With regard to agent costs, an agent must add more value than they charge.
Often people will hire an agent based on the answers to these two questions: how much will you get me? What do you charge?
On the surface these questions will appear to be a fair and reasonable way to choose an agent. However, they are the wrong questions.
Smart sellers understand that superficial questions will invite superficial answers. You have to dig deeper than the superficial to make a smart decision. Consider this, if an agent charges you an extra $5,000 yet obtains $20,000 more for you because of their superior negotiation knowledge and strategy, that agent is $15,0000 more valuable to you than the cheaper competitor.
Any agent being interviewed must be able to prove their value to you.
Always consider value as opposed to cost when selecting an agent. Rarely is the cheapest agent the best agent.
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