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I tried a 1% agent on a nice house. 4 months later all I had had were a couple low-ball offers from people who wanted to buy inside an LLC with no assets and with me taking back a note. I cancelled the listing.
A few months after that, I listed with a full service broker (Berkshire Hathaway) with an offer at 10:00 am on the day it listed which we accepted.
I won't use a 1% agent again.
During that time - 4 mos. - was it on the market at the same price ? or did you lower the price and negotiate the 2nd time around?
It's all about: Price / Condition /Location (one had to be missing for it not to sell sooner)
Obviously the broker who brought you the offer at 10:00 a.m. on "listing day" already had the buyer, and could have negotiated w/you before that.
Also, you (and the agent) got lucky -- there is no way that agent didn't know about your house when it was FSBO if he/she were on the ball.
I tried a 1% agent on a nice house. 4 months later all I had had were a couple low-ball offers from people who wanted to buy inside an LLC with no assets and with me taking back a note. I cancelled the listing.
A few months after that, I listed with a full service broker (Berkshire Hathaway) with an offer at 10:00 am on the day it listed which we accepted.
I won't use a 1% agent again.
We had the same thing happen years ago! The service was awful, pictures and listing were awful. Canceled the listing and went with one of the big names. Received and accepted a great offer in a week. We paid 5%. Last year we sold another home and also paid 5%. Also sold in a week. I'd rather pay the 5 or 6% and have my home sold fast due to a good listing done by the agent than have to deal with showings for (or lack of) for months.
I think listing percentage is area specific, but I think the norm is typically 5-6%.
During that time - 4 mos. - was it on the market at the same price ? or did you lower the price and negotiate the 2nd time around?
During that 4 months, it wasn't on the market. The 4 months were November, December, January & February. We put it back on the market the beginning of March.
Quote:
Originally Posted by QuilterChick
It's all about: Price / Condition /Location (one had to be missing for it not to sell sooner)
There may be something else. The 1% broker I mention is the kind with big billboards advertising 1% listing (3% to the buyer's agent). It is possible, although I have no evidence, that full service brokers/agents had "blacklisted" him.
Quote:
Originally Posted by QuilterChick
Obviously the broker who brought you the offer at 10:00 a.m. on "listing day" already had the buyer, and could have negotiated w/you before that.
Most likely. One odd thing: the full service agent from Berkshire Hathaway had already paid to have extensive photographs taken & put into one of the local magazines that advertise homes.
I'd rather pay the 5 or 6% and have my home sold fast due to a good listing done by the agent than have to deal with showings for (or lack of) for months.
Me too. I learned my lesson.
There's an old saying about oats to be fed to a horse:
"If you want quality oats for your horse, expect to pay a fair price. If, however, you're willing to settle for oats that have already been processed by a horse, you can get a discount."
... It is possible, although I have no evidence, that full service brokers/agents had "blacklisted" him....
I've heard this before and I often wonder about it. I'd like the know how that conversation goes. Hell, I wrote an offer on an REO that was paying 1.75% and charging some sort of junk fee. Never even told the buyer what the co-broke was. I'd have eaten the loss on it for this buyer. He was a good dude. It was a great deal, I was hoping he'd get it but we got outbid.
Buyer: "Buyer agent, I'd like to see 123 Main St. The price looks great."
Broker: "I'd love to but unfortunately it's listed by Limited Service Realty and we're currently blacklisting them. I've got another at 123 Overpriced St that is perfect for you though."
Buyer: "Oh good, thank you for letting me know. Let's skip 123 Main and go look 123 Overpriced St."
During that 4 months, it wasn't on the market. The 4 months were November, December, January & February. We put it back on the market the beginning of March.
There may be something else. The 1% broker I mention is the kind with big billboards advertising 1% listing (3% to the buyer's agent). It is possible, although I have no evidence, that full service brokers/agents had "blacklisted" him.
Most likely. One odd thing: the full service agent from Berkshire Hathaway had already paid to have extensive photographs taken & put into one of the local magazines that advertise homes.
