Mike Browning

Tag: Real Estate Commissions

  • They Have Incentive to Undermine You

    They Have Incentive to Undermine You

    Just Getting It Done Probably Costs Your Agent Far Less Than It Costs You.

    One thing agents love to say when you hire them is that they “put your interests first.”

    And above theirs.

    Which is how it should be, of course.

    I say it too — the difference is, I actually mean it and put it into practice.

    Unfortunately, we can’t always say that about everyone else.

    But here’s the good news: we can use this to our advantage.

    If you understand what’s really driving many agents, you can often have the other side negotiating almost as hard for you as they are for their own client.

    Most agents aren’t lying when they say they’ll put you first — they mean it at the time. But reality has a way of changing priorities.

    The truth is, most agents don’t make anywhere near what they like to portray.

    Here’s what that means in practice:

    (Here’s where I say this isn’t financial or legal advice, I’m not an attorney or CPA, and all that. Talk to a professional in those fields before making any decisions)

    Say you list your property at a negotiated 6% commission, where the listing agent most likely would get 3%. If the price goes $20K higher, you net about $18.5K more. The agent? Around $600.

    And that’s ignoring any fees their broker takes. (I am the broker at my company, so I don’t always remember to factor that in.)

    So what do you think happens when there’s a “bird in the hand” offer on the table?

    Do they push for a few thousand more for you… or do they push to get it closed?

    It’s why you’ve probably experienced an agent swearing your home is worth no less than X when pitching you to get the listing — then turning around and urging you to accept less once it’s listed.

    Their goal is simple: get it closed.

    That’s human nature, even if ethics say otherwise.

    So what do you do?

    First, work with someone who actually does what they say. (Hello.)

    But just as important, work with someone who understands these incentives — and knows how to leverage them.

    When we’re selling your property, it can feel tempting to compromise just to “get it done.”

    But most of the time, if we hold tight, the agent on the other side will do the work for us — and sell their own client on making the deal.

    You benefit from that a lot more than I do — at least in the short run.

    Playing the long game means we both win.

    And speaking of the long game — does it ever hurt to have the latest info on what your property could sell for today?

    It puts you in the driver’s seat if someone comes along with an above-market unsolicited offer. Happens more often than you think.

    Got a lot you might want to sell?
    Get a FREE, no obligation report on what it could sell for today.
    Get Your Lot Valuation

    Own land instead?
    Get a report for that here:
    Get Your Land Value

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    (Commissions are always negotiable and examples are for illustrative purposes only.)

  • To Be My Client, You Gotta Meet the Standard

    To Be My Client, You Gotta Meet the Standard

    Smart people know what not to negotiate.

    Let’s get this out of the way right up front: In Texas, real estate commissions are negotiable, and there’s no “standard” percentage.

    So I’m not going to throw out a number and act like it’s an industry rule, or that everyone charges the same, or anything like that. But most people who’ve been through a few transactions know there’s a customary rate — the one most agents would like to charge unless they get talked out of it.

    That’s the rate I’m willing to work for.

    It’s negotiable, of course. That just means we both have to agree. So I’ll put it this way: if you want to pay me more, I’m open to it. Ask me to take less? No deal.

    At my customary rate, I’m one of the biggest bargains on the planet.

    In most industries, a finder’s fee is 10%. If I were locating a rare piece of equipment or recruiting executives, nobody would question it. But in real estate? People act like they’re supposed to ask for a discount.

    The answer is no. And not because I’m being difficult or trying to squeeze anyone.

    When I talk to someone about listing a property, I’m not thinking, “What do I need to give up to get this listing?” I’m asking, “Is this a good fit?”

    That question has kept me from wasting time on the wrong deals and the wrong people. It’s also helped me stay focused and available for the people who trust me to do what I do.

    Some folks won’t like how I work, and that’s fine. I think we’d both rather figure that out early.

    So here are the top ten reasons you won’t want to work with me:

    Actually, there are only three:

    1. I charge full price.
    2. I recommend realistic pricing — and I don’t take listings that are a waste of my time.
    3. I’m not on my phone 24/7. I’m responsive, but if you call or text late at night, you’ll probably hear back the next day. Saturday or Sunday? I don’t rule out weekend calls, but if I’m busy, I’m busy.

    Does that cost me some clients? Maybe.

    But the ones it weeds out are usually the ones I wouldn’t want anyway. The ones who burn too much time, drain too much energy, and expect me to chase fantasies instead of giving honest answers. The kind of people who waste everyone’s time.

    Every hour I spend dealing with that kind of client is an hour I can’t spend helping someone who actually trusts me.

    We all get the same 24 hours in a day — how we use them matters.

    Cutting commission might sound like no big deal, but it changes the whole dynamic. If I reduce my fee by 1%, I may need to do 50% more business just to make up the difference. That means more clients, more noise, more nonsense — and less time for the people I actually enjoy working with.

    No thanks.

    And here’s a question worth asking: why would you want to start a relationship by trying to get someone to work for less than they believe they’re worth? Wouldn’t you rather work with someone who’s all in — someone with judgment, backbone, and enough clarity to stand by their own standards?

    I’m not a commodity. I don’t compete on price. I work with people who want someone steady in their corner, who tells the truth and doesn’t flinch when things get complicated. That kind of person doesn’t chase discounts — they recognize fair value, and expect the same in return.

    Paying my full fee is the litmus test. Not because I need the money more than anyone else — but because it tells me we’re on the same page. That we both take this seriously.

    And if we’re not? That’s fine too. I’d rather know now.

    I might even help you find someone who’ll work for less. But it isn’t going to be me.

    Got a lot you might want to sell?
    Get a FREE, no obligation report on what it could sell for today.
    Get Your Lot Valuation

    Own land instead?
    Get a report for that here:
    Get Your Land Value

    Just a glutton for punishment?
    Sign up now to get more articles like this in your email.
    Sign Up Now