Need advice please a first time home seller (RE agent, contingencies, feedback)
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We attempted to sell our house last year with a flat fee FSBO type broker paid up front. It didn't sell and his service was poor, imagine that, no skin in the game. We took it off the market.
I am debating asking for a partial refund, and find a broker that would represent for 1 or 1.5% since listing agents don't sell homes, even listing agents said that.
Our house looks great on the outside fresh paint and new roof, but we have no updgrades at all since it was built. We keep our house so clean it looks brand new inside. I understand that we should price it accordingly since unlike our neighbor we have no upgrades. If we list it should we just put "builder grade"?
I am just debating keeping the flat fee FSBO guy because the market is good and even if he continues to not return calls demand may take care of that.
If we go 1 or 1.5% percent then obviously I expect better service, for example I want that lock box that has records of who came and went so I can leave for the holdidays and feel comfortable. Or atleast the option to upgrade to better lock box.
I'm a little confused. You had a flat fee broker and the house didn't sell. In my area for the flat fee you are typically getting a MLS listing. You pay up front and if it doesn't sell, the fee is not refundable. You get a listing only, not the agent's time, advice, representation or anything beyond basic calls regarding changes to the listing.
For the 1 or 1.5% you'll get a little more. You won't have to pay up front, and an electronic lock box is not out of the question, An initial CMA and consultation regarding marketing the property. Beyond that, not so much. Don't expect full service for half fee.
You're being penny wise and pound foolish. You're looking for someone to work for a lot less than normal. The agent won't be putting a lot of effort or time into your listing when the pay off is so much better on another. You'll not only get limited service, but the agent on the other end may be very hesitant to show your listing because any contract means they have to do the job of both agents and only get paid for one side.
If you are an experienced buyer/seller of real estate and have no problem fielding calls, negotiating, marketing and can be available for buyers, other agents, inspections, appraisers, repair people, etc., then the flat fee agent is probably the best way for you to go. Just don't expect service for which you aren't paying.
Let me clarify we paid flat fee enhanced. We have him $700 which was in include escrow and closing. Since we are considering terminating our agreement with him I feel he should keep the fee list amount $200-250? and we should be refunded the remainder.
I can negotiate quite well I have been in sales a long time. We both work from home, currently, so being available for people to come by is no issue.
I really don't buy into listing agents doing much, sorry, it's a great deal for them. Sign up a bunch of people and collect your 3%. Buyers agents sell properties not listing agents.
Just to be clear we have always offered the full fee for the buyers agent.
And yes I don't expect full service at all, I tend to be more DIY. I just want a realtor that will return calls and ensure that they are giving the code to the lockbox to an actual realtor not much to ask.
So, you agreed to pay $700 up front and you gave the list agent $700. Now you want to cancel your agreement. Why in the world would the list agent agree to give you anything back?
I agree with the previous poster; you seem to want full service at half price. If you can handle selling the house on your own then the flat fee MLS listing should be enough. If you can't, then accept that and pay for a full-service broker.
If I were the original list agent there's no way I would give you a penny back. Sorry.
Let me clarify we paid flat fee enhanced. We have him $700 which was in include escrow and closing. Since we are considering terminating our agreement with him I feel he should keep the fee list amount $200-250? and we should be refunded the remainder.
I can negotiate quite well I have been in sales a long time. We both work from home, currently, so being available for people to come by is no issue.
I really don't buy into listing agents doing much, sorry, it's a great deal for them. Sign up a bunch of people and collect your 3%. Buyers agents sell properties not listing agents.
Just to be clear we have always offered the full fee for the buyers agent.
And yes I don't expect full service at all, I tend to be more DIY. I just want a realtor that will return calls and ensure that they are giving the code to the lockbox to an actual realtor not much to ask.
What you are describing are BAD listing agents. A good listing agent can often make the difference between a house just sitting and languishing and actually getting sold. They do competent CMAs to advise you of pricing, they give you reasonable advice on preparing your home for sale, they market it fully, not just throw it on an MLS, they work their contacts and make sure it gets in front of as many eyes as possible. When the low-ball offers come in, the listing agent is the one who can defend the price or advise on reasonable counteroffers, and also suggest creative ways to make a deal work. After the contract, they deal with inspections, hold your hand when the amendment to address concerns is presented asking for a new HVAC and a new roof and defend your interests ferociously. A good agent reviews the HUD ahead of time to make sure that you aren't paying more than you should be, and that settlement charges and other fees aren't making their way to your side of the column, and they come to the closing to be there to deal with any "last minute misunderstandings" that can often pop up. They keep you on track, they make sure you conform to the terms of your contract, and they talk you down off the ceiling when you get too crazed. What, you think BUYER agents do all the work? Some people might just sniff that all they do is open lockboxes and let people wander around a house, then fill in a few blanks on a computer form for a "contract". It's equally valid -- and equally invalid.
