Why Choosing the Cheapest Realtor Could Cost You Thousands of Dollars

by Moataz (Mo) Elshamy

Before You Hire an Agent Based on Commission Alone, Read This First.

A homeowner once told me:

"I went with the cheapest Realtor because I thought I'd make more money."

Unfortunately, that's not what happened.

He later found out that a stronger, higher offer had been submitted on his house, but it was never properly presented to him.

Instead, the agent pushed a lower offer from an unrepresented buyer because it meant more compensation for the agent.

The seller was devastated.

He thought he was saving money.

Instead, choosing the cheapest option cost him money.

And sadly, I've seen versions of this story many times.

The Cheapest Agent Can Become the Most Expensive Decision

Many sellers believe:

Lower commission = more money in my pocket.

Sometimes that's true.

Many times, it's not.

Because here's the real question:

Percentage of what?

Saving a little on commission means nothing if:

Your home sells for less.
The marketing is poor.
Buyers never hear about your property.
Offers are mishandled.
Communication is terrible.
The transaction falls apart.

A great agent can often help you net more money even after paying a fair, reasonable compensation.

If an Agent Can't Negotiate Their Own Compensation…

How are they going to negotiate the best price for you?

I know this may sound blunt, but it's a fair question.

If someone immediately discounts themselves just to win your business, what message does that send?

You want someone who believes in their value.

Because the person negotiating for your house should know how to negotiate.

The Biggest Mistakes Sellers Make When Hiring a Realtor

Mistake #1:

Choosing the Agent Who Gives the Highest Price Opinion

This is probably the biggest mistake I see.

Some agents tell sellers exactly what they want to hear:

"Your house is worth way more."

The goal?

Get the listing.

Then months later:

Price reduction.

Another price reduction.

Eventually the seller becomes emotionally exhausted and may end up selling for less than they should have.

I always tell my sellers:

I'd rather disappoint you today than disappoint you six months from now.

Mistake #2:

Choosing Based on Commission Alone

Focus on the value.

Not the percentage.

Because percentage of what?

A lower commission doesn't matter if the house sells for less.

Mistake #3:

Choosing a Big Name Just Because Everyone Knows Them

Some agents are great marketers.

Some are simply well-known.

Those are not the same thing.

A big name doesn't guarantee:

Better service
Better communication
Better ethics
Better results

Mistake #4:

Hiring Someone Because They're the Same Ethnicity

I know this happens.

I see it all the time.

People hire someone because:

"They're Italian."

"They're Jewish."

"They're from my community."

That alone doesn't mean they're the right person for the job.

Hire based on:

Competence
Reputation
Ethics
Reviews
Results

Mistake #5:

Hiring a Part-Time Agent

Selling a home is too important to be someone's side hobby.

You want someone:

Available
Responsive
Present
Fully committed

Real estate doesn't happen from 6 PM to 8 PM only.

What Questions Should You Ask Before Hiring a Realtor?

Are you full-time?

How do you determine price?

What's your marketing plan?

How will you communicate with me?

What happens if my home doesn't sell?

What makes you different?

How will you reposition my home if needed?

Will you present every offer to me?

Will you treat represented and unrepresented buyers equally?

Will you put my interests ahead of your compensation?

Those are powerful questions.

And every seller deserves clear answers.

A Seller Once Told Me…

I had another seller who interviewed seven different agents.

I wasn't the cheapest.

I wasn't the highest.

But after interviewing everyone, he said:

"I trust you."

He later told me:

"I've never seen an agent work the way you do."

Showing houses morning and night.

Answering questions before they were even asked.

Communicating constantly.

Putting his interests first.

That's value.

And that's what sellers should be looking for.

The Truth About Discount Agents

Not every discount agent is bad.

And not every expensive agent is good.

But I've seen this happen repeatedly:

Agents who discount their commission often discount their service too.

And sometimes they try to make up the difference elsewhere.

You deserve someone who puts your interests first.

Not their paycheck.

If I Could Give Every Seller One Piece of Advice…

It would be this:

Choose the agent who tells you what you need to hear, not what you want to hear.

The truth may not always feel good.

But the truth gets homes sold.

Final Thoughts

Your home is likely one of your largest assets.

Don't hire someone based solely on who charges the least.

Focus on:

Value
Reputation
Ethics
Experience
Communication
Results

Because choosing the right Realtor isn't about saving a few dollars.

It's about making the right decision for one of the biggest financial transactions of your life.

Thinking About Selling Your Long Island Home?

Interview agents.

Ask questions.

Do your research.

And if you'd like an honest conversation about your options, call or text Mo The Realtor.

A 15-minute conversation could potentially save you thousands of dollars and months of frustration.