markp,
The answer to your question all depends on the state of the housing
market in your area.
When we needed to sell our townhouse due to a geographical move, the
housing market where we were located was in the midst of a crisis.
Properties were selling before ads listing them were even published.
Prospective buyers were getting into bidding wars over properties.
I was perfectly willing and able to sell our home myself, but a couple
of things concerned me: burglars who use tours of FSBO (For Sale By
Owner) properties as a way to evaluate a home for burglary, and the
fact that FSBO's are frequently inundated with phone calls by Realtors
trying to persuade the owner to let them sell the property for them.
So, we set up a lunch with the wonderful Realtor who had helped us buy
the townhouse 3 years before. I came right out with the honest
statement: "We know, that you know, that we can sell our townhouse
ourselves, given the current state of the market here. However, we
also know that there are certain things you can do for us that will
save us a GREAT deal of time and grief. Because we have thousands and
thousands of dollars in student loans to pay off as well as the costs
of our upcoming relocation, we need to make as much money as possible
from the sale of our home. What can you suggest for a
mutually-beneficial arrangement?" She responded without missing a
beat: "I would be willing to do it on a 4% commission."
What this meant was that the home would be posted on the MLS (Multiple
Listing Service) with the notation "2% for seller's agent, 2% for
buyer's agent". Now, a buyer's agent will show a home with this kind
of commission scale to their client as a last resort, or not at all,
when they have properties offering 6% (3%/3%) that they can show the
buyer.
In addition, we were not going to get the deluxe sales promotion from
our agent that she would have given to a 6% listing. She was not going
to hold an open house for us, or provide all the extra promotion that
an open house would entail.
That was the risk we were taking. However, because the state of the
market was so dire, we figured we would be okay, and we were. Our
townhouse sold in 2 days, with two buyers trying to outbid each other.
Our agent had to stop the bidding process because she feared our home
would not appraise high enough if the price went any higher.
So, if the housing market in your area is currently a seller's market
(more people wanting to buy than wanting to sell, and prices going
up), you have a good chance of persuading a Realtor to take you on at
a reduced commission. Just be aware that buyers' agents will show your
home last -- or not at all -- and that your agent will probably not
put the full time and effort into selling your home that they normally
do for clients. Even if it is not a seller's market, you may still be
able to find a Realtor willing to do a reduced-commission sale for
you.
If those consequences are acceptable to you, you should try contacting
several Realtors, one by one, until you find one willing to take on
the sale of your home.
Before Rating my Answer, if you have additional questions or need
additional information, please post a Request for Clarification, and I
will be glad help you get the information you need.
I hope this information is exactly what you needed to make your
decision!
Regards,
aceresearcher |
Request for Answer Clarification by
markp-ga
on
05 Nov 2002 10:20 PST
I just called my realtor , a friend, who i am signing with today, and
got the answer from him. thanks. good answer. - I wasnt aware ofthe
trade offs that could be made, no open houses, less advertising, etc.
it makes sense though.
and its true, that realtors wont want to show your house first, if
there is less commission than normal. thank you.
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