One of the questions often asked when the subject of real estate commissions comes up is whether Realtors are worth what they’re paid. Does it make sense for some Realtors to earn more than school teachers, for example? Probably not. But it’s the market that determines how much people are paid. The same market that determines that a good second line NHL centre who doesn’t sell much merchandise or put fans in the seats should be paid a few million dollars a year. The problem with the market is that there are times when it may not be in sync with our personal values. (FYI the large majority of Realtors earn less than the average school teacher, but a full time, professional Realtor can earn significantly more.)

I don’t think a good second line NHL centre is worth approximately $4,000,000 a year, but if that’s the going rate and you need a good second line centre, I’d tell you to make sure you get yourself the best second line centre available. If you prefer not to shell out $4,000,000 for a second line centre, you don’t have to. You can always sign a less expensive player. It’s a matter of value. Make sure you get the most bang for your buck. The same holds true for Realtors.

There are many options relating to real estate services and commissions today that weren’t available in the past. (Pop! Just got an idea for my next blog post.) Basically, you can pay anything from a few hundred dollars to 6% and everything in between. It’s up to you.

After 20+ years in the business, I’ve gained a pretty good understanding of what works and what doesn’t. I know that people have all sorts of reasons for hiring or not hiring Realtors (see 1,000,000 Reasons Why People Haven’t Hired Me) and commission is one of these reasons. But if your goal is to achieve the best results possible, my advice to you, based on all my experience, is to put commission aside and hire the Sidney Crosby of Realtors because the results he or she will help you achieve will provide you with the best value for your hard earned dollars. Demand excellence from your Realtor. Not mediocrity. Excellence.

Look at it this way: Pretend you can draft any NHL player for your team. Assume your only  concern is achieving the best results possible and that includes the best financial results. Would you draft Sidney Crosby or a good second line centre? Sidney Crosby, right? Nothing else makes sense. So when it comes time to choose a Realtor, hire the Sidney Crosby of Realtors because, once again, nothing else makes sense. Chances are the commission you’ll pay will be near the top end of the pay scale, just like Sid’s salary (approximately $8m a year). But it will be well worth it because in real estate, as in most things, you get what you pay for. So do your homework to make sure the Realtor you hire is indeed like Sidney Crosby. There’s nothing worse than paying $8m and getting a second line centre. Except maybe paying top commission to a Realtor who is anything less than excellent.