I was asked, “How can you explain that a realtor in Detroit gets paid 5% to sell a $12,000 dump, and you get paid the same 5% to sell an $800,000 house?”
I can explain it in one word.
You are offering a reward for an agent to bring you a top-dollar sale.
The commission dollars look ridiculous if you try to justify the pay as a regular hourly wage or salary job.
Consider it as offering an incentive.
If you offer $400, it won’t raise an eyebrow. If you offer $4,000, a couple of agents might start looking around for their flip-flops.
But if you offer $40,000, every agent will drop everything, go pick up their buyer and coming running over – and that’s the type of response that causes a top-dollar sale.
Then I added, “Recently I sold a house for more than 10% over list price in a carefully-orchestrated bidding war – do you think I earned the 5%?”
I will pay for myself – promise!