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(English) An Idea to Get Your Home Sold Faster

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32 comentarios
  1. Angie @AgentKnowHow
    Angie @AgentKnowHow Dice:

    Disagree! What’s the point of raising the Buyer’s Broker commission if the house is in the wrong price range to begin with? Contray to popular belief, we don’t control what the buyers see on-line. Often, they come to us with a list of houses they have already found online. Paying points, willingness to offer more or a seller’s concession, staging, the right price point, smart, experience agents. . .that’s what sells a house in a Buyer’s Market!

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  2. Mahesh Mike Patel
    Mahesh Mike Patel Dice:

    Not neccessarily True….there are are many reasons, here is one.
    Listing agent lists the house, does all the work and advertising and buyer comes along, who eventually goes to his mom, dad cousin etc, who happens to be an agent, and writes up an offer with them: why pay the buyer’s agent more….PS: this agent is also part time and does not what is going on? and make our work harder.
    If this agent really want to find a home for his buyer, he should get the same commission as the listing agent, who works just as hard to get the right price and to get the escrow close, after all, it is the price that sells the house.

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  3. Steve Bland
    Steve Bland Dice:

    An even better option is a BTSA (bonus to selling agent). An increase in commission gets split between the agent and his broker (company), but the BTSA goes straight to the agent. After a group of homes meets my first rough criteria for a client, I then whittle it down to a manageable number of properties. If one has a BTSA, I make sure to give the client the opportunity to reject it themselves–I don’t take it out of the list as long as it meets what my client has told me to look for. As far as the ethics goes, I make sure they know that the home carries a bonus for me, but that my ethical obligation is to protect their best interests, and my advice to them will not be swayed by the commission I will earn–and it won’t be!

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  4. Brett Matsuura
    Brett Matsuura Dice:

    I agree somewhat with your theory…13+ years ago I would agree with it 100%. It used to be that the Agent was the primary source for listings. However, in today’s market most Buyers go to the internet first to search for homes. In fact, many Agents and/or Brokers have IDX websites that show all of the active listings for sale in an area…not to mention realtor.com, Zillow and Trulia. My point is that on many occasions the Buyers searching the internet and are going to their Agent to inform them of the new listing on the market, driving by and wanting to see and not knowing or even caring about the compensation being offered…and I doubt that if a Buyer goes to their Agent wanting to see a property that they are going to say no.

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  5. SarahGray Lamm
    SarahGray Lamm Dice:

    I STRONGLY disagree! I can cite more than one example where I was the second agent in on a listing carrying a higher commission to the Buyers Agent and it did NOT sell. If there is “extra” money to throw around I will advise the seller on how EXACTLY to spend it to get the home in tip top, market ready condition, then PRICE IT RIGHT so that the buyers who see it will be COMPELLED to make an offer because s/he REALLY wants the house. Just getting an agent to include the home in a tour because they might get something extra can not possibly make up for price, terms and condition.
    A full commission (meaning nothing “extra”) fairly allows me to do a bang up marketing job, use my hard earned experience and set of negotiating skills to get the job done and still offer a fair split with a buyers agent.
    I’m sure you will find this hard to believe but I do NOT calculate my commission on any transaction, including when I represent the buyer, until it appears on a closing statement. There is simply no way I would allow the promise of extra cash to sway my buyer in any way…as if that would even be possible.

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  6. David Mott
    David Mott Dice:

    When you are on the receiving end of the sales commission, this makes terrific sense. When you have to ‘pony up’, it makes horrible sense. There is no more value added to the transaction, whether the sales commission is 1% or 10%.

    Folks that are buying a home don’t care about the sales commission. They only care about the price of the property, which usually includes the sales commission.

    If the seller has to adjust the price of the property to offset a higher sales commission, the number of available buyers starts to diminish.

    6% sales commission on a 100K home is $6,000. 6% sales commission on a 300K home is $18,000. Is the seller getting more bang for the buck by paying 3 times more to sell their property? If so, then something is wrong with the process.

    Just my opinion… ;)

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  7. Jim Slack
    Jim Slack Dice:

    Terrible idea. #1, like some have already posted, who cares what the commission is, if the buyers don’t like it, what’s the point. #2, in our MLS, there is not way to search for “higher commissions” that are paid. So, you just have to pretty much be lucky and come across it. #3, say you do find a listing that pays more, so you “push” this on your buyers, how is that doing them any good? Simply a bad idea. I’d much rather the sellers lower their listing price, or accepting price then to give money away to another Realtor.

