U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-22-2010, 08:15 PM
 
394 posts, read 851,115 times
Reputation: 325

Advertisements

Hello everyone, I know this thread has appeared before and I have read alot of the responses. My situation is one of being out in a rural water front community for sale by an out of area MLS brokerage. I am offering 3% commission to a buyers agent and have aleady dropped my price. In the last 6 months I have only been shown once however my weekend directional signs have been taken down by someone I suspect are local agents. Since my husband and I moved here we have been looked at as "come heres" so I suspect my choice of non local brokerage companys was not well received. By the way I did call on two local brokerage's however they wanted a full 6% to list my home. After verifying that they had minimal marketing and counted on walk-in traffic to sell, I choose a more progressive discount MLS company that I paid for the broker to be in our local MLS. Anyway...I suspect now that the local RE houses have alot of their inventory to sell and I am just one more house to compete with. At this point I since I have dropped my price I do not have much room to go full service, so I am considering a bonus structure or increasing the commission. I can not afford to lower the price again plus pay a bonus plus offer closing costs to the buyer...any suggestions would be greatly appreciated. Just dropping the price has not worked...doesn't get the agents to my house. Thanks...
Rate this post positively Reply With Quote Quick reply to this message

 
Old 06-22-2010, 08:50 PM
 
Location: Columbia, SC
10,578 posts, read 20,586,724 times
Reputation: 9701
I see this question a lot. Brokers don't "blackball" a home because it was listed with someone else. they want to a sale any way they can get it, not to mention buyers will find it if they are looking for something like yours and ask to see it. I suspect your problem is something different with only 1 showing, I'd bet my bottom dollar you need to reduce your price. Also, most of the time it's actually neighbors or town ordinance officers that remove signs.

Forget the bonus and reduce the price more instead.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-22-2010, 09:04 PM
 
Location: Cary, NC
40,778 posts, read 70,699,000 times
Reputation: 42242
It is not uncommon in a rural area that agents sell their own listings.
If that is the case where you are, you may be paying a severe price for bucking the local dynamic.

When you bought, did you buy a FSBO, with help from an out-of-area buyers' agent, unrepresented as a buyer? Or working with a local agent?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 09:27 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 21,286,966 times
Reputation: 6444
I lose signs all the time at some locations. I've quit putting them up in those areas. I can assure you that no agent ever messes with signs (even FSBO's).

We've found that out of area agents rarely price the local property correctly and as such their days on the market are longer. I've always been curious why sellers choose out of area franchise brokers (None of the locals around here are franchise operators.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 09:39 AM
 
28,460 posts, read 80,810,228 times
Reputation: 18656
I know one big reason that sellers choose a cheapie real estate office - they think they'll net more. I suppose if the market was HOT ther might be some truth to this, but even then the exposure of the better offices tends to result in shortest list times...

The OP is in a tough spot, and if the commission makes the difference between breaking even or losing money I can understand how tough the decision is.

If the OP's home is truly as perfectly staged as one could hope for, (which is the lowest cost way to get top dollar) if the price is as competitive as possible, if the exposure and overall marketing is as good as one could hope for, then I would say that sweetening the deal FOR BUYERS with thinks like "will pay closing costs" are better than sweetening the deal for agents, as MOST agents really want to sell SOMETHING more han they care about how big the bonus is...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 11:27 AM
 
Location: Jacksonville, FL (Mandarin)
2,538 posts, read 6,070,889 times
Reputation: 1809
Speaking on the question of whether to offer a "bonus", I've only ever viewed a bonus as just that: a bonus. AFAIK, no agent can refine their MLS search results to filter by "owner offering a bonus to selling broker/agent". Now, while I'd like to believe an agent wouldn't ever "encourage" a buyer to go for the listing offering the bonus, I'm sure it's happened at least once. But, any ethical agent would easily resist the temptation to do that. Just like chet everett said, these days, most agents would be happy just to get any sale.

Mike Jaquish asked a great question, above, too.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 06:41 PM
 
394 posts, read 851,115 times
Reputation: 325
Default Bonus Question...

Quote:
Originally Posted by MikeJaquish View Post
It is not uncommon in a rural area that agents sell their own listings.
If that is the case where you are, you may be paying a severe price for bucking the local dynamic.

When you bought, did you buy a FSBO, with help from an out-of-area buyers' agent, unrepresented as a buyer? Or working with a local agent?
No we purchased from a local broker, one of the two that I approached to list with at 6%. They have the best location in town for visitors on weekends etc and they probably get alot of walkin traffic. Actually they were the ones whom showed my home however we did not get an offer. My girlfriend works for them as an agent and told me that they get a extra bonus for selling their own lisitings. As for my missing signs there is alot of traffic that drives by our street on their way to a recreational island. It is interesting that yard sale signs do not get touched but my directional signs get taken down...anyway enough of that I guess. As for determining an appropriate price for my home it has been hard as I am using the local agents pricing on similar homes as a guide. I was hoping by maybe offering more commission or a bonus and dropping the price I could compete with their internal incentives and in this ecomony the agents might be more interested in showing my wonderful home..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 07:47 PM
 
Location: Cary, NC
40,778 posts, read 70,699,000 times
Reputation: 42242
Quote:
Originally Posted by Rudydog1 View Post
No we purchased from a local broker, one of the two that I approached to list with at 6%. They have the best location in town for visitors on weekends etc and they probably get alot of walkin traffic. Actually they were the ones whom showed my home however we did not get an offer. My girlfriend works for them as an agent and told me that they get a extra bonus for selling their own lisitings. As for my missing signs there is alot of traffic that drives by our street on their way to a recreational island. It is interesting that yard sale signs do not get touched but my directional signs get taken down...anyway enough of that I guess. As for determining an appropriate price for my home it has been hard as I am using the local agents pricing on similar homes as a guide. I was hoping by maybe offering more commission or a bonus and dropping the price I could compete with their internal incentives and in this ecomony the agents might be more interested in showing my wonderful home..
Rudy,
You used a local guy to buy, but not to sell?
Why didn't you use an out-of-town guy to buy? Because the local guys get it done, and had the visibility.

I'm not saying you are right or wrong, or that the locals are right or wrong. I'm just saying there may be some local dynamic that you are trying to buck, and you may be paying the price.

Is a anyone selling anything there right now?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-23-2010, 11:00 PM
 
Location: The Greater Houston Metro Area
9,053 posts, read 16,324,425 times
Reputation: 15223
I am very curious why you didn't let your girlfriend list it, especially since she actually works for the local brokerage, who has their finger on the local pulse. My guess is that the out-of-towners listed for less. Bad move.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-24-2010, 01:16 PM
 
Location: DFW - Coppell / Las Colinas
39,636 posts, read 45,094,611 times
Reputation: 51028
A note about your directional signs that are missing .... many cities / HOA's, etc have ordnances that prohibit or restrict signs. You may be violating these laws and someone officially is taking your signs. Happens to us agents all the wrong time if we put them in the wrong spot, wrong hours, wrong sign language.

Any sign placed in a public right of way is many times considered "Abandoned" and anyone can take it. Once you put it out on a public street it is no longer your sign.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top