Real estate investors and just property owners in general use real estate agents to help sell their homes represent them during negotiations and act as a buyer’s agent when looking for opportunities in which to invest. Successful real estate investors know that a real estate agent is an asset yet real estate commissionssome feel they’re more of a necessary expense.

That paying an agent is simply nothing more than getting your real estate in the multiple listing service and placing a sign in the front yard. And for flippers, giving an agent five or six percent of the sales price means taking that same five or six percent from your bottom line. Does selling the property by yourself make sense, without the use of an agent? As in “For Sale By Owner?”

If you’re serious in the industry then the value of an agent is not just a given it’s a proven commodity. This article won’t talk about whether or not to pay an agent a commission to sell your home but exploring the concept of paying an agent more than the typical commission rate. What’s that? Pay an agent more to sell the same home?

It’s an idea that has its place and if you think about it the concept makes perfect sense. First of all, there is no “standard” commission rate that a real estate association says you must pay to list a home for sale. Yet whatever that amount is, when another agent brings a buyer to the table, the buyer’s agent is paid a portion of the commission, usually split 50/50.

But what if you decided to pay a seven percent commission, what do you think might happen? You’ll get considerably more showings, that’s what will happen. A buyer’s agent who sees a property listed with more commission will naturally decide whether or not their clients might be interested and bring them by. With more showings, the greater the likelihood you’ll get your asking price. And you may even find yourself in the middle of a bidding war where you’re actually offered more than the list price. Don't discount this approach at all. In the right market, you will more than offset the cost of the additoinal one or two percent.