Myths about "Discount Realtors"

Wrote this awhile ago, it is lengthy, but it helps explain our business model and how we interact in the Real Estate community.

5 Myths about the Nelson Advantage Lower Commission Rate
As we have signed up various clients, we have become aware of some myths they have heard while interviewing agents. (A wise seller interviews at least two agents prior to listing!) These misconceptions are certainly not made out of malice, but most likely out of lack of knowledge regarding how we operate since our business model is not one agents in our area are used to working with. We thought we’d address these myths to aid you in better understanding who we are, why we offer the rate we do and what you can expect when working with Nelson Advantage as a buyer, seller or when referring someone to us.

Myth #1 Discount Realtors? We charge a commission rate of 3.9%. leading some in the industry to refer to us as being “discount,” implying we have lowered our prices. Not true! If you look at what agents made per transaction before the big increase in real estate prices, you’ll see we are making roughly the same amount per transaction today, at a lower commission rate. Rather than keeping our commission rate the same as housing prices soared, we choose to lower the rate we charge, and leave the increased equity in our clients’ pockets. So, no, we are not discount Realtors, we in fact have just not increased our prices.
The commission rate consists of the amount paid to the listing agent and the amount that agent will pass on to the buyer’s agent. A seller should always be sure the buyer’s agent is compensated well for bringing a buyer to the closing. We pay competitive buyer agent rates. How are we able to do this? It’s simple, we take the lower percentage to allow our clients a lower overall commission rate

Myth #2 One Agent “Has the Buyers” so list with them to get showings….With the advent of Realtor.com and Agent websites, no agent “owns” the buyers. It is rare that a home is listed and sold by the same agent. And…90% of all buyers, have seen a property on Realtor.com or a Realtor website prior to physically looking at it. In today’s market, buyers themselves pick the properties they want to see. Good agents follow the buyer’s lead adding more information as they go along. To this end, all NelsonAdvantage clients get the added advantage of expanded features on Realtor.com and also have their homes featured on our company website and the Nelson Advantage website, (yournelsonadvantage.com), ensuring our clients premium internet exposure.
Since all the properties for sale in the county can be shown by any Realtor of Carteret County. all properties are available to buyers, not just those listed with the specific Realtor they are using or the agency with which they are associated.

Myth#3 “You won’t get as high a selling price” We have to chuckle at this one; if we could control the market place well enough to get more or less for your home, we sure would try to get more! Obviously our sellers set their prices, based in part on a comprehensive market analysis prepared exclusively for them, which takes into consideration the market, their home, and the competition.. All pricing is market and “client objective” dependent.
When an offer comes in, of course, you want a competent negotiator on your team. This is where our experience and expertise come into play as well. We will coach our clients as much or as little as they are comfortable with, in the fine art of negotiating and reading the buyer, but the ultimate decision maker is the seller, not the agent. Again, how to respond to an offer is dependent on the seller’s objectives and the market, and a good agent will help the seller understand the different options and help them make a wise and informed response. Knowledge and experience make a good negotiator and you want to be sure the agent you chose has both! Those who have worked with us have seen the results, if you are still unsure, look at the testimonials on our website! And don’t forget, our customers save thousands when they sell their home, simply because they are paying less in commissions.

Myth #4 “You Get What You Pay For” When all else fails, this is the final comment often tossed out by an agent who wants to win out over a lower commission rate agent. We actually were told this when we were helping our aunt list her home in Atlanta last week. When choosing a Realtor it is important to find out what services you can expect. You might be surprised to learn some agents do not use print advertising because they think it “ineffective,” or that they do no open houses, or use lockboxes. It is equally important to know what your Realtor’s marketing strategy is and how it will be implemented. How will your Realtor follow through? How often will you get feedback on your listing? Ed and I say, “Dare to Compare” with the Nelson Advantage marketing approach where you’ll find we focus on relationships not transactions. We think you will be hard pressed to find any that surpass our services. Please ask for a copy of our marketing strategy so you can make this comparison whether searching for a Realtor at the coast or elsewhere. Also, we will gladly interview Realtors for you in other areas of the country to help you find the best one for your needs.

Myth #5 “No one shows a Discount Realtor’s listings.” Of course this is not true, again, the buyer choses what he wants to see. The Realtor shows the buyer what they are interested in because that is what the buyer will ultimately buy, whether he buys it through that Realtor or another. Roughly 50% of our business is involved with other Realtors, either we are showing their property or they are showing ours. Our average in terms of % business in which we co-broke with another Real Estate company is very similar to other companies in the area. Buyers’ agents get a competitive commission, so they are just as incented to show our properties as any other properties.

In closing, we hope we have dispelled some of these “Nelson Advantage Lower Commission Rate Myths.” We love to hear from you and appreciate your comments and questions. We are pleased so many of you are savvy investors, and know that money not spent in commissions is money in your pocket. Thanks for your trust in us, and thanks for reading our newsletter! We hope you continue to find it informative.