Lil Converse, Realtor "Don't Make a Move Without Me!"

2809 South Service Drive ● Red Wing, Minnesota 55066 ● Direct: 651-385-4847 ● Cellular: 651-380-1579 ● E-mail: Lil@LilConverse.com  

Providing a superior level of informed, professional Real Estate services to buyers and sellers in

Red Wing, Lake City, Goodhue, Hastings, Welch, Vasa and Western Wisconsin including Hager City, Bay City, Ellsworth, Diamond Bluff and Maiden Rock.

Cost vs. Value

There is a niche for every service, including the services of “Discount Brokers.”  Discounters are wonderful! They fulfill an important need in the marketplace for sellers who cannot afford premium service. Nevertheless, be extremely certain that this is the type of service that will best serve your Real Estate needs.

 Services can be tricky. For example, unless you know a lot about the law, finding a good lawyer is very difficult. For most of us, lawyers are one-shot deals, so we really never get a chance to see a lawyer’s results over time. In choosing a doctor, at least you get an opportunity to interact with him or her over time. You get to find out if she listens and responds or if everything you say goes in one ear and out the other. Realtors are a little like lawyers: you don’t use them often and they seem very expensive when you do. Why not just let a discount broker advertise your home, and save a bunch of money? Any product or service can be contracted for less money; however, there is always a cost. In business, cost can be a major factor for consumers; but great business minds know that cost only becomes the deciding factor in the absence of real value, quality, or service.

 The Myth: Sellers save money when they sign a listing agreement with a company that charges less. Sellers who think they’ve saved money when they sign this type of listing agreement need to realize that the true cost of their decision can’t be determined until the closing.

 When sellers compare commission rates, it's important to also compare services in order to get an apples-to-apples analysis.

 The strategy of some companies is to shift financial responsibilities—like negotiations—onto the seller. The most harmful thing a professional real estate agent can do is allow the seller and buyer to communicate directly. Few sellers are skilled negotiators, and they can give away thousands of dollars through their emotional involvement and lack of experience. Sellers also unknowingly reveal their level of motivation to sell, which can be costly. There is a reason that professional negotiators and mediators are used in contract negotiations, and even in peace talks.

 Some discount brokers try to use advertising of the property as a replacement for a traditional Realtor® by spending a lot of money branding their name, or trying to drive people to their websites. If the only thing sellers needed to sell their home was a good ad, they could do it themselves; however, the fact is that advertising doesn’t sell homes — people do. Few homes sell as a result of a classified ad. Marketing—not just advertising is critical if a seller is going to get top dollar. Some discounters try to appeal to what sellers assume they need to sell their home, rather than telling the truth about what’s needed for a successful and profitable transaction to occur. In a nutshell: you get what you pay for. 

Limited service, experience, and negotiation skills usually result in less money for the seller. Sellers who initially think “discount” may want to think again, and examine the possible consequences of those supposed savings.

 Of course sellers want to save money — who among us doesn’t? But the reality is that using a full service Realtor® will most likely net them more money at closing — and that’s when choosing value over cost really pays off!

Last modified: 12/08/06