Advice about lower commission real estate agencies? (moved from the NC forum) (5%, new agent)

[Zeelee]

Has anyone used a lower commission real estate agency? For example, a few local agencies offer a total commission package of 2.4% to buyer's agent and a fee to the agency. Does anyone have any advice as to why this type of agency would NOT be the way to go? In other words is it necessary to use a well known, full price commission agency to sell your home? Anything about this topic would be appreciated. Thanks!!

[CarolinaCowboy]

My advice to you is simple. Price your home right and it will sell, no matter whom is trying to sell it. This includes yourself. Assuming you have some basic marketing skills. You can place your home in the MLS for $300 and on hundreds of websites for free. 98% of potential home buyers start their search on the webb, in the MLS, or both. It is a bit of doing, but not rocket science to sell your own home. I've purchased 2 homes and sold 3 in the past 5 years, all without the service of an agent. Spend 10% of the fees you would on an agent and get yourself a dcent attorney to close for you. Afterall 70% of everything you sign at closing is so that you cannot sue the agents involved in the deal, so why bother? Just go around them from the get go. My 02 cents.

[MikeJaquish]

Originally Posted by CarolinaCowboy

My advice to you is simple. Price your home right and it will sell, no matter whom is trying to sell it. This includes yourself. Assuming you have some basic marketing skills. You can place your home in the MLS for $300 and on hundreds of websites for free. 98% of potential home buyers start their search on the webb, in the MLS, or both. It is a bit of doing, but not rocket science to sell your own home. I've purchased 2 homes and sold 3 in the past 5 years, all without the service of an agent. Spend 10% of the fees you would on an agent and get yourself a dcent attorney to close for you. Afterall 70% of everything you sign at closing is so that you cannot sue the agents involved in the deal, so why bother? Just go around them from the get go. My 02 cents.

Well, those 2 sentences got me a little curious. What documents are you referring to?

And typically around here, the Buyer selects the closing attorney, not the Seller. Of course, it is negotiable, but less common for the Buyer to use the Seller's chosen attorney.

Now you made me want to ask, "What do you DO?"

[MAtoNC!]

Now you made me want to ask, "What do you DO?"

LOL! Why can't I give you rep points for the laugh?

[uncletupelo]

In this market fsbo's are like playing the lottery. I have sold two fsbo properties itb but that was back during the gold rush so to speak. Unless your home is close to perfect, going fsbo is not a wise idea. You will lose money in the long run. Mike J can explain why. A top notch realtor is worth 5%(just ask and they will come off the 6%). Ask around and find out who the best agents are. I am shocked to see so many people pick an agent who is a friend or neighbor. Or pick a north Raleigh agent to sell a house ITB and vice versa. Agents in this big little town specialize in an area. A great one can show you homes before they ever hit the MLS and do the same for your house. It is idiotic to think you can sell your house fsbo in this market. It is a risk/reward situation. Buyers watch fsbo's sit and expect/demand that they lower the asking price when listed by an agent. You also risk your home going stale. Buyers assume something is wrong and will not even go inside. Just like every industry-you get what you pay for. Period.

[CarolinaCowboy]

Originally Posted by uncletupelo

In this market fsbo's are like playing the lottery. I have sold two fsbo properties itb but that was back during the gold rush so to speak. Unless your home is close to perfect, going fsbo is not a wise idea. You will lose money in the long run. Mike J can explain why. A top notch realtor is worth 5%(just ask and they will come off the 6%). Ask around and find out who the best agents are. I am shocked to see so many people pick an agent who is a friend or neighbor. Or pick a north Raleigh agent to sell a house ITB and vice versa. Agents in this big little town specialize in an area. A great one can show you homes before they ever hit the MLS and do the same for your house. It is idiotic to think you can sell your house fsbo in this market. It is a risk/reward situation. Buyers watch fsbo's sit and expect/demand that they lower the asking price when listed by an agent. You also risk your home going stale. Buyers assume something is wrong and will not even go inside. Just like every industry-you get what you pay for. Period.

I totally disagree. All good agents will tell you that if a home is priced within the top 5% of any given price range it will sell quickly. It is all about price today. Sure, the home needs to be properly staged and the seller needs to know how to sell a home and so on, but it can be done. Price and price alone dictates and supercedes all other factors in the housing market. The buyers will find you if your home is ready to sell and priced in that top 5%. If there are 10 comparable homes in my neighborhood for sale from say $305-$325 and I FSBO mine at $305 or under, it will move or stands just as good a chance of selling, even FSBO. The homes at the higher range will likely sit and sit somemore, no matter who their agent is. The buyers will want to see the other homes and will chose the homes priced to sell each and every time.

[uncletupelo]

The stats on fsbo's prove you wrong.

[Native NC]

Originally Posted by Zeelee

Has anyone used a lower commission real estate agency? For example, a few local agencies offer a total commission package of 2.4% to buyer's agent and a fee to the agency. Does anyone have any advice as to why this type of agency would NOT be the way to go? In other words is it necessary to use a well known, full price commission agency to sell your home? Anything about this topic would be appreciated. Thanks!!

Zeelee, I have used one this year. I began with a full service agency but quickly realized the effort this market demands to make a sale, wasn't going to happen. I had a very successful outcome with FSBO and if you'd like to direct message me, I will share the name of the agency and who you should speak with.

[boocake]

It's not just about selling. There are a million other issues that come up AFTER the contract is signed, and believe me, depending on your situation, it can be a HUGE help to have a professional on your side to deal with inspections and other issues and making sure you get to closing smoothly.

That being said, I sold 3 different properties in Wake County since 2001 - one in Fuquay and two in North Raleigh - using one of the local discount realtors and sold all 3 homes VERY quickly and had all the support I felt that I needed all the way to closing. I'd recommend them in a heartbeat. I saved tens of thousands of dollars over all 3 sales by using them over a traditional realtor.

[CarolinaCowboy]

Originally Posted by uncletupelo

The stats on fsbo's prove you wrong.

Actually you are wrong again. You have read my post, selectively and not actually. Again, price supercedes all. Most FSBO who do not sell their home, did not do their research and overprice their homes. Or, they simply want to list their home at a price they know is over market conditions and simply are wanting to "see if they can sell at the higher price." The first thing an agent does when they come to list your home is preach at you about pricing it properly. This usually is a sales pitch to try and convince you to list your home lower then other comparable homes in your area. This is because they know price is what sells a home.

When you have one agent take over another agent's listing, because the property owner gets sick of their home sitting with no activity, the very first thing the new agent will try and do, is get you to drop that price, by a lot.

I home that is priced properly, that has the ability to reach the pool of potential buyers, has the very highest possibility of selling no matter whom or how that home is listed, period!