ends up being reduced 2% because you chose a lower-fee agent who could not afford to actively market your home.

Tip: If your home is located in a hard-to-sell neighborhood, hire an agent who lives in the neighborhood / sells homes in that neighborhood. Don't hire an out-of-area agent who can't adequately tackle the challenge without first-hand knowledge of the area.