Are Two Realtors Better Than One?

Are Two Realtors Better Than One?

Crazy Woman has been asked just that… Two must be better than one, should I list with another Realtor to get my property sold faster?

Let’s consider a few points. Remember when you list your property with a Realtor, you have already listed with the largest Association in the US.

Those Realtors all, nationwide, have access to view your listing via the NAR website. Locally, every Realtor has access to all of the listing information for presenting to potential buyers, via the MLS, multi list service. The agreement between the Realtors is detailed in your listing agreement. In more cases than not, the commission is split, divided equally between the listing agency and the selling agency. This offering from the listing agency, or your sellers agent, is great incentive to cooperate and bring a buyer.

When you chose to co-broke, or list with more than one agency, generally the commission is increased. Marketing costs are not decreased or divided; they are doubled. Each Agency marketing the property. Agency’s are spending the same amount of marketing dollars, yet the return will be less. It is costing you more money, when both agency’s have the opportunity to bring a buyer, and will.

An example, your property, listed at $100,000; commission is 6%. The agency places it on the mls, periodicals, local advertising, property signage, brochures and additionally has overhead of operating the business, mls charges, advertising fees, signage costs, computers, office space, paper and office supply, association dues, vehicles and maintenance, telephones and internet, etc, and half to the buyers agency. Now add another brokerage into the mix… the commission is still at 6%, upon the sale half or 3% goes to the agency bringing the buyer, the two agency’s you co-broked with split the remainder, or 1.5% each. Yet expenses were the same for each. Commission is not usually increased by 1/3 to benefit equal opportunity of expense recuperation.

When a property is co-broked with two agency’s, even with increase in commissions, there is reservation of marketing due to decrease in remuneration and potential inability to recoup monies spent. After all, it is business, the intention is to make money, breaking even in business does not put food on the table at home.

Crazy Woman’s policy is not to co-broke without special consideration for additional commission and/or seller contribution to expenses. Does this benefit the seller? We think NOT. List with a Realtor. Have confidence in your Realtor. Make your property marketable. Price your property marketable. Allow your Realtor to market it.