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We are selling our home and called 3 agents on Wednesday. Only 1 jumped on it and came to see our home. One told us he could come out sometime next week. The other said they would have to get back to me. Now mind you, we had not asked them yet about any conditions (commission, price, etc.). The one that came told us up front that if we wanted any less than 6% commission that we would not get advertised through the MLS, flyers, signs, etc. Basically, if someone called looking for something like our house they would show our house but that is it.
I am soo confused. How is that any better for us than being FSBO? It is like they do not want to advertise but still want to collect a 6% commission. Right? Please explain if I am seeing it wrong. Thanks.
All listings go into the MLS if a realtor takes the job. They are lying to you. All of the other "marketing" stuff is crap anyway. People do not buy houses they see in the newspaper. By the time they are advertised they may already have a contract. Any realtor still going that route is wasting their time.
Most multiple listing services, and the associated listing agreements, require that the listing be entered into the mls within 24-48 hours after the listing is signed - at whatever commission rate you and the listing broker agree to. If an agent tells you otherwise, call their broker. That is what is wrong with this industry - too many ill trained, ill informed, greedy agents who put their interests ahead of their clients!
Some things to consider:
1. Newspaper ads generally are a waste of time - they promote the agent and do little or nothing to generate qualified buyers.
2. Open houses are often a waste of time. There is no way to determine if the people attended are qualified or motivated. Agents do this to meet potential buyers so they can go sell them something other than YOUR house.
3. There are only three reasons a house does not sell; marketing, condition and price. Let's address each of these. The marketing should do several things. First, make the real estate agent community aware of your home - that's right, the real estate agent community. Unless your market is unique, the majority of home sales are co-brokered, meaning there is a listing agent who represents you and a buyers agent who represents the buyers (obviously). A Caravan (open house for realtors is not sufficient. if you have 50 people show up that is considered a success. We email brochures to over 3,500 active agents in our area with the ability to track who has read them) Secondly, the marketing should give you feedback - what do people like/dislike about your home. If there is a recurring theme to the dislikes, can the problem be fixed at a reasonable cost? Also, the feedback should inform you what houses similar to yours have recently gone under contract in your immediate area. Your agent should call the Buyers Agent on those sales and see if they looked at your house. If they did, what did they like better about the house they put an offer in on? Third, the marketing should generate offers. How do those offers stack up against your asking price? How do they stack up against offers those similar homes to yours received? And last, marketing should get you a signed offer that closes.
Condition is just what it says. Your home should look its best. Your agent should be able to share with you what needs to be done to get your home in optimal showing condition relative to those you are competing with for buyers.
Last, price. Don't sign with a realtor just because they quote the highest potential sales price for your home. That's a common ploy to get the listing. Then when the offers come in well below your asking price, or you are not getting any showings at all, or limited showing but no offers, your agent will recommend dropping the price to what it should have been initially. Also, resist the temptation to list the property a "little high" just to see what happens. If a property is overpriced you are only hurting yourself. If you need to sell, price it to sell. If you don't really need to sell, don't waste yours or the agents time.
By the way, this comes from broker with 25 years experience and over $350 million in sales. Not advertising here moderators, just establishing credibility to provide qualified guidance.
According to this one agent that came in the end we will end up with $20,000 and she will get $15,000! That is almost half! Is that how it normally ends up? Almost half of the profit goes to them? We may just keep going the FSBO route.
We are selling our home and called 3 agents on Wednesday. Only 1 jumped on it and came to see our home. One told us he could come out sometime next week. The other said they would have to get back to me. Now mind you, we had not asked them yet about any conditions (commission, price, etc.). The one that came told us up front that if we wanted any less than 6% commission that we would not get advertised through the MLS, flyers, signs, etc. Basically, if someone called looking for something like our house they would show our house but that is it.
I am soo confused. How is that any better for us than being FSBO? It is like they do not want to advertise but still want to collect a 6% commission. Right? Please explain if I am seeing it wrong. Thanks.
As a realtor in the Tampa area, this is my take on your situation....First of all the 6% you mention is the TOTAL commission to be paid to both sides of the transaction...3% to the listing agent and 3% to the agent that brings you a buyer. Then, each of those agents must SPLIT their 3% with their brokerage firm....sometimes these realtors are holding on to 1.5% or less! Out of that amount, they must pay for the advertising and marketing supplies to SELL your home (copying fees and "FOR SALE" signs included). Depending on how long your home is on the market (current market conditions dictate the time it takes to find a buyer), those costs can really add up!
With regard to your confusion over the reduced commission and agents not being willing to show your property, unfortunately this is a common occurrence. The inventory of available homes to show a buyer is SO LARGE....many agents have to show twice as many homes to a buyer than in past markets. If there are 25 homes for sale in your area that match the criteria of your home that is also for sale, and your home is listed with a 2% commission to the selling agent while all the other homes are paying 3% or more.....who do you think is going to get more traffic through their home and sell more quickly? The current conditions of the real estate market make it extremely competitive to sell a home. FSBO's usually have better luck in a seller's market than in a BUYER'S MARKET---which is what we are currently seeing!
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How is that any better for us than being FSBO? It is like they do not want to advertise but still want to collect a 6% commission. Right? Please explain if I am seeing it wrong. Thanks.
