Call Us!
(818)422-1702 || (310)795-4347

Does IT Make A Different Who You Hire?

Does it make a difference on who you hire to sell your home? Are all real estate agents the same? Are we just a commodity? And, in a competitive sellers market, does proper marketing and negotiations make a difference? Lastly, does it pay off to hire a discount broker, someone who lowers their commission drastically to drum up business.
Well, let’s review the data, the statistics, the numbers when analyzing and answering these questions.

Hi, I want to first start off by saying we respect and appreciate our fellow agents. Some people may say that real estate agents are a commodity, and in a lot of cases that is very true and I can appreciate why some people would think that. In fact, it’s very easy to get your real estate license. In California it takes 1,600 hours of pre-licensing to get your cosmetology license, 600 hours to get your esthetician license, but only 135 hours of pre-licensing prior to taking the real estate exam. So yes, many agents lack the experience, training and education. 

So, what does the data say? Does it make a difference in who you choose to sell your home to? And when someone says that marketing doesn’t matter because homes are selling off the shelf, is that correct? Would you like one offer on your home or would you like multiple offers to choose from or just one? Well, in answering these questions lets look at the data. We took this information straight from the Multiple Listing Service on 1-1-22. We reviewed single family homes that sold in Brentwood in 2021 that had a lot size under 1 acre. The reason we excluded homes that sold for over an acre is because homes with larger lots sell for quite a bit more because of the value of the land, and only 3% of the homes that sold in Brentwood had a lot size of over 1 acre. In Brentwood Single Family homes with lots under 1 acre sold for an average price of $818,986. Josh and I did 29 transactions in Brentwood and 20 of them we represented the sellers with Single Family Homes under 1 acre, our average Sold price was $985,974 OVER NINE HUNDRED EIGHTY FIVE THOUSAND which is OVER TWENTY PERCENT 20.3% higher, or OVER $166,989 one hundred sixty six thousand dollars more than the average agent sold for.

The median sold price for Brentwood was an even $800,000 eight hundred thousand dollars and the median price Josh and I sold was OVER $973,250, nine hundred seventy three thousand DOLLARS, which is OVER 21.6% twenty one PERCENT, that’s a difference of OVER $173,250 one hundred seventy three thousand DOLLARS higher than our fellow agents. So far it’s looking like the data definitely shows it does make a difference based upon the experience, market knowledge, education and marketing level of an agent, as far as what you’ll net on the sale of your home. Now lets answer the next question. Does it pay off to hire a discount broker or flat rate broker? Will you save money? Now let’s compare an agent who is a discount flat rate broker. This is an active agent whose marketing proposition is that they will sell your home for 1% if they represent both buyer and seller? Out of the 13 homes this discount broker sold, NONE of them were double ended, they did not represent the buyer on any of the 13 homes in Brentwood that they sold. So the promise of selling for 1% happened zero times. It’s also important to understand that in California it is customary for the Seller to pay the buyers agents commission. You still need to pay the agent bringing in the buyer, which on average is 2.5%. So when a “Discount Broker” says they charge 1% to list the house you need to remember that you still need to pay the buyers agent commission, and on average that ranges at about 2.5%, so in all essence you’ll be paying is 3.5% commission, not 1%. That 1% offer seems enticing and it’s used to get their foot in the door, but remember it happened zero out of the 13 homes they sold in Brentwood. So is it worth saving 1.5% to lose a whole lot more. Well again, let’s refer to the data. This agents average price comparing like for like, they sold for OVER $863,673 eight hundred sixty three thousand DOLLARS and our average price was OVER $985,975 nine hundred eight five thousand DOLLARS which is OVER +14.1% fourteen percent Higher or $122,302 one hundred twenty two thousand more.

The average median price the discount broker sold their homes for was $870,000 eight hundred seventy thousand and our median price was OVER $973,250 nine hundred seventy three thousand dollars which is +11.9 eleven point nine percent Higher or OVER $103,250 one hundred three thousand More. So, if you look at what you are losing by hiring a “discount broker” you’re losing an average of OVER $122,302 More one hundred twenty thousand DOLLARS more and a median of OF $103,250 $103,250 one hundred three thousand DOLLARS . So does it make sense to save 1.5%. Well, lets put it into perspective. If you take our average selling price in Brentwood of $985,975 nine hundred eighty five thousand dollars at a 1.5% savings you’d save $14,789 fourteen thousand seven hundred dollars. if you hired the same discount flat rate broker, but we made on average of +14.1 fourteen point one percent more which is $122,302 one hundred twenty two thousand More So to save 1.5% .you’re actually be losing over $107,513 one hundred seven thousand dollars.

So the numbers do not lie. Is it worth paying a 3.5% three point five percent commission and losing money at the end of the transaction? It’s costing you a significant amount of money by NOT hiring an agent who has extensive experience, who specializes in digital marketing, exposure, and who has a proven track record of negotiating on average $166,989 one hundred sixty six thousand nine hundred dollars more money for our sellers. We take our education seriously and are on the cutting edge of innovation and technology to get you the highest return on your investment. So give us a call if you’re thinking about selling or just looking for some advice, we’re always here to help.