If I were to sell my home tomorrow I think I know how to do so. Instead of going on the cheap on the commission with a discount broker trying to save some of the difference in housing prices from the peak, I would go the other direction and prey on human nature. I would offer a higher commission to the buyers agent.
Now there are some nay sayers that will say, “Tom, you are such a homer for the real estate agents, of course you will say raise the commissions.” And you would be completely off base.
When the real estate market was rocking I was calling for lower commissions. Selling a home was like shooting fish in a barrel and thus commissions should be lower. But the real estate world is not rocking, it is hurting. Hurting bad as they say in the south. There are real estate agents waiting tables like actors it is hurting so bad.
So sellers should prey on human nature. If a real estate agent is having a bad year but has a buyer, don’t you think their is the slightest chance they may look in the MLS and sort homes for sale by buyers commission? And if your home has an extra incentive in it for them that they may just happen to show your house even if it is not the perfect fit in a down market? I have never seen a home sell without a buyer, have you?
I am not glorifying the real estate agents with this post, but I am recognizing they are human. And if it takes a little motivation to get your home shown in a down market, then good for you. Here is an example of this from an article in the St. Petersburg Times.
With home sales less than half of what they were during the 2005 peak, you would think commissions would shrink. Underemployed agents are chasing a dwindling number of sales. But just because you can bargain hard on commissions doesn’t mean you always should. Think of it this way: A commission is prize money. All things being equal, a buyer’s agent will show a home paying a 6.5 percent commission to one paying 4 percent.That’s why I sweetened the pot by offering an extra 0.5 percent for the buyer’s agent. Compared with other homes for sale in my neighborhood, my commission was the highest. Less than two weeks after my agent and I signed the contract for 6.5 percent, we had a deal on my house. An acquaintance living nearby who offered 4 percent hasn’t sold his house in a year.via SF Gate
Now for a little math to help you decide this may be the right way to go. Let’s say you are selling a $250,000 dollar home. The commission at 6 percent is $15,000. If you added a 1% bonus to the buyers agent the commission would be $17,500, a difference of $2,500. But it would also put you at the top of the chart on buyers commission paid in your community and odds are you house would be shown a great deal more than others in your price range.
If you sold the home a month quicker you would be very close to breaking even at a 6.35 percent mortgage and typical utility and tax costs added in. And you would have a home sold in a down market which in itself is no mean feat.
So my advice to motivated sellers. Sweeten the buyers agent commission. Prey on the greed of the real estate agents. You are not being taken by the real estate cartel by offering a better commission. Instead you will be putting yourself ahead of the other homesellers and may have a better chance in selling your home in a down market.(from: http://www.therealestatebloggers.com/)
Now there are some nay sayers that will say, “Tom, you are such a homer for the real estate agents, of course you will say raise the commissions.” And you would be completely off base.
When the real estate market was rocking I was calling for lower commissions. Selling a home was like shooting fish in a barrel and thus commissions should be lower. But the real estate world is not rocking, it is hurting. Hurting bad as they say in the south. There are real estate agents waiting tables like actors it is hurting so bad.
So sellers should prey on human nature. If a real estate agent is having a bad year but has a buyer, don’t you think their is the slightest chance they may look in the MLS and sort homes for sale by buyers commission? And if your home has an extra incentive in it for them that they may just happen to show your house even if it is not the perfect fit in a down market? I have never seen a home sell without a buyer, have you?
I am not glorifying the real estate agents with this post, but I am recognizing they are human. And if it takes a little motivation to get your home shown in a down market, then good for you. Here is an example of this from an article in the St. Petersburg Times.
With home sales less than half of what they were during the 2005 peak, you would think commissions would shrink. Underemployed agents are chasing a dwindling number of sales. But just because you can bargain hard on commissions doesn’t mean you always should. Think of it this way: A commission is prize money. All things being equal, a buyer’s agent will show a home paying a 6.5 percent commission to one paying 4 percent.That’s why I sweetened the pot by offering an extra 0.5 percent for the buyer’s agent. Compared with other homes for sale in my neighborhood, my commission was the highest. Less than two weeks after my agent and I signed the contract for 6.5 percent, we had a deal on my house. An acquaintance living nearby who offered 4 percent hasn’t sold his house in a year.via SF Gate
Now for a little math to help you decide this may be the right way to go. Let’s say you are selling a $250,000 dollar home. The commission at 6 percent is $15,000. If you added a 1% bonus to the buyers agent the commission would be $17,500, a difference of $2,500. But it would also put you at the top of the chart on buyers commission paid in your community and odds are you house would be shown a great deal more than others in your price range.
If you sold the home a month quicker you would be very close to breaking even at a 6.35 percent mortgage and typical utility and tax costs added in. And you would have a home sold in a down market which in itself is no mean feat.
So my advice to motivated sellers. Sweeten the buyers agent commission. Prey on the greed of the real estate agents. You are not being taken by the real estate cartel by offering a better commission. Instead you will be putting yourself ahead of the other homesellers and may have a better chance in selling your home in a down market.(from: http://www.therealestatebloggers.com/)
Jose R. Cordova
Broker/Owner
CENTURY21 Casa Real Latino
973-546-8888
Take a few minutes to evaluate your real estate potential http://c21crl.agenttype.com/
Broker/Owner
CENTURY21 Casa Real Latino
973-546-8888
Take a few minutes to evaluate your real estate potential http://c21crl.agenttype.com/
No comments:
Post a Comment