SportyandMisty:
You said it was on the market at 1% for 4 months, see above in green. You put it back on the market a few months later with the full service broker at which point broker #2 brought an offer with a client he had in his pocket that was waiting for that particular house.
(QUOTE)- Originally Posted by SportyandMisty I tried a 1% agent on a nice house. 4 months later all I had had were a couple low-ball offers from people who wanted to buy inside an LLC with no assets and with me taking back a note. I cancelled the listing.
A few months after that, I listed with a full service broker (Berkshire Hathaway) with an offer at 10:00 am on the day it listed which we accepted.
I won't use a 1% agent again. (QUOTE) , Which all this tells me is that you had it on the market for 4 months at your price, and with you showing it and letting anyone in that rang the door bell. Your fault 100% for trying to cut out the full service Realtors and not knowing what you were doing, if you did you wouldn't have shown it to every Jack & Harry. Bringing a qualified real buyer: THAT is what you pay a real agent for. Lesson learned. You evidently paid the allegedly clever or lucky agent a FULL 5 or 6% to bring one real buyer -- AND you lost 6 mos. in the process.
Last edited by QuilterChick; 10-16-2017 at 05:05 PM..
Your fault 100% for trying to cut out the full service Realtors and not knowing what you were doing, if you did you wouldn't have shown it to every Jack & Harry.
Yep. I tried to be cheap. I didn't get a good result, and as I said in a different post, I won't use a 1% agent again. I learned my lesson.
Just to be clear, though, anyone who wanted to see the house would first call my 1% agent who would then call me & let me know when a prospective buyer would come by to see it. There was a realtor lockbox with a key inside.
Quote:
Originally Posted by QuilterChick
You evidently paid the allegedly clever or lucky agent a FULL 5 or 6% to bring one real buyer -- AND you lost 6 mos. in the process.
Yep. I agree. That's exactly what happened. I learned my lesson.
I've heard this before and I often wonder about it. I'd like the know how that conversation goes. Hell, I wrote an offer on an REO that was paying 1.75% and charging some sort of junk fee. Never even told the buyer what the co-broke was. I'd have eaten the loss on it for this buyer. He was a good dude. It was a great deal, I was hoping he'd get it but we got outbid.
Buyer: "Buyer agent, I'd like to see 123 Main St. The price looks great."
Broker: "I'd love to but unfortunately it's listed by Limited Service Realty and we're currently blacklisting them. I've got another at 123 Overpriced St that is perfect for you though."
Buyer: "Oh good, thank you for letting me know. Let's skip 123 Main and go look 123 Overpriced St."
These kinds of agents should be fired, since they are doing the buyer a huge disservice.
The buyer loses when there is inter-agent retaliation.
Normally you hear about agents blackballing listings with 1% buyer-side commission, but this discount broker was offering 3% to the buyer side.
I don't see any good reason to boycott this guy's listings, if that's the case.
I tried a 1% agent on a nice house. 4 months later all I had had were a couple low-ball offers from people who wanted to buy inside an LLC with no assets and with me taking back a note. I cancelled the listing.
A few months after that, I listed with a full service broker (Berkshire Hathaway) with an offer at 10:00 am on the day it listed which we accepted.
I won't use a 1% agent again.
it's probably very rare to find a 1% agent that does quality work.
I'm guessing this is what a 1% agent typically offers:
limited number of crappy photos.
5% response rate to inquiries. (He rarely answers the phone, and never returns calls from other agents) No wonder you're not getting any good offers. Those buyers have moved on to the next house. You'd be shocked if you found out how many missed unreturned calls he had.
lets you handle the buyers directly.
When you're paying peanuts, do you expect more than this?
Selling homes doesn't require a Ph.D. It's just time consuming sometimes, and a lot of agents don't maintain high standards.
There are enough lazy 3% agents already. Going with a 1% is asking for trouble.
I've never avoided a listing because of what their agent was paying, though I've certainly told my clients about some of the factual pitfalls that I have typically encountered with them. And I've never heard of an agent representing the Buyer who cares about what the listing agent was paid either.
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Lesson learned. You evidently paid the allegedly clever or lucky agent a FULL 5 or 6% to bring one real buyer -- AND you lost 6 mos. in the process.
