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In two weeks our agent will be listing our house as 'Coming Soon'. It will be under Coming Soon for another two weeks, then listed for sale. Photographer is coming this Sunday to take photos for the sale.
Our agent asked if he could show the house to an interest potential buyer on the same day as the photo shoot.
I don't have any issue with that, but I do wonder if it's appropriate and what should I do if the interested buyer makes an offer?
I assume the buyer would not be able to submit an offer until the listing went live. Is that correct? Should there be some consideration of the agents fee if the party shown the home before the actual listing ends up buying the home?
Buyer can submit an offer at any time and doesn't have to wait for any particular time. Buyer could submit an offer today.
Unless you are confident you have a good grasp of market value, I would hesitate to show the house before exposing it to the broader market.
Will the agent require you to allow dual agency?
Have you already signed a listing agreement allowing dual agency?
That is usually ill-advised, and particularly if you don't have extensive real estate experience as either buyer or seller.
Can I ask why you’re going on the private network for 2 weeks first? If your house is ready for photos already, I would slap that baby up on the MLS and let her fly! Many agents and most buyers don’t use the private network, so you’re potentially kneecapping yourself by holding it back. The fact that your agent is itching to bring his own buyers thru ahead of even going on private seems like they might be angling to keep this one “in-house” if you know what I mean.
It's appropriate if the house sells for the price you want.
Quote:
Originally Posted by phxphun
what should I do if the interested buyer makes an offer?
That's easy. If you like the offer, take it. If you don't like it don't take it.
Quote:
Originally Posted by phxphun
I assume the buyer would not be able to submit an offer until the listing went live. Is that correct?
No.
Quote:
Originally Posted by phxphun
Should there be some consideration of the agents fee if the party shown the home before the actual listing ends up buying the home?
Yes, there definitely should be.
If the buyer has no agent, your agent gets the full commission. If a buyer has an agent your agent gets half. No reason you can't insist on paying a reduced commission. If your agent doesn't agree all you have to do is refuse the offer. You'll have good reason, of course.
"Mr agent, my house is priced at $500,000 and you get 6%. Your buyer offered $475,000. I'll except that offer if you drop your commission to 3%. Otherwise, keep marketing the house until it goes for $500,000. If the next buyer brings an agent, you'll have to split the commission and get 3% anyway."
Unless you are confident you have a good grasp of market value, I would hesitate to show the house before exposing it to the broader market.
Will the agent require you to allow dual agency?
Have you already signed a listing agreement allowing dual agency?
That is usually ill-advised, and particularly if you don't have extensive real estate experience as either buyer or seller.
"Mr agent, my house is priced at $500,000 and you get 6%. Your buyer offered $475,000. I'll except that offer if you drop your commission to 3%. Otherwise, keep marketing the house until it goes for $500,000. If the next buyer brings an agent, you'll have to split the commission and get 3% anyway."
Thank you adjusterjack. That's exactly what I was thinking needed to be done. Just wasn't certain if there was anything out of line with it.
Thank you adjusterjack. That's exactly what I was thinking needed to be done. Just wasn't certain if there was anything out of line with it.
Bear in mind...
You are less competitive with this plan.
Your agent has a buyer with a full commission on the line.
Say, 3%.
Your agent has a listing with a full commission on the line.
Say 3%.
What incentive does the agent have to take a 50% haircut because there is only one property, and in dual agency, when the agent can sell your house to another party, get 3%, and help the buyer find another house and get that 3%?
I live in an area where "Coming Soon" listings are not allowed, and sharing info on a listing prior to it being published is actually punishable with big fines. Given that, I fail to see the usefulness of the practice. It's not something we do here.
My advice would be go public with it the day after pictures day, when it's ready. Show it to this buyer and all others. If you show it before it has gone public and that leads to an early offer.... tell that buyer (through their agent) that you will keep their offer and if a better one is not received by _(date that makes sense in the circumstances)__ you will contact them to resubmit it. Discuss this with your agent, so it conforms to norms and rules in your market.
Thank you adjusterjack. That's exactly what I was thinking needed to be done. Just wasn't certain if there was anything out of line with it.
Nope, not out of line. The realtors, of course, don't like it.
But the incentive to the agent is "A bird in the hand is worth two in the bush."
There are over 100 homes for sale in Ahwatukee right now. That's a lot of competition. More than 30 went on the market within the last 30 days. Many of the homes already have price cuts, which have become rather common in the Phoenix metropolitan area. The oldest listings are over 6 months, some approaching a year. The days of overnight sales and bidding above list price are gone.
Your agent knows all that and he certainly isn't going to want listings that languish for months and require price drops.
You, of course, have to decide how much money you'll be happy to walk away with and price it to sell.
Whatever the listing price is (based on comps) there isn't likely to be another $20,000 to $50,000 out there. Not with all that competition and price drops.
Best wishes for a speedy sale.
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