Home Selling in 68135>Question Details

Peg, Home Seller in Omaha, NE

House has been on/off mkt for 9 months - lower price and use flat fee mls or add granit and pay 7% commi

Asked by Peg, Omaha, NE Tue Sep 2, 2008

A relator who sells a lot of property in this metropolitan area is suggesting that adding granite to the entire house and raising the price to cover it and the commission is the way to go. This relies on heavy web and other marketing. Homes in this neighborhood do not have granite - even without granite, its one of the most expenseive homes.
I need the mls exposure but am considering paying 3% to buyers agent and going with a flat fee listing. Opinions?

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Lower the price and use a full service agency if you are serious about selling. You can't sell your house for more because you have to pay a fee and you put in granite. Forget the granite and price it right.
0 votes Thank Flag Link Tue Sep 2, 2008
Hi Peg,

We are currently shopping for a home in Lincoln. I would not recommend doing the granite right now. Unless your house is already in the price range were people are going to expect granite. And then you would have to install it and I would not lower the price cause it is expected at that price anyway.

The way it sounds, your house being the most expensive already in the area. I would not look at raising the price with granite. We just looked at a home and the owner worked for granite countertop company so he installed granite everywhere, kitchen and all bathrooms. This is was a house listed for $150,000, as I told our agent, this is not the price range of home to have granite. Nice feature, but people aren't going to pay extra for it in that type of home.

Right now, price is king. People are looking for a bargin cause if you look around enough you are going to find one in this market.
1 vote Thank Flag Link Sat Sep 20, 2008
Thank you for the answers -very much appreciated!
1 vote Thank Flag Link Fri Sep 5, 2008
You get what you pay for. If you can handle and know how to market, negotiate and sell flat fee may be for you, if not, hire a professional.
0 votes Thank Flag Link Thu Nov 7, 2013
@Peg, with the power of the Internet enabled MLS (i.e. everything that is entered into the MLS is syndicated across the Internet to thousands of different real estate websites), there's real value for you as a seller in leveraging the reach of the MLS without having to pay a Realtor a full commission via a flat fee MLS listing or an entry only MLS listing. With this approach, you need to be prepared to take on many of the duties that a listing broker would assume, but I think you'd be hard pressed to find someone who is more passionate and vested into the successful sale of your own home. We put together a "How to FSBO" guide, it's noted in the web reference below, while it's written and intended for a Massachusetts FSBO, there are a lot of nuggets that you can take away from it for the Nebraska market as well. Hope that helps!
0 votes Thank Flag Link Thu Nov 7, 2013
Hi Peg!
I do not recommend "flat fee" listings, as you will be doing all the marketing, showings, negotiations, contracts etc... They say "You get what you pay for"

I recommend you hire a professional who consults, negotiates, mitigates, and uses the latest trends, and cutting edge technology. We specialize in getting homes sold for top dollar for our clients. Please feel free to contact me so we can tour your home, and recommend anything that may be needed to get you the most $ for your home.

Sincerely,
Cindy Keil
REMAX Professionals
402-819-8553
0 votes Thank Flag Link Wed Nov 6, 2013
When you have one of the most expensive homes in the neighborhood, there needs to be a WOW factor. Granite does sell homes by giving that WOW factor. You need to think about does your home have a WOW factor? A finished basement or large screen porch, something that makes your house stand out. I know in our area, the flat fee listings do not do well. They give you less picture exposure and make you handle your own offers and showings. You have to rent a lockbox from them and run your own website advertising as well. I think you should reconsider what your agent is asking you to do!
0 votes Thank Flag Link Fri Nov 1, 2013
Invite me over and I will be completely honest with you on what needs to be done.

