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.
There is definite distinction between traditional and 100% Offices.
Once You See The Differences… YOU MAKE THE CALL!
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).
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”).
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).
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!
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“Hey, Did You Ever Hear What Many Agents Consider
The 4 P’S OF MARKETING?”
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. 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.
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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:
- 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).
- 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 we 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.
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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.
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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.com.
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