The response was predictable; We only want the price on the phone, They Hang up and Move On. Now, when they call I give them 2.5% (We can negotiable; if you have another transaction tied to this.[purchase another home] Never more than 2.5%
There are TWO parties to the offer.
The Selling Agent who brings the client.
While 85 to 90% of Buyers may start the Home Buying process online, by the time they get to your door they have been educated, pre qualified, obtained a financial commitment from a lender and are under a Buyers Agency Agreement with someone [or possible committed to working with an agent but are not yet under contract with a Broker]
Will you be paying a Selling Broker's commission? Will you offer more or less that what is average in your marketplace. **It is clearly in conflict with our regulatory body (RECO) for me to interfere with another Broker's Contract. In Plain English, I cannot ask my fellow realtor to discount their commission. I do not know what they are charging their client and may already be offering inducements or incentives. Co operating Broker's Commissions are clearly posted on the Listing forms and repeated on the printed data sheets. These averages are information that is available to you when I present you with the Comparable Market Evaluation (CMA) as I have usually selected 3 or 4 properties that have recently sold and I will be reliant upon these details when defending your asking price.
I will defend your position to the best of my negotiating ability. I will not disclose your circumstances for selling, URGENCY, motivation or lowest Price. I will keep your secrets. When Agent's call, and they will, they directly ask What will you take? The best response is that "I know they will take the ASKING PRICE."
So let's examine what I do in a transaction, I price your home, present you with Print and Video Material, deal with survey, amendments, inspections, contracts and distribute to all involved in this transaction. [Buyers] need to know What might impact their future value by what is being built around them, [your home] anything that remains in or on the property IE. OIL TANK buried in the yard, or anything that could impact obtaining financing or insurance like Knob and Tube Wiring. I would urge Home Buyers to Obtain a Home Verified Report to confirm if any insurance claims have been made in the last 5 years.
In all I would suggest to you that easily 30 - 50 hours could be accumulated on your file; prior to the time we attend with at your real estate closing.
Let's examine the LISTING AGENT's of that Commission.
- Every Agent must pay their Broker. It's a cost of being in business. Licensing, Insurance, in addition to Memberships.
- There are the Marketings costs, Brochures, Video, Photography, Time and efforts for websites, online and Social Media Advertising.
- The balance is Income for Me. Less the tangible expenses of gasoline Insurance, vehicle lease, cell phones and equipment, cameras and computers and my Friends that Calculate and collect Income Taxes.
THEN How do you expect to achieve the highest value when selling your home IF you do not advertise or promote your property to attract the largest POOL of available shoppers?
Meeting an agent who is prepared to handle your sale from Listing, Pricing to Negotiation (and we hope Multiple offers) and sheppard your transaction, DRAMA free, to the closing table; Anticipate what the hurdles might be and bring in the health care, legal or financial talent to help you as required has value over the inexperienced agent or mere listing that merely offers the illusion of a lower price. Selling yourself is an option but unless it's a smokin' Hot Deal, Buyers are not going to find you.
What is my commission rate? Usually less than 2.5% Let's Negotiate...
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