As for flat fee, You want professional representation... its not just the marketing, its the negotiation, and you want someone to give you the results you want and deserve.
Web Reference: http://OmahaHomeShop.com
0 votes Thank Flag Link Fri Nov 1, 2013
Buyers are pretty particluar these days. Be sure your home is priced right and spotless from head to toe. I'm amazed at the things a buyer will notice. Baseboards, cabinets and doors should be touched up to cover any flaws from normal wear and tear. Excess furniture and/or clutter should be put in storage. Be sure all countertops are cleaned off, items off of fridge, etc. Granite is a nice feature, but not a necessary one. Selling a home is no fun, we Realtors are here to make it easier on you. I offer professional staging service on all of my listings and it makes a world of difference. Best of luck and call me if you have any questions!
0 votes Thank Flag Link Tue Apr 23, 2013
Hello Peg,
I strongly agree with Troy,I don't think that adding granite will sell you the property,however I would offer 7%commission what would motivate any realtor to show your property as often as he or she could.What is the most important for any potential buyer is the fact that your house is as you said the most expensive in the area,so they are expecting decor to fit the price.I think you need to lower the price.
Eva
0 votes Thank Flag Link Sun Mar 8, 2009
Peg,

The Realtor that told you to add granite and then raise the price to cover it and the commission does not know what they are talking about. Generally home improvements to kitchens and bath rooms only net you 90-95% of your investment. If you are already at the top end of your neighborhood, then adding granite and raising the price will only work against you.

As for your options on listing your home, flat fee and paying 7% are the two extremes. First I thought all of the flat fee MLS only real estate brokerages in Omaha went out of business; I could be wrong. As for paying 7%, keep in mind that according to the National Association of Realtors the average commission rate nationwide is only 5.1%. So there is plenty of middle ground in between the two extremes. What you need to look at is value. Which real estate agent in Omaha delivers the most value? This can only be answered by looking at their marketing, services, and commission rate.

Troy Trumm
Web Reference: http://www.TrummTeam.com
0 votes Thank Flag Link Sun Mar 8, 2009
After having had your home on the market for the last 9 months, you should have received some feedback from prospective buyers. Can you share with us what they said about your house?
Don't assume that by adding granite you can add that expense to the price. It may end up to be a total giveaway to the buyer. Before selecting the granite color or style, consult with a professional interior decorator. You want your selection to complement the rest of your home's decor.
Regarding the question of how much to pay for market exposure and the real estate agents who bring you the buyer, focus on the end result not just how much you can save in commissions.
Dean Uhing
Prudential Ambassador Real Estate Company
0 votes Thank Flag Link Tue Sep 2, 2008
Good Questions Peg- I would suggest holding off on the granite countertops for now and hiring a stager to help you prepare the home for immaculate condition and pricing it right with a full service real estate firm. If you do decide to do the granite I can recommend a company that does them for $49 a sq. ft. which is a great deal I even had them do the grainte at my house and saved a ton.
0 votes Thank Flag Link Tue Sep 2, 2008
Peg
Let me first thank you for posting your question. You must be very frustrated. Hopefully this post will get you moving in the right direction.

The reason the most homes do not sell is because of price. From April through June over 100 homes have sold. So the Realtors are not on vacation, they are out selling homes, just not yours. Why is that?

Buyers and their Realtors know value. Most markets are buyer's markets, meaning there are more homes for sale than buyers, so buyers buy the homes with the best value FIRST, leaving the rest to sit there and lose value. We know that in most markets homes that sell in the first 30 days sell closest to asking price. In my MLS for August homes sold at 100.8% of asking price. After 120 days that drops to 93.6% of asking...and that is AFTER some price reductions.

So in order to get your home sold for the highest price you need to market it correctly (clean, declutter, de-personalize, stage, professional photos, then market to Realtors effectively). Using a MLS Entry Only broker will ''save you commission", but the fact is that based on my surveys their listings fail to sell, if they do sell they sell for on average 2% less than Full Service Realtors. Why?

What you get from a Full Service Realtor is market knowledge. Selling a home is more like chess than poker. It is not chance. It is knowing the inventory, pricing it right, and getting it sold in 30 days. By "saving the commission" you end up losing money in the long run because you are selling blind, with no idea what is going on in the market.

I would like to refer you to a top agent in Omaha. If you are interested in interviewing, contact me via my Trulia profile and I will be happy to help you.
0 votes Thank Flag Link Tue Sep 2, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
What is the price range of the home? If you are close to the $300,000 range buyers are expecting granite. If you are already one of the most expensive in the area putting more money into the house is not usually a good idea. Is you home in the best condition it can be and have you staged it to enhance the sale?
0 votes Thank Flag Link Tue Sep 2, 2008
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