How to Compare Real Estate Agents in New Jersey: Compare the Service Not the Fee

To compare real estate agents fairly, put their full list of services side by side: marketing, pricing strategy, negotiation, experience and how they'll communicate with you. A fee only means something next to what you get for it, and the number that matters most is what you walk away with after the sale, not what the agent costs.

I'm Dennis Mark Interdonato with The Dennis Mark Group at Keller Williams Realty Ocean Living. Sellers in Monmouth and Ocean County sometimes tell me, "You're a lot higher than the other agents we're interviewing." My answer is a question: can you give me everything they're going to do for you, so we can compare apples to apples?

Are real estate commissions set or standard in New Jersey?

No. Commissions aren't set by law, and no rate is standard. The fee is whatever you and your agent agree to in writing, for the services that agent agrees to provide. That's exactly why comparing the services matters as much as comparing the number.

What should you compare when you interview agents?

Ask every agent you interview for the same thing: a written list of what they'll do for you. Then compare these five areas.

1. Marketing: how will buyers find your home?

• Who takes the photos, and is there video, a floor plan or drone footage?
• Where does the listing show up besides the MLS: social media, email lists, print, the agent's own website?
• Is there a launch plan for the first two weeks, when the most buyers are watching? (Here's why the first two weeks set the price.)
• Will they help with staging, cleaning or pre-listing updates?

2. Pricing strategy: how will they arrive at your number?

• Do they walk the home and look at condition, not only square footage?
• Do they show you closed comparable sales, and explain why each one counts?
• Do they give you more than one plan, such as selling as-is versus making a few updates first? (See whether to update or sell as-is.)

3. Negotiation: what happens when offers come in?

• How do they handle multiple offers?
• How do they handle inspection requests and appraisal gaps?
• Can they give you real examples of deals they kept together?

4. Experience: have they been through hard transactions?

• How long have they been selling, and in which towns?
• Have they handled estate sales, court-appointed sales, or sales with problems found at inspection?
• Do they understand construction and condition, so they can explain what an inspector finds?

5. Service and communication: what will it be like to work with them?

• How fast do they get back to you, and how will they update you?
• Do they have a team of trusted contractors, inspectors, attorneys and lenders they can refer?
• Will they explain each step in terms you understand?

Why isn't the lowest fee always the cheapest choice?

Because the fee is only one side of the math. What you actually care about is your net: the sale price minus every cost. If one agent's marketing, pricing and negotiation bring in a higher price or better terms, that can matter more than the difference in fees.

In one Beachwood sale, a pre-listing plan of under $15,000 in updates led to $75,000 more than selling as-is. In one Howell sale, the seller had an accepted offer within the first 7 days after 6 offers came in over asking. Those results came from the plan, the preparation and the marketing, not from the fee. Every home is different, and past results don't guarantee future ones, but they show why the service list deserves a close look.

What does my own service list look like?

I tell people what they need to hear, not what they want to hear, so here's what you get when you work with me:

• A construction-level walkthrough of your home from a former New Jersey home builder and remodeler.
• A written plan, often with two game plans side by side, priced from recent comparable sales.
• Help choosing updates, products and colors when they make sense, and trusted contractors with no markup from me. I got a guy for everything.
• A full marketing launch timed to the first two weeks. See the selling page for what's included.
• Negotiation from offer to closing, and clear updates at every step.

By the time we're done, you're not going to have any questions left. If you're still not sure the difference is worth it after we talk, then I haven't done my job showing you.

What are the most common mistakes people make when choosing an agent?

• Comparing the fee before the service. A fee without a service list isn't a comparison.
• Hiring whoever quotes the highest price for the house. A high number wins the listing; it doesn't sell the home.
• Hiring someone because you know them. Knowing someone is a good reason to interview them. It's not a reason to skip the comparison.
• Not getting it in writing. Ask for the services, the fee and the length of the agreement in writing.

Frequently Asked Questions

Are real estate commissions negotiable in New Jersey?

Commissions aren't set by law. The fee is agreed between you and your agent in writing, along with the services they'll provide.

What questions should I ask a real estate agent before hiring them?

Ask for their full marketing plan, how they set the price, how they handle offers and inspections, their experience with hard transactions, and how they'll keep you updated.

Is a cheaper agent a better deal?

Only if they deliver the same service and the same result. Compare your expected net after the sale, not the fee alone.

Do buyers sign an agreement with their agent too?

Yes. Written buyer agreements are now standard practice before touring homes. The buyer agency page explains how it works with me.

This is general information, not legal, tax or lending advice. Every fee is set by written agreement between you and your agent.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark or see what past clients say on the testimonials page.

Keep reading

• Are all realtors the same?
• The New Jersey selling guide
• See what your home could be worth
• Have a question this didn't answer? Send it to Dennis Mark.