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If sellers are truly desperate, they should listen to real estate agents and sell their home at a low listing price to move it quickly. Or, if they want to receive even less for the home while the agent generates a quick commission, they can list it for a ridiculously low price based on the lowball "comps" that some agents produce. I'm not a real estate agent, but I've been receiving offers on my home that have been $75,000 to $100,000 above what some agents suggested as a listing price. I heard one story of an elderly neighbor who was urged by a "friendly" agent to list her home at $100,000 to $150,000 below the market value based on area sales.
Some of us aren't so desperate or stupid. We want market price, even if it means you have to work a little harder and longer for the thousands we pay you.
The bottom line is that real estate agents, especially in today's environment, want to spend as little time and effort as they can in marketing a home. A quick commission and higher profit are the order of the day and -- on a 5% commission -- let the buyer shoulder 95 cents of every lost dollar. Sorry, some of us know better. And I bet you know better when it comes to selling your own home. It's no accident that real estate agents typically fetch a higher price for their own homes than they do for their clients.
This is also consistent with my experience! And, it isn't rocket science so why pay high commissions.
Once again, thanks for proving my point. Marketing professionals would laugh at the limited range of techniques used by most agents. You don't even mention social media, yet that's being used by successful agents to market homes.
Let me ask you a question. Exactly what do you do to go out and network among potential buyers? ...
I never discussed my marketing plan but I lump social media with online. Since you specifically mentioned social media and addressed a question to me I actually shoot a video of the home and post on youtube/facebook and have the owners post it on theirs as well with the message asking their friends to click "share". But I'm telling you that stuff doesn't sell a house. No amount of marketing can overcome an overpriced or under-conditioned home. If there is one thing I do well it's position the home to sell by staging and pricing correctly. I must be doing something right because 70% of my business is from referrals and I'm one of the top agents in my market.
So just to get back on subject, your idea of creative marketing is to network with business owners and charities? As far as the rest, well I'm not in Long Island and every market is different. Those things you talked about advertising in Wall Street publications and such would be a complete waste in rural SC. As a matter of fact, advertising in any publication is IMO a waste of $$$. You are really suggesting taking out an ad for an individual house in a business journal? You want me to do that type of marketing, that's fine but you're paying me more and you're paying me some of it up front.
This is also consistent with my experience! And, it isn't rocket science so why pay high commissions.
Thanks for posting.
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Since my other post got deleted I guess I'll have to modify my statement...how does this work? If it was easy wouldn't everybody be doing it? How do you explain the 92% dropout rate in RE?
I never discussed my marketing plan but I lump social media with online. Since you specifically mentioned social media and addressed a question to me I actually shoot a video of the home and post on youtube/facebook and have the owners post it on theirs as well with the message asking their friends to click "share". But I'm telling you that stuff doesn't sell a house. No amount of marketing can overcome an overpriced or under-conditioned home. If there is one thing I do well it's position the home to sell by staging and pricing correctly. I must be doing something right because 70% of my business is from referrals and I'm one of the top agents in my market.
So just to get back on subject, your idea of creative marketing is to network with business owners and charities? As far as the rest, well I'm not in Long Island and every market is different. Those things you talked about advertising in Wall Street publications and such would be a complete waste in rural SC. As a matter of fact, advertising in any publication is IMO a waste of $$$. You are really suggesting taking out an ad for an individual house in a business journal? You want me to do that type of marketing, that's fine but you're paying me more and you're paying me some of it up front.
I'm not talking about an overpriced or under-conditioned home. I'm talking about expanding the audience for a market-priced home in good condition.
I agree that every market is different and I never suggested you go after Wall Street execs to buy a home in rural South Carolina. However, I live in an area of well-off individuals and the population includes many folks who make big salaries on Wall Street (average annual salary, including secretaries, messengers, etc. added in the mix is close to $400K).
Just as one example, it's not unusual for a person to get a good job on Wall Street, rise through the ranks, marry and start a family. At that point, their $1-$2 million apartment in Manhattan is getting a little cramped, so they look for a house in the suburbs with good schools. That's part of my target audience and they can't always be attracted just by a multiple listing, a local open house or a fancy brochure. They may not even be sure they're ready to move so you may need something to put them over the top and get them to start looking. Few agents in my area are resourceful enough to do that. And while I realize that print is largely dead in real estate marketing, one of the few (and cheapest) ways to target these Wall Street folks and the other well-off audiences I mentioned is still to advertise in their professional publications. There are print/online outlets for Wall Street analysts and business owners, as well as monthly journals for medical and dental societies. What better escape for a crazed analyst than to spot a beautiful suburban home advertised in his/her professional journal?
I also understand that your housing prices are much lower, so you may not have the profit margins on commissions as our agents do on Long Island. Around here, agents can at least do a little networking for commissions of $50K or above. Still, they buy the multiple listing (around $499), have photos taken, do up a brochure, hold a few open houses and call it a day (yawn). Beyond that, they tend to sit back and see who comes through the door. You may not have money to spend for the extra effort, but for the commission generated on a luxury home, they sure do.
