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"MY (fill in the blank) IS A REALTOR." CHEAP AGENTS VS. GOOD AGENTS

I hear it quite often: My ________ (fill in the blank: "friend", "sister-in-law", "cousin", "co-worker's wife", etc. etc.) is a real estate agent and they will give me a discount on their commission. (And yes, once, I did use my grandmother's midwife's daughter for one transaction.)

Sorry, I'm not impressed. There's no significant cost savings there at all.

Let's say a property sells with the standard 6% commission. That commission is split: 3% for the listing agent and 3% for the buyer's agent. Each agent has to pay their broker a significant amount, so we are looking at (maybe) a net of 1-1/2% of the sale price. On a $200,000 transaction, that's $3,000. Maybe they will give you a 50% discount so we're talking $1,500 max. That's the same as a 3/4% savings!

A good agent, however, who really knows the territory and the market and can write an aggressive offer that is realistic can save you EASILY 5, 10, 15 or even 20% of the sale price. That's a minimum of SIX TIMES the savings from a discount on a commission from your sister's hairdresser's husband!

In short, a good agent will almost ALWAYS outperform in savings a casual agent from a friend or relative. Not to mention the complexities that such allegiances can do to a relationship if you are unhappy with the responsiveness or job they do for you!

Do yourself a favor, find the best agent you can no matter "who knows who". If they happen to be "super-agent" then great, but more often than not, it is someone who does not do a lot of transactions on a regular basis and will not offset the savings an aggressive and experienced agent can get you.