I Need The Straight Scoop On Selling!
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ONLINE INFORMATION WARNING:
The Internet is a fabulous tool for gathering information. But what the Internet can NEVER do is interpret it.
Please use online property search tools with care: relying on property data alone, without the context that a professional can provide, will usually lead to incorrect and expensive mistakes. And, making decisions regarding the purchase or sale of your largest asset with online information alone can often lead to disastrous results. |
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Well, since the overwhelming majority of sellers use the services of a professional... let's first take a look at how real estate companies work behind the scenes.
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There is definite distinction between TRADITIONAL and 100% Offices.
Once You See The Differences... YOU MAKE THE CALL!
IN A TRADITIONAL OFFICE:
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IN A 100% OFFICE (Such as
Keller Williams, RE/MAX,
or Realty Executives):
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The company pays for signs, advertising, lock boxes and
other expenses of listing your home. In return, the individual
agent gives up to half of their earnings to the company
when commissions are paid. |
The agents share in paying all offices costs. They also
cover their own advertising expenses. However, once
shared office expenses are paid, the agents keep 100%
of their commissions. |
The company pays for signs, advertising, lock boxes and
other expenses of listing your home. In return, the
individual agent gives up to half of their earnings to the
company when commissions are paid. |
Agents from 100% firms are responsible for generating
their own business. These agents tend to be the most
productive in the industry since they must "pay their
own way". Or, put another way, if a 100% agent doesn't
have a strong business, they won't be in business very
long! |
Ads are run on a rotation. Because the office pays for the
marketing expense of the listing, they, not the agent,
determine how the money is spent. The agent has less
authority to determine the timetable and the amount. |
Since the agent pays for the expenses of the listing, the
agent and seller as a team determine what marketing is
done and when, based on the seller’s needs and market
conditions. |
The traditional office works best for inexperienced,
part-time, or unproductive agents. |
The 100% office works best for experienced, full-time,
top producers who are pro-active rather than re-active
in style. |
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So, how does this affect you, the Seller??? Well, let’s take a look…
SCENARIO #1: YOU LIST YOUR HOME WITH A TRADITIONAL FIRM
The agent from the traditional firm is not as concerned with pricing it right, from the beginning. Why should they be? Their company is paying for the advertising and if it’s overpriced, they can always talk you down later (after your home has been sitting for a while).
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Now, let’s just say that a
prospective buyer sees your
house advertised in the paper...
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Or drives by the sign in your yard
and calls the number on the sign
to ask some questions...
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Who’s going to answer those questions?
Well, in a traditional firm, most likely, the
least experienced or least productive agents
in the office. (They’re the ones with the time
to sit around at the "up desk" waiting
for
phone calls, remember?)
Have they even seen your house?
Maybe or maybe not.
How enthusiastic can they be?
How knowledgeable? What do you think?
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ANOTHER THOUGHT: Besides classified ads and yard signs what else would a traditional firm likely do to market your home?
Do you think they’ll be daring and try new stuff? Or stick with the same old same-old? ("We’ve always done it this way").
And what about the agent from a traditional firm?
Do you think they’re likely to spend much money
out-of-pocket to aggressively market your home
when they’re handing up to half of their commission
to the house?
Are agents from traditional firms likely be on top of
Real Estate technology? What do you think?
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SCENARIO #2: YOU LIST YOUR HOME WITH A NON-TRADITIONAL OFFICE
An agent from a 100% firm is likely going to price your home correctly from the beginning. WHY?
Simple-Their wallet is on the table! Since they pay for all marketing costs, it’s in their best
interest
to get your home sold for the most money in the least amount of time.
(Coincidentally, that’s the same thing most sellers want).
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NOW, let’s just say that a prospective
buyer sees your
house advertised
in the paper...
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Or drives by the sign in your yard
and calls the
number on the sign
to ask some questions...
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If your home is listed by our team, their call will go directly to us.
The buyer's questions are important and deserve to be answered by the people that
know your home best - the listing team, not just some agent on the "up desk" at a big company.
Since we pay for all marketing expenses do you think we’re going to stick
with the same old same-old (even if it doesn’t work?)
Since our wallet is on the table, don’t you think we're likely to use the most
pro-active and
effective methods for marketing your home?
Since we truly run our own business, don't you think that
we're much more likely to be current
on Real Estate Technology?
So, now that we know how companies work, how do you choose an agent?
If you hear nothing else, please hear this!!!
The ONLY criteria for choosing a listing agent is:
WHO CAN BRING YOUR HOME TO THE ATTENTION OF THE GREATEST NUMBER OF QUALIFIED BUYERS!
There is nothing else! The conventional wisdom that says that you need to hire the "home town agent" is just plain hokum! Here's why:
In the olden days, people would grow up, marry, and settle in the same town. But today, with the mobile society we live in, this is just not true. The buyer for your home is not likely to come from your town. Your buyer might be in Springfield, Los Angeles, or even Japan!
So, you need to choose an agent who has the technology tools to bring your home to their attention, wherever they may be.
Hint, hint...these tools involve more than placing your home in the Multiple Listing Service and waiting!
"Hey, Did You Ever Hear What Many Agents Consider
The 4 P’S OF MARKETING?"
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1. Put a sign in the yard
2. Put an ad in the paper
3. Put it in the MLS
4. Pray that it will sell |
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If this is the extent of what an agent is offering you, do yourself a favor and RUN the other way!
We believe that to effectively market a home TODAY, means combining traditional methods with the best in technology tools
and giving you CHOICES that fit your needs (more in Real Estate Consulting).
And lastly, how NOT to Choose an Agent
PLEASE Don’t Select Based On The Highest Bidder!
