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YOU GET WHAT YOU PAY FOR And That is Especially True in Real Estate By Sean Dinsmore C Top Producing Team Gilroy Intero, 2015-2018 Sean Dinsmore, Realtor Intero Real Estate Services www.TheDinsmoreTeam.com 408.710.2855 DRE #01966405 Point your cell phone camera here to read what our clients have to say about us ommissions are a relatively hot topic in real estate these days. Perhaps they’ve always been. But with escalating home prices in the Bay Area, the dollar amounts of commissions have risen, even though the percentages have stayed the same. Combined with the rise of “discount brokers” such as Redfi n, and even companies that will let you sell your house yourself and charge you a fl at fee to make sure the paperwork is completed legally, this topic has been coming up more and more, with both client clients and industry professionals alike. While commissions have always been negotiable on the selling side, it is a new trend for some buyers to ask their agent to give them a portion of the future commission ($5,000 - $10,000) in exchange for the opportunity to represent them. I don’t understand this request, nor the reason a good agent would accept this proposition. A good analogy would be: let’s assume you, the reader, are good at your job and provide value to your company. What if your company said “hey Mr./Mrs. X, we would be happy to continue employing you, but for the privilege of doing so, we’re going to need you to give 1/3 of your salary back to us.” How would you feel about that? Anyone who excels at what they do is worth their weight in gold — whether it be a child sitter, a fi nancial advisor, a handyman, or a real estate agent. Is it possible to fi nd somebody who is a little cheaper (but provides excellent service) if, perhaps they are not established yet? Of course, but this is rare. The question is: do you want to trust what is likely your big- gest asset to somebody you aren’t SURE is the best? I can only speak for myself, but heck no! Let’s say you have $100,000 to invest, and you have two fi nancial advisors from which to choose. You’ve heard/ read great things about Advisor A, but he charges you 3% for his services. Advisor B seems ok, but not exceptional, GILROY • MORGAN HILL • SAN MARTIN august/september 2019 but only charges you 2%. You obviously can’t see the future, but if Advisor A makes you $10,000 and charges you $1,500, and Advisor B loses you $10,000 but only charges you $1,000, how much money would you save by using Advisor B and saving 1% on the fee? The answer is nothing—you’re actually net negative $20,000 in the end. Factoring in that said fi nancial advisor may also be responsible for your sanity, keeping your privacy intact, your relationship from falling apart, being available to you 24/7, amongst a plethora of other things, wouldn’t you prefer to have the best person for the job handling these things? Again, I can only comment for myself, but yes, absolutely. I genuinely feel that the people who are the BEST in their fi eld should be paid whatever is considered “the best wage” for that position. When an agent happily discounts their commissions (or is willing to give a portion back to you), this should be an immediate red fl ag. Why? If you’re hiring somebody whose primary responsibility is to net you the most money in the end (or save you the most in the end), and they can’t even net themselves the most money, what do you think they’re going to do with your money on the line? If you out-negotiated them to take a lower commission, and you are hiring this person to negotiate on your be- half, why are you even hiring them at all?? Do yourself a favor when it comes to real estate, or any area in life; hire the best person for the job, especially when that person’s primary responsibility is to make you money. The right agent should not only take exceptional care of you but should have the ability to give you the information and coordinate the tasks to get you the most profi t in the end. It’s my goal to make my clients more than I cost them while providing a service that very few agents can match. I can prove that I do this through the numbers. I hope that the person you are hiring to sell your house can do the same. gmhtoday.com 13