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  8. Janine Gregor
    Janine Gregor Dice:

    As a virtual assistant who works with agents, I can vouch that this is indeed a smart idea to sell a home faster. A better commission does help a home stand out from all others particularly in a subdivision where the homes tend to be similar. Of course, the only catch IMO is for the seller who doesn’t have much leeway with the commission to begin with. In other words the standard commission can be difficult to reap from the sale of the home given the housing economy. But if the opportunity to pay a higher commission is affordable to the seller, it does work! Great post! Thank you!

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  9. Carol Cappelletti
    Carol Cappelletti Dice:

    Disagree! Like SaraGray I too never calculate my commission till I see the HUD. And in our market we do know the commission paid to both Buyer and Seller Agent as published in our MLS. Goal of Buyer Agent is to find the best possible home for our clients and in doing so we will continue to work in and profit in our business. If we ran around showing only those homes with higher commissions splits and or bonus’s we might consider selling something else!!

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  10. Dean Hartman
    Dean Hartman Dice:

    I love the debate, but OF COURSE the house has to be priced to sell. My point is if three houses are “priced correctly or compelling”, don’t you think the agents will show the one with the higher commission more often, thereby creating a better chance of selling? (and at a max price).

    I am disheartened by the premise that PRICE is the only component. Why pay an agent any commission to find a home, if all that matters is price???

    I believe many of the commenters here have forgotten how truly valuable their service is…research, education, negotiating, and so on are crucial. Price is not the only factor.

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  11. Tim Devinney
    Tim Devinney Dice:

    Mr. Hartman, I appreciate your insight but I doth protest. We do not consider commission when showing a home. In fact, I rarely even know what the commission is when I am showing the home. We routinely get email flyers offering bonuses and higher commissions for certain homes but if the property doesnt fit my clients criteria and isnt the right home I dont care what you are paying me. The best way to sell your home is to put it in the best market position relative to location, condition, and price. If your home backs up to the nuclear waste site paying 20% to a buyers agent will not sell it. Pricing it to reflect the free glow in the dark installation service will. Thanks for sharing.

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  12. SarahGray Lamm
    SarahGray Lamm Dice:

    To answer your question Dean, NO I do not think an agent worth working with will show the higher commissioned home more often. If the goal is to get the home to closing a good agent on both sides is invaluable to both parties. As a buyers agent I have already disclosed and negotiated with my buyer what it will cost to have me represent them, how I will get paid and if I have a minimum below which they will compensate me should the seller not offer enough to cover my fee. I do NOT need a lagniappe to get me to do what I have CONTRACTED to do for my buyer already. And I don’t want dinner at a five star restaurant, a porsche or anything else to try to get me to do what I have already promised to do.
    When I am the listing agent I can absolutely find improvements which can be made to the property with that “extra” cash which will accrue to the buyer, not their agent.

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  13. Dean Hartman
    Dean Hartman Dice:

    SarahGray, while I applaud your conviction, it is not my experience over the years with most people (in real estate and outside real estate). Most people want and chase what is in their personal best interest.

    Further, I am not promoting the idea of compromising ethics. The premise is same house, same neighborhood, same price……higher commission….which house gets shown more?

    Additionally, in my market here on Long Island, Buyer’s Agency is the exception, not the rule. That does affect my belief.

    The beauty of opinions is that they are like belly buttons—everyone has one.

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  14. SarahGray Lamm
    SarahGray Lamm Dice:

    Dean, I had no idea since you did not make it clear from the beginning, that you are in an area where buyer representation is NOT common. As KCM members we need to remember that real estate IS LOCAL. In our area, what you are suggesting would not be protecting our clients interest. We typically represent buyers here and we do protect their interests which is more than a naive conviction!

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  15. Dave Woodson - Northwest Indiana Marketing
    Dave Woodson - Northwest Indiana Marketing Dice:

    I am a licensed agent (in referral), and years ago when I was selling my 3 unit rental property. I put up a $1000 dollar bounty to the agent that sold it. I had one guy that should have set up a turn style at the front door. It was great, he wanted that money. I am sure that he had some deal that he got it all from his broker because that was all he did was take people through my house.