The MARKET determines the price your home will sell for - not the agent or the company (Check out the Straight Scoop On Pricing). The agent's marketing package can influence, but NEVER control when your home sells and for how much. An agent’s job is to advise you based on what the market is showing. Beware of agents who try to "buy" your listing by telling you whatever you want to hear. They will inevitably have to talk you down to market price later. This practice is dishonest and a waste of your time.
READY FOR A RADICAL IDEA?
If you want a truly accurate and objective way to determine the best listing agent or team,
you'd be well advised to have several agents in, but have them ONLY present and discuss with you how they'd market your home.
Choose your agent, and THEN have them prepare a CMA (Competitive Market Analysis).
There are two reasons for suggesting this:
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Many agents will quote a price range higher than the market is indicating if they're competing for a job; it's called "buying a listing". An agent who already knows that they have the job will be much more inclined to provide an honest appraisal of the market (and back it up with data and estimates from colleagues).
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Even more important: though most agents will not tell you this, you'd be well advised to not talk about pricing at all except with the agent who you've hired to represent your interest! A crazy statement?
Well, think about this: prior to the practice of buyer agency, a seller could have several agents in, talk about pricing and their motivations (it's almost impossible to talk about one without the other), hire one agent and know that the others would not use the information they discussed with you against them.
This is no longer true! One of the agents that doesn't get hired, could very well end up representing a buyer they bring to your home and they have every right to share the information they gleaned from
you with their buyer.
Or, if you're concerned about getting objective pricing from an agent, another option is to pay the agent a reasonable fee to prepare and present a CMA. By doing so, you'll get a far more accurate read of the current market since the agent is getting paid for their services and knowledge, not competing for a job. We, along with other forward-looking agents, provide this service a-la-carte. And while I can't speak for others, with our team, if you then decide to hire us to market your home, we'll refund the fee you paid us at closing since it's included in our services. |
And Don’t Select Based On Commission!
Many agents won’t tell you that a commission is negotiable. But that doesn't mean that cheaper is better. In fact, in real estate, shopping for the lowest commission may help you pick up pennies but you'll invariably drop dollars. We know from working with hundreds of sellers over the years that DISCOUNTING IS NO BARGAIN.
And since we offer you choices such as various Fee-Packages, A-La-Carte Services, Hourly Consulting, as well as Traditional Commissions, you're not stuck with a one size DOESN’T fit all system if you want quality service! To learn more about getting objective counsel, devoid of selling anything, without getting discounted, check out Real Estate Consulting.
What About Selling on Your Own?
Unlike most agents, we're not going to tell you that if you want to sell your home that you should either be roped into a traditional commission or have to forgo any professional help. We believe that this "all-or-nothing" stance by the real estate industry has led to many consumers going it totally alone and losing their shirt in the process, or worse, falling prey to the "I'll throw you into the MLS for $500" scam and not only losing $500 but more importantly, your precious market time.
On the other hand, we would be less than honest if we didn't tell you that the statistics on going it totally alone aren't pretty - the overwhelming majority of For Sale By Owners are not successful and list with a real estate agent.
But there is a statistic that should give you pause before you jump into selling totally on your own. That is this:
Nationally, Realtor® assisted properties net 23% more than For Sale By Owners.*
What this statistic shows is that many homeowners are running around trying to save 5 or 6%, do all the work, yet they lose 23% in what they walk away with.
In other words, in real estate, as in other fields requiring knowledge and expertise...
It's not what you save, it's what you keep!
So why do Realtor® assisted properties net so much more? Well, it's not because an agent, rather than you, is doing functionary tasks such as putting a sign in the yard, advertising, or doing up pretty feature sheets - heck you can do that if you have the time.
No, the value of professional real estate assistance is in the fiduciary counsel and market knowledge: pricing for top dollar, solid, objective negotiating, and most importantly, the skilled troubleshooting of the transaction so it doesn't fall apart.
We believe in giving the consumer choices!
No two sellers are exactly alike - their needs, time and budget vary. That's why we offer responsible alternatives that address your needs. And whether you choose a flat-fee package, hourly consulting, or a traditional commission, we believe you should get the kind of quality that will make you money, not cost you!
For more information on our consulting model that gives you choices that work, check out MyREConsultants.
*NAR's Homebuyer & Seller Survey 2006
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CONSUMER DEMAND FUELS
REAL ESTATE CONSULTING
Ripping The Roof
Off
Real Estate
How a Multi-Billion Dollar Industry
Came To Have an Identity Crisis
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By: Mollie W. Wasserman |
No matter how it's presented or deressed up, there is an inherent conflict of interest when a real estate agent is expected to act as a fiduciary agent providing objective, unbiased counsel MORE...
Available in all major book stores.
Or order online at Amazon or Barnes & Noble.
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IT'S TIME FOR YOU TO
TAKE CONTROL!
How to Make Your Realtor®
Get You the Best Deal
By: Mollie Wasserman &
Ken Deshaies
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A guide through the real estate
purchasing process,
from choosing a Realtor®
to negotiating the best deal
for you! MORE...
Available in all major book stores.
Order online at Amazon or Barnes & Noble.
OR receive a complimentary copy
when you
schedule a
Buyer Consultation
with a member
of our team.
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© Copyright 1996-2008 Mollie W. Wasserman All rights reserved.
No reproduction, distribution, or transmission of the information, graphics, or design included in this site is permitted
without the written consent of
Mollie W. Wasserman.
The Real Estate Internet Warning is the one exception to the above rule as we encourage agents to use it but ONLY WITH THE FOLLOWING CREDIT:
"Courtesy of Mollie W. Wasserman, http://www.TheHomeConsultants.com
Any questions or comments about this site should be directed to: Mollie W. Wasserman, Email or (508) 613-9101 |
