Sellers appreciate our services and hard work .....but how much do they really think we are worth? (incentive, appraisal)

[nealb63]

I just received a call from one of my market mailers. The gentleman lives in a neighborhood I actively farm. It is located in Pembroke Pines Florida. Just to let you know ....I lived there myself for 7 years and I know the area pretty well.

He called to tell me he was thinking of putting his home on the market. I started the conversation off by finding out what his current situation was and asked him what model he had. I also asked him when I could drop by and see the home. He told me he was unable to meet with me during the week....only on the weekend. I told him that I had a cancellation for Sunday and he told me he was too busy and that it would have to wait until the following weekend.

Before we went any further he asked me "how much do you guys charge?"I told him I usually do not discuss commission over the phone and I suggested we meet in person. I really need to see the home,the location and the condition before I could determine anything else. He became reluctant when I wouldn't give him the answer he was looking for. I decided to continue this conversation further by asking him "what exactly were you thinking of paying a full service Realtor(R) who has been doing this for almost 12 yrs." His answer was "Neal...I want to net $410,000 so whatever you get over that number will be what I will pay you". I guess he wasn't worried that the appraisal would not be an issue...yet he is asking me my opinion on what I thought the house should be priced at.

My answer to him was "well if my main objective is to get your home sold and you the best possible price in the least amount of time and with the least amount of convenience to you then if I brought you an offer of $411,000 and you accept it...does that mean you will only pay me $1,000 even if I invest my time and money and it takes 6-12 months to get it sold?" He said yes. I told him honestly if he was looking just to throw his listing on the MLS and do nothing else then I would take out my different level of services menu and work from that. I just simply refuse to take any additional over priced listings and in todays market it is important to price you home right.

I explained that most Realtors(R) are getting X amount but others are actually getting more just as an incentive for them to show properties. I'm not going to take a listing without any commitment to me and if it is not priced right then I refuse to take it just to babysit. Sellers need to ask themselves whether they want to own it or sell it.

Let's face it..most sellers want to know to main things...how much they are going to make and how much we are going to make.

I mentioned that I receive calls from many top Realtors(R) that will show my listings because of the compensation that is offered. He let it be known that he didn't have to sell but if a buyer was willing to pay his price he would listen to the offer. I started to think about that remark he made and that I haven't heard that saying in a long time. "Good luck to him."

Most of them have to spend countless hours and mileage showing 30-40 homes before getting the buyer to actually make that offer. He needed to get the most out of his listing and he would get that benefit from my aggressive advertising along with the exposure of the cooperating Realtors(R) want to show his property. I wrote a post a while back that explains my recipe for success in this market. Even now it's very hard to find buyers with the saturated inventory we are experiencing.

I ended the conversation by wishing him luck and he said if things changed then he would give me a call

[House4Sale]

I thought the realtor set the terms and the client accepts or rejects them or both parties tweak contract to meet all needs.

Anytime we were offered a realtor contract, it is as stated and then we decide whether we want to commit for 6 or 3 mos. If the exit terms are fair to both realtor and client, the comish charged is agreed upon etc. He seemed to want to tell you your terms rather than you set them and he consider them.

And if his house doesn't sell for the amt. he thinks it should, then what does that make you? Chopped liver? And what if he gets several decent ofers but doesn't want them because he doesn't have to sell etc. He just wasted all your time and advertising budget for nada.

I think his expectations are too high and I think you did you a favor by passing on that one. He should sell By Owner esp. since he claims he doesn't need to sell.

[Agnes]

Why don't you post these topics to the "real estate professionals" forum?