Mistake #1: Listing with a Friend or Relative
It seems that we all know someone who is a real estate agent, and how do you not list your home with that friend or relative? The answer can be pretty simple. List with the right agent and have that agent pay a 25% referral fee to your friend or relative. They’ll earn a commission without doing any work, and you’ll get the better listing agent and possibly a higher price for your home.
Mistake #2: Not Demanding a Variable Commission
When your listing agent doesn’t have to share his commission, he (or she) should reduce their commission. That’s called a “variable commission.” Yet only 15% of listings on the MLS have a variable commission. Good for the agent, not so good for you!
Mistake #3: Not Using the Same Agent to Buy/Sell
When you’re buying a replacement home in the same market, choose the best agent for listing your home and have that agent reduce his or her commission in return for earning a commission on the purchase of your replacement home.
Mistake #4: Not Checking Out Your Agent Thoroughly
Some agents will exaggerate or even misrepresent their experience or level of success. In the Denver metro area, there's an easy way to check on both those metrics. Go to www.FindDenverRealtors.com, enter any agent's first and last name (remember, the first name may be different if they use a nickname) and click ENTER. Then you can click on "View My Listings", where you'll see their current listings and see a button for viewing their past sales. You can also click on "View My Profile."
Have you made a mistake on a real estate transaction? Share what happened and what you learned from it with our readers.
For more information, call Jim Smith at 303-525-1851. Or write me at Jim@GoldenRealEstate.com.