You have already received some good answers to your questions; however, having listed and sold a home close to you AND having brought many buyers through homes like yours, I thought I would offer my opinion.
First and foremost, I believe your home is over-priced. Seven of the nine most recently sold homes near you have sold for below $250,000. The two that sold for more were larger or completely remodeled; but even with those big differences, they only sold for between $250,000 and $260,000. The mere fact that the majority of the â€œcompsâ€ have sold for below $250,000 tells me that you need to be priced AT LEAST just under $250,000 in order to attract the buyers who will ultimately buy your home. Buyers normally search for homes in price increments of $50,000, which means the buyers seeing your home are shopping in the $250,000 to $300,000 range. Not only does that put you up against some serious competition, it also means that youâ€™re missing your target market !
Furthermore, you said that the agents who have shown your home have given only positive feedback; and I think I know why. Agents like to deal with other agents. It is far easier to tell an agent that their listing is over-priced, needs work, smells, whateverâ€¦than to tell the homeowner. No agent wants to over-step boundaries or be considered rude, so my guess is that the feedback you are receiving is being filtered by politeness. If you have not received one piece of constructive criticism, then I think this could very well be the case. One way to overcome this would be to have someone other than you call the showing agents for feedback.
Finally, although your offered commission is in line with other listings, the majority of the â€œcompsâ€ offered more. I personally donâ€™t let a commission prevent a sale, but unfortunately there are agents out there who will show the higher commission homes first. In this market, buyerâ€™s agents are working very hard to get buyers off the fence and are showing triple the amount of homes to the average buyer. Although a reduced commission was justifiable during the boom, our current market makes a healthy commission a marketing essential.
Oh, and one more thingâ€¦I would change your listingâ€™s photos. I havenâ€™t been in your house, but the pictures are awkward and certainly donâ€™t highlight any of your selling points. With the amount of competition you are facing, your pictures should draw the buyers in!
I wish you luck with the sale of your home.
The reason that commissions have been traditionally paid by the buyer is that (at least in most markets) there tends to be enough money available from the proceeds of the sale to cover commissions. Buyers are often strapped for cash and don't have enough reserves to pay for commission on top of their down payment and other up front costs.
When I show a buyer a home that does not meet my minimum requirement for commission on a transaction then I suggest that the buyer write an offer that asks the seller to pay the commission that our agency agreement calls for.
If you home is priced based on comps that include mostly listings from full service brokerages, then the price already includes the commission. If your home does not include the commission, then it should be priced lower than the other homes.
It is fine for an agent to discount his commission, but it is not fine for him to tell me what I must accept. If he is not willing to pay my commission, then the buyer has to consider this in their offer, just as they would include the cost of repairs that the seller is not willing to make. IT IS ALL ABOUT THE BOTTOM LINE.
If this seems unfair or unethical to you then consider this situation: How many agents do you think would be showing your home if you offered 0% commission to the buyer's agent? It is just a matter of degrees. Sorry, but I am planning to be in the business for a long time, so if you expect me to work for less than I would make flipping burgers, then you have to understand if my clients choose not to pay out of their pockets to make up the difference.
If you are offering a decent commission (note that I didn't specify how much) then all of the good answers you got earlier are right on. Patience, condition, the right price, and the help of a good agent, will get you the result you want.
Good Luck on the sale of your home!
Eileen Musser, EcoBroker, ePro, Realtor
GATEWAY REALTY INC
Let's be candid. You selected a discount broker for a reason, so save money, right?
Along with that also comes a level of service and expertise. A limited amount of it I might point out.
So now you are asking people that
a) don't know your situation
b) don't know your property
c) don't know your market
So you are asking us to tell you what is wrong, why your home is not selling, and to be frank with you, we cannot tell you. We can offer guesses, but that is all.
You might be interested to know that I conduct a quarterly MLS survey of the performance of MLS entry only brokers, discount brokers, and full service brokers.
This is what I find consistently:
1. Homes listed by MLS entry only and discount brokers fail to sell 33% more often.
2. Homes listed and sold by MLS entry only and discount brokers sell for 2.6% LESS than full service brokers.
3. Homes listed and sold take longer to sell.
So your assumption that Realtors steer clients away from homes listed by MLS entry only or discount brokers is true, but not because they are listed by these brokers. They are typically listings that do not project enough value to be worth showing. The easiest way to add value is to lower the price, although there are probably 20 other things you could do, but in most cases I would say lowering your price is your only option...which explains that you basically are getting what you paid for.
It is impossible to guess what has kept the buyers from making offers. Just remember it only takes one! Somebody will walk in and the chemistry will be just right. Don't be surprised if you get two offers at once. Time after time I see a home sitting for weeks without an offer. Then when one person decides they can;t live without it you suddenly have interest from someone else.
If I were you, I would take a tour of as many of the competing homes as you can get in to. (your agent may be able to help you) Look around to see how yours compares. When you see that some of those have sold, make a mental note of what you think might have made a buyer select those homes over yours. A horse race is won by a nose, and so far somebody else is nosing you out.
I do hope you have success very soon. It's frustrating to feel that you are doing all the right things and still not getting the results you want.
Rest assured that regardless of what brokerage you employ, the Buyer ultimately decides what properties they would like to see. With access to the internet and sites like Realtor.com, it would be very difficult to "steer" their clients. However, since most Realtors are full-time professionals, they may be inclined to show homes that better meet their clients' needs, especially since we preview several homes a day either through a broker's tour or with other clients.
As for offers, be patient. This market is challenging, but if your home is priced right and shows well, sooner than later you will hopefully receive an offer.
If you are dissatisfied with the services being rendered to you, you should perhaps reevaluate your choice of brokerage and begin researching a firm that will provide you the professional representation that you seek. Good luck!
I have been in real estate for 20 years and can honestly say that I don't know a single agent who would hesitate to show a home listed with a discount broker. I assume that your home is in the multiple listing service and that you are offering to pay a commission to a buyer's agent.
We are in a market right now where things are selling - but buyers are taking their time and looking at everything that is on the market. Believe me, most agents would not discourage their buyers from buying your (or any other) home.
You did not mention how long your home has been on the market. My 5 most recent lisitngs have taken anywhere from 1 to 112 days to procure a buyer. Don't get discouraged. Good luck.
Change your thinking. It's a fiercely competitive market. Hire somebody to help you. There are House Stagers to make your house look better. PR people to get the word out. Or Realtors who can help do it all.
It;s sad but "it takes a village" to get a house sold these days! Best of luck to you!
Is it human nature for a Realtor to show the 3% listings before those that are less? Sure. As a Realtor though, we can not - NOT show any home to our buyer because of a lower commisison. But those that are offering more, do tend to get shown more often.
Your realtor should be giving you a written feedback report on a regular basis. You should be able to react to the feedback to improve your listing, as opposed to simply reducing the price. Should you need a good realtor in the area, please feel free to call. Don Bradbury http://www.bradburyteam.com 215-536-6777 x 329
Is there some incentive that your competition has that you don't? are you willing to pay an acceptable commission to the buyers agent?
are there any exterior factors that would deter buyers(location, parking, neighbors, etc)?
The buyers make the final decision on which home they choose, if the agent is bringing them to see your home there is a good chance they asked to see it.
I have sold quite a few homes in the abington area and I know first hand that there are many different "abingtons" around you.
Full service agents usually pay for themselves in the end by exposing you to more buyers and potentially better offers, or an offer for you, resulting in a better net proceed for you.