Top Tier Real Estate Agents Don’t Discount Commissions So Why Do I?

I was reading an article on CBC's website from 2012 that was titled "Real Estate Secrets From a Pro". The first question to the real estate pro in the Q&A thread asked: "Why do some real estate agents cut commissions and others don't? The answer from the pro was: "Top-tier agents don't discount commissions because they don't have to. Agents are like cars: They come at different price points based on their performance. I always say, if an agent can't negotiate their own commission successfully, how can you expect them to negotiate for the biggest asset you will ever own?"

By all accounts, I would be labelled by my peers in the real estate world as a "top tier" agent because of the volume of transactions I do every year, year after year. A high volume of sales in the real estate industry proves my performance ability because nothing says you can do your job better than many SOLD signs consistently year after year. But the difference between me and all of those other top tier listing agents is the amount of commissions we charge. My business model is less commissions while still providing full service but if I am a top tier agent why do I discount my commissions? Clearly I don't have to according to the real estate pro. My answer to this question is simple; because I can and because I truly believe that is what's best for the consumer. I'm a believer in change when change brings about positive outcomes for those involved and that's exactly what my company, Lime Green Realty has done. The consumer is benefiting in more ways than one when they use our company to sell or buy their home, including benefiting from lower commissions and getting an agent that has a higher technical ability as well as an agent that is a more experienced negotiator because of the volume of transactions they are exposed to.

Change comes from change agents who have a vision & are not afraid to move forward. I grew up believing that just because things were done a certain way (sometimes the same way for many years) it didn't mean that they were being done the right way and it didn't mean that they couldn't be done better. I also grew up with old fashioned values that life should be fair and you shouldn't be afraid to work hard. In 2006, I left 13 years of an accounting and analytic career to join the real estate industry. I started my real estate career at a large national franchised office in Red Deer. After my first few years in the industry, I was shocked to learn of the inefficiencies in the real estate system & the money that was being spent on useless marketing that was not directly contributing to the sale of consumer's homes. The thousands of dollars agents were spending on marketing to justify their commissions to sellers was actually benefiting the agent more than the consumer. This made me realize there was a better way to do this business which would not only benefit the consumer financially with lower commissions but would benefit the level of expertise the consumer would receive from me as their agent as it would require me to be a "top tier" agent.

And this is where the concept of Lime Green Realty was born.

Lime Green Realty has taken a financial and statistical approach to determining what the least amount of commission is that can be charged for the highest level of service. We have removed thousands of dollars of expenses by utilizing technology & streamlining processes. We have determined what it really takes to sell a house & have focused our time and energy on perfecting that aspect of our business. This earns us satisfied clients who then refer us to future clients to save us the cost of having to spend thousands of dollars in advertising to market and brand our company, all of these costs savings are reflected in the commission we charge. It is a very simple concept but it makes sense to the consumer & the agent.

Referring back to the comment made by the real estate pro who commented with "I always say, if an agent can't negotiate their own commission successfully, how can you expect them to negotiate for the biggest asset you will ever own?" This is what's great about the Lime Green Realty business model, we have eliminated the need for commissions to be negotiated as we provide the consumer with the lowest flat fee possible without sacrificing service, all from a top tier agent. This concept of Lime Green Realty is unique and rare as most agents who charge lower commissions are not top tier agents or they sacrifice the level of service you receive to compensate for the lower commissions.

So, to the real estate pro that said "Agents are like cars: They come at different price points based on their performance.", I welcome you to the Lime Green Realty world where you will get to experience the performance of a Ferarri for the price of a Kia.

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*Compared to a typical rate of 6% on the first $100,000 and 3% on the balance of the sale price, not applicable for agent or relocation referrals.
**$1,500 cash back on a property that sells over $250,000 and $1,000 for a property that sells under $250,000. Commission paid by seller must be 3% on the first $100,000 and 1.5% on the balance of the sale price. Not applicable for agent or relocation referrals. May be reduced or not applicable on for sale by owner properties.
***Includes transactions from the CARA MLS System.