Like I said, it's all relative. Our average price is around 150k. I don't necessarily agree with you that you need additional marketing but we don't have to agree. Best of luck with your situation and thanks for taking the time to expand for me.
I'm not talking about an overpriced or under-conditioned home. I'm talking about expanding the audience for a market-priced home in good condition.
I agree that every market is different and I never suggested you go after Wall Street execs to buy a home in rural South Carolina. However, I live in an area of well-off individuals and the population includes many folks who make big salaries on Wall Street (average annual salary, including secretaries, messengers, etc. added in the mix is close to $400K).
Just as one example, it's not unusual for a person to get a good job on Wall Street, rise through the ranks, marry and start a family. At that point, their $1-$2 million apartment in Manhattan is getting a little cramped, so they look for a house in the suburbs with good schools. That's part of my target audience and they can't always be attracted just by a multiple listing, a local open house or a fancy brochure. They may not even be sure they're ready to move so you may need something to put them over the top and get them to start looking. Few agents in my area are resourceful enough to do that. And while I realize that print is largely dead in real estate marketing, one of the few (and cheapest) ways to target these Wall Street folks and the other well-off audiences I mentioned is still to advertise in their professional publications. There are print/online outlets for Wall Street analysts and business owners, as well as monthly journals for medical and dental societies. What better escape for a crazed analyst than to spot a beautiful suburban home advertised in his/her professional journal?
I also understand that your housing prices are much lower, so you may not have the profit margins on commissions as our agents do on Long Island. Around here, agents can at least do a little networking for commissions of $50K or above. Still, they buy the multiple listing (around $499), have photos taken, do up a brochure, hold a few open houses and call it a day (yawn). Beyond that, they tend to sit back and see who comes through the door. You may not have money to spend for the extra effort, but for the commission generated on a luxury home, they sure do.
There is always the option, as you know, to use your own marketing strategies "by owner", with the advice of your legal and financial advisors.
What you need to do when you get over here is, first rent in your chosen state/area for a year, you will acclimate much better that way. On this side of the pond, buyers agents represent the buyer not the seller. In some states, they can represent both. So when you are ready to look, make sure your agent represents only you (ask upon your first contact with an agent) .....and, if he/she requests you sign an exclusive agreement, and you like the agent, sign the agreement. Loyalty works both ways, and the agents here do not get paid until you are settled and have taken ownership with a clear title and a deed. The buyer's agent will do the homework and research sale prices for you, and give you an idea of how much to pay, and how to make your offer, and will help you negotiate. There is no percentage "rule" per se.
www.realtor.com is worldwide and you can search for whatever your shopping list dictates.
Moving internationally is a huge leap; if you are relocating for employment, your employer is the place to start with logistics and assistance with U.S. Realtors. If you do not have employment, and are coming to the U.S. with hopes and dreams, do not do so without employment.
The best to you in your new adventure!
It's interesting you would read that into this thread, I have considered this option, but have now decided to make the most of a bad situation, (That is, being stuck in the UK).
I've just been looking through the properties on that website, and have found it to be a real eye opener, I never knew houses could be bought so cheaply. That being said, I do realise that they could be in really rough areas.
I don't see that. I see an attempt to find a short cut rather than doing that work.
(which btw can still NOT be done in any detail from afar)
One more time: Rent, experience the area, then buy if you still want to be there.
I appreciate what you are saying, but sometimes a rental property cannot fulfil ones needs.
There is also the fact that our property market is a rock bottom, (if that is possible), and any recovery in the economy will send prices up out of reach, plus, any money spent on the rent, is just wasted. (I'm not a person that will skip off without paying the rent).
You need to readjust your mindsetting. Unless the house has a fatal flaw that makes it forever unsuitable for your purpose, there is always a right price to offer. You did your research, found that the house was worth 184, needed 20-30. So, the price to offer was 154 to start - maybe 160 to make it less of a shock. They even begged you for an offer. So make one! Don't worry about insulting someone - it's business!
What I didn't say, was that this house wouldn't have been a wise investment, even at a good price.
That particular house was tagged into a housing estate, was close to a floodplain, had quite a lot of noise from local roads, and from a local air force base, and ultimately wouldn't have appreciated in value when prices start to go up.
In my area this is agent specific. I can tell you which agents price well at market, which ones price 10% over, and which ones are in la-la land. There is no general formula. Seller motivation is also a factor. Sellers that want to be closed quickly will price more aggressively than those that don't have a strict time frame for selling. I would spend less time trying to figure out the psychology of the price and just focus on your needs and desires and whether or not the property meets your needs at a price point that works for you. Rural properties are more difficult due to the incredibly variations in them, but after you have been in a few, you will start to get a feel for their value on the current market.
You said you are in the UK and I'm really hoping you are not trying to buy sight unseen. You aren't trying to do anything crazy like that, right?
Thank you, no, no chance of me doing a silly thing like that.
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