    So, yes it does work and I would urge anyone to do it .

    Dave – you want referrals, you want leads. Well, I am a lead generating machine.

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  16. Toby Boyce
    Toby Boyce Dice:

    Dean,

    In theory, your idea makes perfect sense and the strong compelling argument of SarahGray would be the response from the entire real estate industry.

    But we know that theory isn’t the place where houses are sold.

    1. Buyer’s Agent Commission: I applaud any agent that honestly “never” looks at the split when showing homes. I am showing six houses on Saturday to a couple and one of them is offering -.5% less than our area average. If they love the house, does it matter? No. However, my experience has been when you GO BELOW the area average is when agent’s begin to eliminate your home from searches. I remember listing a house at -.5% below area average and an older agent called and asked me about the listing her final questions “so why is this only going to pay me x%?” I told her I was splitting it 50/50. Her response “I deserve the local average, good luck with that.” She never showed it.

    2. Agents Show Homes With Bonuses More. This is a hard item to calculate. Two big issues is that usually when the bonsues are offered it is two situations: over priced house where owner is trying to find some way to save face or a bank-owned home. Obviously in the first case no one cares. In the second case — it is hard to tell whether the number of houses being sold were because of price or the HUD bonus. BUT it would be remiss to not consider that Fannie/Freddie had selling agent bonuses, pulled them off the table, and now it is back. So obviously someone at Fannie/Freddie thinks it helped move homes.

    Just my thoughts.

    Responder
  17. Johnny
    Johnny Dice:

    The main item to remember is we owe Fidiciary Duty to our clients NOT to the amount of comissions or the trips or the cars being given away or the electronic gizmos offered by the developers to BRING SOMEONE to their developments.

    Perhaps a motivating action to a Buyers Agent would be a reverse-declining bonus ove a 30 – 45 day period. An example would be $1500 bonus that on the 46th day the bonus dissolves. The rate of decline would be $33.33 per day.
    It seems to me this would “encourage” more traffic through the property.

    We just have to be sure “the property” meets the Buyer’s criteria which in turn
    should satisfy ones’ Fidiciary Duty to our client.

    I feel, especially in these declining markets we have to be sure “our clients” interest are above our financial interests in order to maintain our Fidiciary Duties .

    Responder
  18. Aaron Johnson
    Aaron Johnson Dice:

    My market is very different than the national average; we’re very healthy. That being said, I don’t know that it makes a difference. I have a very good IDX search on my site that I sign buyers up to after we’ve discussed exactly what they are looking for. While I search through the MLS for them, almost always what happens is they find homes to look for, and we go out and view them. They don’t care spit about the commission- after all, they don’t get it. On my listings, I make sure they are the prettiest on the block BEFORE it hits the MLS and we price it to sell using Relar rather than a CMA. If the house looks better than the competition, is priced better (Compellingly priced!) and I make sure the prospects have all the information they need at the home, it sells. If it’s in the lower-price point, we may up-front market closing costs are covered with a full-price offer, and THAT catches a buyer’s eye.

    The days of buyer’s agents controlling what homes the client sees are rapidly disappearing due to IDX searches. You want to sell the home, concentrate on marketing to the buyer, not the agent.

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  19. Randy Wilson
    Randy Wilson Dice:

    I recommend to all of my sellers that they continue to offer the buyer’s agent at least the 3% that has become a standard in this market. If they want to offer more, they are likely to get increased traffic and if they choose to offer less, they are guaranteed to get less traffic (maybe none). As the listing agent, I take a flat $795 for the listing side of the equation. That makes it easier for my sellers to offer more to the buyer’s agent as they aren’t having to pay me more. Just look at a $300,000 house … if I only charge them $795 listing fee, they save $8205 over the traditional agent that will charge them 3% on the listing side. They can pocket the difference or possibly throw some of that to the buyer’s side to help move their house faster. And what do they get from me for the $795 … all of the same services I offered when I was asking for 3% as an listing agent for a large national firm. The only thing discount about me is the fee I charge to list the house.

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Trackbacks y pingbacks

  1. […] Idea to Get Your Home Sold Faster October 23, 2011 By kabell This is an interesting blog by Dean Hartman at the KCMBlog.com. For those of you working with a Denver real estate agent, it’s worth a response.  So post your […]

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