Selling your Home in Today's Market
I am sharing 17 years experience with you in an effort to save you time, money and the pain of working with a bad agent!
There are two types of listings:
Those that sell and those that don’t.
The ones that get sold have three things in common:
The ones that become withdrawn or expired have three things in common:
Sadly these often become foreclosures. Banks tempt people with debt consolidation and often leave people bankrupt. Refinance and 2nd Mortgage appraisals are often very liberal to accommodate the bank but the homeowner is in trouble later. Sellers will often mistake these appraisals as valid for a new purchase and they are not! Sellers sometimes price their homes according to other overpriced homes in the neighborhood. With a little research one can determine how long those have been on the market and what the list price history is. We do this for you up front. When sellers ask to start high and “see what happens” we save you months of agony by showing you what happens. They are called expireds or withdrawn listings when the seller starts too high and that property listing history shows a common trend of downward listing price over time. By the time the seller finally prices the home right he has missed the window of excitement caused by a new listing, 1-3 weeks.
There are two types of listing agents:
Those who sell their listings and those who don’t want or need to.
Agents who actually get them sold do the work up front to determine the highest “realistic” range of value for the home based on area solds, condition, and market trend for the area. A good listing agent will contact other Realtors in the area regarding the new listing, list the property in the Multilist, submit to other search engines such as Realtor.com that reach more people (more cost to the agent), relocation sites to reach people relocating, Craig’s list, other networking sites, virtual tours as well as national company websites such as www.RealEstateOfColorado.com A good agent will also walk or mail 200-400 flyers to nearby homeowners letting them know that there is a new listing in the area and ask them to think about friends and co-workers who may be interested in moving to the area. Open houses are also a good way to expose the home to the public. Remember lookyloos tell their friends and co-workers! A good agent will communicate with the seller regularly and make improvement suggestions that will make the home more attractive. A good agent will have all documents and disclosures available for other Realtors and negotiate on behalf of the sellers with regard to price, inspection items and concessions to the buyer. The seller needs to be advised also of the potential obstacles within the under contract process and know when and where to negotiate. Many of these obstacles are time sensitive. Good agents also have a rolodex of contractors such as plumbers, electricians and handy people to help in the event of a maintenance issue. A good listing agent has a reputation of getting the job done and net the most $ for their sellers. This does not happen by charging the least amount of commission but by doing the work to get the home sold for the highest amount. This takes work, time and expertise. See our list of tools for getting homes sold.
Then there are…………
Agents who don’t want or need to sell your home. They intentionally overprice your home and offer lowball commissions. Many sellers are swayed by the agent who does this but will later suffer. Here’s why. Sellers are often fixated on commission as though there was a direct correlation between commission and net proceeds similar to interest rate. It’s always good to get the lowest interest rate when securing a loan. Commission rate, however, has little to do with your net when selling a home. A perfect example are the discount brokers who work on volume. They list your home in their little website and magazine often without MLS, stick a sign out and Hope U Sell it. In order to make any money they have you drop the price to get it sold either up front or later. Seller is fixated on the cheap cost to list and doesn’t notice that he is going to net less because of the lowball sale price.
So why are some agents happy to list your home for peanuts and tell you whatever you want to hear regarding the listing price? They spend very little money, often just a sign, a lock box and some flyers. Sometimes they will even take the time to do an open house. You see their signs all over so you think they must be successful. They are; not at getting listings sold but rather milking the listings for buyers! Buyer Agents get approximately 2.8% commission and spend less than listing agents to get that 2.8%. If a seller offers less than that to the buyer agent (its posted in the MLS) the buyer agent may not show it.
By the time the seller figures this out his cheap discount agent cannot be reached as he/she is busy showing properties to all the buyers they got from your listing at 2.8% each! Now you are ready to find that good agent or sell it yourself!
If you are thinking of selling your own property remember NOT to build a commission into your price if you are not paying one. Those MLS comps all include approx 6% commission and the public knows it so be priced accordingly. For sale by owners (FSBO) think they will “save” the commission by selling it themselves but forget that There are no FSBO’s in the MLS database where Realtors and Appraisers go for comps.
The public is aware and usually lowball by more than 6%. Remember people shopping FSBO’s are looking for bargains. Showing your home to unscreened strangers can also be dangerous not to mention holes in faulty contracts and your liability long after closing.
Ok, now for some good news!
It’s worth pointing out that there are very good buyer agents out there who also deserve their weight in gold. They do their homework and take care of their clients. There are great listing agents who save you time and money by being honest and hardworking. It would be unfair to expect a good listing agent to receive less than 2.8% (what the buyer agent gets) for all their time, money and work they put in to getting your home sold. The two positions are much like having two jobs and have very different detailed tasks so remember your agent is doing two different jobs when he/she Lists your home and also acts as your buyer agent. We offer full service listings at 3.2% for the listing agent (or) 2.8% listing agent if you also let us help you buy a home with simultaneously closing on the same day. Remember when pricing your home according to the MLS the commission is "built in" to the price. There are no For Sale by Owners in the MLS just for sale by Realtors so that listing and coop commission is built in.
We offer detailed net sheets for you to see what you will receive at closing. Our contracts are NOT binding as we feel trust has to be earned. Cancel at anytime prior to being under contract and only owe us for our “actual” marketing expenses. That’s our PROMISE TO YOU. We will never leave you stranded or charge for something we don’t do.
Over 80% of our business comes from repeat business and referrals. The only way to make that happen is by being honest and treating people with dignity and respect. We choose who we wish to work with and so should you!
Tony and Cindy Anderson
Real Estate Of Colorado LLC
303-810-8382, 1-800-707-1087 ext 1