Hello future home sellers! Nathan Derry here, your trusted real estate expert. As you prepare to list your property, you may be wondering about the best strategies to ensure a swift and profitable sale. One often overlooked tactic is offering a higher commission percentage to the opposing agent. Let’s delve into why this can be an effective move and how it can benefit you as a seller.

Understanding Real Estate Commissions

In a typical real estate transaction, the commission is split between the seller’s agent and the buyer’s agent. This commission is a percentage of the final sale price and serves as the primary incentive for agents to bring clients to your property. The industry standard commission is usually around 5-6%, split evenly between the two agents.

The Benefits of Offering a Higher Commission

1. Increased Agent Motivation

   When you offer a higher commission percentage, you significantly boost the motivation of buyer's agents to show your property to their clients. In a competitive market, agents are more likely to prioritize properties that offer better financial incentives.

2. Greater Exposure

   A higher commission can lead to greater exposure for your property. Buyer’s agents may be more inclined to promote your listing over others, increasing the number of potential buyers who view your home. This can be particularly beneficial in a crowded market where numerous homes are vying for attention.

3. Faster Sale

   More motivated agents and increased exposure can lead to a quicker sale. When your property is shown to more qualified buyers, the likelihood of receiving offers sooner rather than later increases. This can be a crucial factor if you need to sell your home within a specific timeframe.

4. Potential for Higher Offers

   A well-compensated buyer’s agent is likely to work diligently to close the deal, potentially negotiating better offers from their clients. This can result in a higher final sale price, offsetting the cost of the higher commission.

Addressing Seller Concerns

Understandably, some sellers may hesitate at the idea of offering a higher commission. Here’s why the benefits often outweigh the costs:

• Increased Net Profit: While you’re offering a higher commission, the faster sale and potential for higher offers can lead to a higher overall profit.
• Market Advantage: In competitive markets, this strategy can give your property an edge over others, making it stand out to both agents and buyers.

Practical Tips for Implementing This Strategy

1. Consult with Your Realtor: Discuss the potential benefits and drawbacks of offering a higher commission with your listing agent. They can provide insights specific to your market and property.
2. Analyze the Market: Evaluate the competitiveness of your local market. In areas with high inventory, a higher commission can be a game-changer.
3. Set Clear Goals: Determine your priorities—whether it’s a faster sale, higher offers, or increased exposure. Align your commission strategy with these goals.

Offering a higher commission percentage to the opposing agent is a strategic move that can pay off in several ways. By increasing agent motivation, boosting exposure, and potentially accelerating the sale process, you position your property for success in a competitive market. Remember, your realtor is your ally in this process. Trust their advice and work together to develop a strategy that maximizes your property’s appeal and marketability.

Feel free to reach out if you have any questions or need further guidance. I’m here to help you every step of the way! Happy selling, and here’s to a successful and swift sale!

All the best,

Nathan Derry, Realtor

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

Interested in seeing a property or one of my off market properties in person? Contact me today!  Who you hire matters!!!

Ready to make the best move of your life… let’s chat today!