I doubt you're going to be able to terminate your agreement, but hey, stranger things have happened -- what, you don't think they know they are providing a cut-rate service and that sellers always want more? In this case, you get what you pay for -- a disinterested agent who may or may not pick up a few hundred bucks if you manage to do all the work and sell a house for him. So you think the answer to to the problem is to hire yet ANOTHER cut-rate agent? Some people never learn . . .
say you negotiated a 1 % listing commission,,,, you feel great, you did good, you can see the money you have already saved from a much higher percentage..
so, then comes the listing, and selling, you have a decent property, the new listing gets blasted to 100's of agents, many have qualified buyers...
along with your property, 50 other properties are also blasted out to all the agents, (with qualified buyers looking for a property similar to yours)
the agents, buyers agents look at their new listings on the market and decide which ones to send their clients,,
and guess what?? if the split(buyers) commission is only.. 1/2 % on your property, and much higher on the rest of the listings,,, does this put your property in a favorable light- ??????
unless it is a very high listing price,,, and these small percentages are the norm in your area, you wont give your property a fair chance
why dont you fsbo your property, and pay no commissions??
and good luck with the low-ballers and tire-kickers, who just want to look.
i've had many friends who "just aint gonna pay commissions" and fsbo'd their property- and within 3 months, they are calling me for ,,,advice, / to list it/ - the common theme is the showings,,,,,when the property owner shows the property, the potential buyers are taking notes, ripping it apart.... and emotions run high,, even if they dont,,,,when the buyer throws in a low ball offer,,the owner gets pissed... and insulted,,,telling them to screw off..
you are much better off, going with an experienced agent in the area-also offer an attractive commission to the buyers agent-
Let me clarify we paid flat fee enhanced. We have him $700 which was in include escrow and closing. Since we are considering terminating our agreement with him I feel he should keep the fee list amount $200-250? and we should be refunded the remainder.
I can negotiate quite well I have been in sales a long time. We both work from home, currently, so being available for people to come by is no issue.
I really don't buy into listing agents doing much, sorry, it's a great deal for them. Sign up a bunch of people and collect your 3%. Buyers agents sell properties not listing agents.
Just to be clear we have always offered the full fee for the buyers agent.
And yes I don't expect full service at all, I tend to be more DIY. I just want a realtor that will return calls and ensure that they are giving the code to the lockbox to an actual realtor not much to ask.
Actually, yes, that is too much too ask. For a limited fee, you are getting limited service. That means the MLS listing will show you as the point of contact, not the Realtor. And, depending on your area, the buyer's agent will also know that listing agent is not representing you. The buyer's agent now knows that he/she will be responsible for dealing with you and their client (i.e. double the headaches). You're going to limit the number of potential buyers that will see your home.
What you are describing are BAD listing agents. A good listing agent can often make the difference between a house just sitting and languishing and actually getting sold. They do competent CMAs to advise you of pricing, they give you reasonable advice on preparing your home for sale, they market it fully, not just throw it on an MLS, they work their contacts and make sure it gets in front of as many eyes as possible. When the low-ball offers come in, the listing agent is the one who can defend the price or advise on reasonable counteroffers, and also suggest creative ways to make a deal work. After the contract, they deal with inspections, hold your hand when the amendment to address concerns is presented asking for a new HVAC and a new roof and defend your interests ferociously. A good agent reviews the HUD ahead of time to make sure that you aren't paying more than you should be, and that settlement charges and other fees aren't making their way to your side of the column, and they come to the closing to be there to deal with any "last minute misunderstandings" that can often pop up. They keep you on track, they make sure you conform to the terms of your contract, and they talk you down off the ceiling when you get too crazed. What, you think BUYER agents do all the work? Some people might just sniff that all they do is open lockboxes and let people wander around a house, then fill in a few blanks on a computer form for a "contract". It's equally valid -- and equally invalid.
I doubt you're going to be able to terminate your agreement, but hey, stranger things have happened -- what, you don't think they know they are providing a cut-rate service and that sellers always want more? In this case, you get what you pay for -- a disinterested agent who may or may not pick up a few hundred bucks if you manage to do all the work and sell a house for him. So you think the answer to to the problem is to hire yet ANOTHER cut-rate agent? Some people never learn . . .
YES. And a good listing agent makes sure the countless pages of correct, most protective contract form are used; makes sure the less aware agent understands the ins and outs of loans in your state, particularly when working with an online lender; is completely familiar with addendums and the need for them in your state; same with amendments; makes sure the contingencies are all met on a timely basis so deadlines don't just pass away; knows how long every process should take so that no one can say "well, you don't know how long it takes to get those documents. sally has to copy each page and bind them...yada yada yada"; knows which home inspectors say, "ooo ooo pick me pick me...I'm an engineer" and then has been found to not check attics, not check appliances and plumbing; which bug inspectors are known for finding bugs and a need for tenting nearly every house; which mortgage brokers likewise know all the ins and outs and new stuff and how to check on progress and willing to do so; and also knows the same about the buyer's realtor.
A good listing agent will question further when the buyers' agent says "all cash no contingencies on finance" and point to (hopefully, or at least write it in) where it says proof of funds needed. Because it can come out there are people who really believe their source being from selling their house qualifies as all cash, no contingencies. They mean, well when the house is sold and due diligence met and closed, then my purchase will be cash no contingencies. I know agents who believe this and have argued it.
Realtors are more likely to give their clients' feedback on your home to a Realtor but can feel very hesitant about saying anything negative (potentially constructive) about a seller's home directly to the seller.
So, you agreed to pay $700 up front and you gave the list agent $700. Now you want to cancel your agreement. Why in the world would the list agent agree to give you anything back?
I agree with the previous poster; you seem to want full service at half price. If you can handle selling the house on your own then the flat fee MLS listing should be enough. If you can't, then accept that and pay for a full-service broker.
If I were the original list agent there's no way I would give you a penny back. Sorry.
Did you read my previous post? 3/4 of money paid was for closing and escrow which we won't be using him for so why shouldn't I get a refund for that portion?
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