I ran across my comments to CBS for writing an article entitled the aforementioned on 5/13/07.  Thought some of my colleagues could pick up some hints from my comments below back to CBS.  Also, thought some buyers and sellers could get a better understanding.  There’s more detail I could share, but, this is more than enough for a blog.

It’s disappointing to see the lack of investigative reporting by CBS.  It would’ve been appropriate for CBS to have interviewed some really hard-working full-time Realtors!

Commissions are negotiable, so it’s inaccurate for CBS to state a blanket 6%.  Consumers get what they pay for.  I not only promise full service on a fiduciary level (not just a functionary level), I literally deliver it.  If I can’t negotiate my own commissions very well, then, how well do you think I will be able to negotiate the best price and terms for you?   If you expect me to reduce my commissions right up front at the time you sign a listing agreement, then, when it comes time during the negotiations of a buyer’s offer who can’t come up anymore and you (the seller) can’t come down anymore, well, I can’t help you because you’ve already taken a chunk out of my hard-earned commission from the beginning.

My files are full of essential papers on my client’s transaction that ends up 1-3” thick!  I’ve had clients call me 1-3 years later needing something out of my file because they’ve moved and misplaced their copy.  By the time I pay my expenses (Realtors are independent contractors and do not have any employment benefits and our broker doesn’t pay employment taxes) and charitable donations out of my commission split, I end up putting about 1/8th of the total commission in my pocket to pay my own household expenses.  I concentrate on my client and their needs, whether it’s a $60k trailer at 1/8th of 6%, a $600k house at 1/8th of 4%, or a $1 million property at 1/8th of 2%!

From the buying side … on average, a buyer’s agent will work with a prospective buyer for 2-6 months before they actually make an offer on a property.  Prior to that, the agent may have originally been contacted by phone or email an average of 3-18 months before the buyer wants to physically go inside some homes.  During that time, the agent is sending search results by mail or email, answering questions, educating the consumer, providing lender contact information, pre-qualifying the buyer, coordinating with their lender, previewing properties, providing valuable tips, etc. etc.

As a listing agent for the seller, while spending my money on marketing the property, I lend furniture to my clients to make their home more presentable, get sweaty moving furniture with my clients to make the walk thru for buyers less cluttered, spend out of my pocket additional advertising money beyond what my broker pays to promote the sale, give advice and contact information for improving the curb appeal of the home, have netted for my seller more than the market value because of my online marketing and website, give my listings a presence on an impressive number of websites, protect my clients with the proper disclosures that prevents the seller from providing a two year warranty on the property, etc.  Value-added service!

So, next time CBS does any reporting on “chipping away” at Realtors’ commissions, I hope they interview a hard-working full-time Realtor.

THANK YOU!
Cynthia Hash, Realtor/SRES
Keller Williams Realty, Charlottesville VA
Cell: (434) 531-5351 — Email:  hash@kw.com
STATE-OF-THE-ART REALTOR:  www.FindHomesInCharlottesville.com
GET HELP … CAREGIVERS LIBRARY:  www.CynthiaHashCares.org
IS YOUR HOME PAID FOR? … www.U1stFinancial.net/CynthiaHash