And to add to my previous post... I would recommend all sellers interview at least two or three Realtors, and make sure they are full-time professionals. Ask for their credentials, testimonials from past clients, and their market stats, which consists of recent solds, pendings, as well as active listing inventory. In this most challenging market, you want someone that is working down in the trenches and is in-tune with what is happening day-to-day. Remember, you get what you pay for.

This question is directed to sellers but I want to answer Dp2 question blow. . No, I provide full service, discounted service does not typically result in repeat business. Look what happen to Foxton, remember them?

Dp2,

Exceptional, full-time professionals always have repeat and referral business. It is not a result of them reducing their commissions.

This is one of the few good questions I've read here and I have truly been looking.

The answer should be obvious, but there will always be those looking for a deal, that fail to realize that in life, you get what you pay for.

Nice advertisement Cascade Team! Thumbs down to that one.

Dp2,
Most if not all of my business is repeat or referral business. That is because I put the client first. Always! So, it is not a matter of reduicng my commisions. It is all about providing unprecendented service. My track record and numerous recommendations speaks for itself.

Derek,
It's simple! Sellers need to list their home with the best possible broker and agent who has dominate market share and can best market and sell their home. I refer people to agents all over the U.S> and that is the least of their requests. they just want someone to sell their homes! Full commision is well worth it and the least of a seller's worries. Would someone like a reduced wage for a job that they do full time. Perhaps, a CEO, manager or hourly worker?

I think not!

Frank Dolski
Associated Broker
Coldwell Banker Hearthside Realtors

I have property listed in another state and the market is worse there than a lot of places. I have an agent who offered a full service and a limited service. I chose to pay full price and selected the full service.

James there is no assumption. Lets say you know the agent is excellent. Let's also say that for a discount price you get less service-that's a fair assumption although I realize there are (few, in my experience out in the field, but some I suppose) exceptions. So, with that said...

I would say full fee agent, one that will get the home sold for maximum value. Discount agents provide just that "discounts" -- that affects marketing dollars, and all aspects of getting your home sold. Plus, agents that offer discounts in this market are mostly the agents you would not want representing you!

weird it didn't post, but when i re-post ..it shows up ... ? trulia what's going on...?

Sergio ...no the answer is not obvious. You get what you pay for is so frequently used in our industry that's is laughable. There are more horrible "full" fee agents than there are really good ones. Otherwise, agents wouldn't have the general negative stigma it does. Do you think those people that have had to suffer through a bad "full" fee agent would agree with you that ... you get what you pay for? .. In their cases, .they paid dearly and got a horrible experience. So ... everyone that loves that ... you get what you pay for .. phrase....really think about what you're saying. If you think you deserve "full" fee cause you're really great .. well..what is it that you do that makes you so great? When you sell a $200K house and a $1M house .. what is it that you do that's so great that you can justify the 5x commission difference? ... Was there 5x more work? Was there 5x more costs on you? So many here in this thread are saying there is a difference... ... so... tell me ..what's the difference?

Janet from NY ... so from a quick google search ..foxton's seems to be a brokerage that went bankrupt. What's your point? Were they a "discount" brokerage?

It's interesting that a 'best answer' has already been selected even though the question was directed to sellers, and only agents/brokers have answered up to this point.

From an investor's and seller's perspective, I simply want my property to sell for the best price/terms and as soon as possible. If I have to pay more to get better service, then I'll buy the property at a deeper discount to ensure that I'll have enough room in my margin when I sell it to be able to pay the commission.

Now, here's a related question for you: Would you prefer to do repeat business at a discounted rate, or receive your full fee for onesie twosie transactions?

While there are several business plans for real estate brokerages, in our market here in Florida discount brokerages tend to go out of buiness faster than the true full services. Anybody interested in doing discount brokerage work, before you do try this experiment.

Download a single months closed sales for a particular zip code using the MLS. Store this in an excell spreadsheet with only the following columns: Street Number, Street Name, Sold Date, Sold Price and Sq Ft under air (Or heat)

Do the same with your local tax records. Into a separate excell spread sheet (Be sure to have same type of property.

When done correctly you will find that the Full Serv ice broker out performs the discounter far more than the 7% commission.

Do this with FSBO and the difference is even more remarkable

In this market commissions are rising

JD Weisenburger
Coldwell Banker Vanguard Realty

At the same time ... a "full" fee does not guarantee you a really great agent.

Interesting question. Are you presuming that these two things cannot co-exist?