A seller traditionally makes their decisions on which agent to use bases on one of two things: the one that tells them the highest price and or comes in with the lowest commission.
Economically it may sound like a great idea; in reality…it’s a recipe for failure. In 2011 over 60% of listed home went unsold during their listing period. Reason: priced too high and limited reimbursement.
In today’s economic climate, buyers are doing more and more comparison shopping than ever before on everything from milk to houses. Buyers are seeking out the help of real estate professional at record rates and earlier in their buying process. Agents are spending up to 5 times as many hours with buyers than they did just 4 years ago. Buyers and sellers are sticking to more traditional “safe” (Realtor backed listing) sales and purchases.
Recent trend reports show the decline in “private home sales” versus what buyers see as the safer way to invest their precious and sometimes limited time and funds.
David Lynch, 38, recently purchased a $200,000 home is a Syracuse suburb reported, “We originally started looking at For Sale By Owners(FSBO) home because we were looking for a deal, after months of looking we found homes we loved but were never comfortable making an offer. It seemed like a big risk to deal directly with the owner for us. We decided to work with an agent to protect our interest.WOW, what a difference it made! He explained the process in terms we understood. We were so confident with him; we listed our home for sale with him. The money we saved, more than covered the commission we thought we would have to spend for a professional service”.
Marcello Prattico a Systems Application Engineer for recently blogged about his experience as a For Sale By Owner: “After my father passed away over the holiday last year my mother decided she needed to move out of our family home of 40 years. It was as sad day for all of us. She lives on a fixed income and paying someone to sell her home seemed an expensive way to do something we could do by ourselves. We wanted to get her every cent possible from the sale of her home to invest in her next home closer to us. We did countless hours research online and when we felt comfortable with the process, we put the sign in the front yard. The only thing we weren’t prepared for was what we got. Along with the endless calls from “interested buyers” we heard every rent to own, no money down, will you hold the mortgage and low ball offer you could think of. What a nightmare it turned out to be. After rejecting our third take it or leave it lowball offer, we had had enough! Within 30 days of calling our new family Realtor, we closed on our family home for full price ($10,000 above what we were asking) and moved mom into her new home less than a block away from us. All I can say is, if I could start the process all over again, I’d start with a Realtor. I wish I hadn’t waited so long to do it the right way”. Thanks Brooks.
NO Realtor wants to have a listing expire. It means a loss of time, energy and money for the seller and the agent. On the same token, pricing a property too low will cost them money in the commission check. An agent wants the highest price possible for the condition and area the home is in, the same as their sellers.
I’m sure you would like the next owner of your home to value it the same way you do? To build the same lasting memories you have…right? You’ve decided to sell this valuable possession with a sign from the local hardware store? It seems like an ordinary value for something that has carried so much worth for you and years of service.
The Red and White sign in your front yard says “fire sale” to a buyer, and nobody pays full price at a fire sale. A For Sale By Owner buyer is looking for a bargain! The National Association of Realtors reported out of the less than 10% of For Sale By Owners that sold in 2011 on average received 86% of market value for their home.
Saving you the equity in your home is only one of the things I can do to help you get your home SOLD!
Associate Broker – Coldwell Banker Prime Properties
(315) 415-6728 – Cell / Text
(315) 671-3591 – Direct
P.S. – Even a bad waitress earns 15% - 20% for ok service. A really great Realtor only EARNS 7%.