Based on my experience, I believe it has been proven that discount commission brokers can only survive during a sellers market. See how many of those have disappeared lately. Full commission brokers prevail because they provide great service for their fee. Discount brokers by definition are number crushers, not service oriented.
The fact you are offering 3% to a buyer agent proves you are aware of the above facts. However, in this overcrowded market, there are so many choices that offering a slightly higher buyer agent commision will be the flag to get your property shown first. Or you can advertise an insentive to the buyer, like shared closing cost or 3 months free rent; things to make your place more desirable. The fact that prices have dropped does not mean the process of buying and selling works any different, if anything this is when we need to make our properties shine in the eyes of the buyers and the buyer's agents.
Just my point of view, hope it helps.
Why would you as a Realtor expect someone else to work for either nothing or very little. they out there working to support themselves and their family.
Given that you are or were a Realtor your question honestly blows my mind. In essence you're simply saying, "I'm more important then you, please help me by absorbing some of my loss and work at a discount."
I'm sure you can find yourself many agents willing to do this as their not good agents, their desperate for any income and you'll get exactly what you paid for.
I see nothing wrong with you representing yourself on the seller side and only paying the buyer agent and there are many discount firms out there who will put you into MLS for a flat fee of $300 - $500 dollars.
I do feel for you, just as I feel for any of my clients who may lose money selling, however I myself have speculated many times on real estate, have made money and have lost money and when I lose my loss is mine alone, I've never asked anyone to share it with me and you shouldn't either.
After all there were some companies that would charge a flat fee to list your home in the MLS ONLY.
You will get what you pay for. if you find an agent that you like and you would like to get a lower commission, talk to the agent and see if it is possible. The market is challanging so sometimes we as agents have to make some conssessions to make a transaction possible.
Realtor commissions have to do with their attention to the listing they represent. The commission is used to market the property, not just list the property, getting as many buyers to the property as possible.
Many sellers who are upside down are hopefully short selling their property instead of waiting for a foreclosure to occur. With a short sale, the turn around time to purchase is 2 years. They are not paying the realtor because the lender will pay the realtor. They are the one's losing their investment.
You are in a situation that is also difficult situation as you are not selling your property and 5 months of time has already transpired. Maybe you should be short selling your property instead of not hiring the correct realtor to get it sold. There may be more factors than the commission that you are speaking of as to the reason your property has not sold.
Susan Penn, PA, SFR, CDPE http://about.me/HomesForSale_SusanJPennPA
EWM RealtorsÂ® | A HomeServices of America Company | An Affiliate of Berkshire Hathaway
2000 Main Street, Suite 103 | Weston, FL 33326
T: 954.306.7337 | C: 954.557.5993 | F: 954.515.0200 | firstname.lastname@example.org | http://www.ewm.com
times are tough.
Realtors (who are active and full time) take a business-like approach to listing and sales.
For example, if you are offering 3% to the selling agent (representing the buyers - please see link below). and planning on "selling my home myself because i am an agent'---is that correct?
Here are my answers:
1. If you expect me to handle 'both sides" of the transaction, and risk my errors and omissions insurance, for 3%, you are high. Why, in a buyer's market like yours, would I just one ONE side for the same money.
2. "Real estate agents", active or not, are the WORST clients. I would charge your extra and tell you to stay out of the transaction.
3. Any "real estate agent" who has had their own property "on the market ' (does that mean with a sign in front, in the MLS, listed with a full time serous broker.....?) with a listing for five months needs to ask themselves one simple question....if homes are selling, why not mine...and the answer is...it's price too high.
No offense, I would probably turn down your listing and work with a first time buyer with good credit.
There are buyers and people are selling, the only thing you have to do is price it rite and advertise a lot.
What makes your property better then the one next door, that is what you need to establish and if you can show them way, people will buy your property.
The standard commission structure is 6%, 3% to the listing agent and 3% to the buyerâ€™s agent and you know that already, any realtor that asks for less he is not a good realtor and he will not sell you property.
The top Realtors ask for more because we do more and we will sell your property.
If you have any questions fill free to contact me.
Prudential Florida Realty
1306 S.E. 17th Street
Ft. Lauderdale, FL 33316
You must look better than the competition with great photos and many of them. Use a wide angle lens on the camera to get more of the room in the picture. A small closet looks big. Try shooting open room shots from your knees and standing in a chair. Make sure the rooms are well lit. Change your first photo seen on the websites sometimes. Every free website you can find put your listing on. Shoot a video in your condo post it on u-tube or myspace. Your car is a moving billboard, your email signature, return address on a letter....just add for sale under it.
I just started showing homes to a couple from Germany. They pulled all their listings off the internet before they left. The chose homes with "pretty pictures".
The reason is that brokers have to spend more money advertising properties in a bad market, so discount deals make less sense.
However, if you're in Florida, the difference between 5% and 6% is not your problem -- the difference between what you hope to clear and what your property is worth is your problem.
You have to price your property off recent sold comps, not what you have in it or what starry-eyed sellers down the street have on the market.
The other thing you have to do (and you may be doing it already, I don't mean to sound stern) is spend some advertising money to get your property sold. Here in New York City the best investment is a professional real estate photographer who will take fantastic pictures -- don't know what is working down there, you might have to investigate.
author, "Diary of a Real Estate Rookie"
Insider Real Estate Tips with a Twist of Humor: http://tinyurl.com/2ag28z
I am not in your market area (I'm in the Tallahassee real estate market), but your question is a good one and I believe the answer is the same everywhere.
In every profession, there are good performers, and they are the majority. There are a minority that are poor performers, and another minority that are great performers. In most professions that I have dealt with, the firms and individuals who fall in the "great performers" group are able to charge more for their services because they bring results.
In this current market, where less than 1/3rd of the homes on the market will sell this year, I believe somebody in your position should hire the best person available. You should expect to pay more than the "standard" fee, because that only buys you "standard" service.
Plenty of homes will sell in Fort Lauderdale this year. Yours can sell too. Pay the extra money and get the service that you need. Interview wisely and select the company that can bring you the results.
Century 21 First Realty