There are a few things that I would recommend you do before you list your house
1. Interview a few agents that specialize in the local market. Ask how they plan to market and sell your property: Internet presence, mail/e-mail campaigns, telemarketing, etc.
2. Have them prepare a market analysis with comparable sales for your property. Make sure that they have supporting documentation and are not just "telling you what you want to hear" to get your listing.
3. Once you find a Realtor that you have confidence with and know will get the job done, ask them to have their title company prepare a sample HUD (settlement sheet) that will show what all of your expenses will be as a Seller. This will include commission, realty transfer fees, out-of-state (non NJ resident) transfer fees, recording fees, etc.
At that point you should talk with the agent to determine whether now is the right time for you to sell your house. If you thought this information was helpful, please give me a call. I would like the opportunity to interview for the job of your Realtor.
To begin with , I think it is important to arrive at a value of your home first. Nothing happens if you dont get an acceptable offer. You mentioned that you are willing to sell your home at 07 prices. I think that most sellers in this market feel the same , if they can get out of the property for what they paid it would be an accomplishment. Unfortunately you purchased in the height of the market and unless you got a great deal for that time , you may have trouble breaking out even.
Regardless of what anyone else will tell you " the market determines the value of your home" . The value is not determined by the seller or the Realtor. You can listen to 10 different people and get 10 different values. The bottom line is that unless your home has some extraordinary amenities there will be a few almost exact comparable sales that have sold within the past 3 months to get you a TRUE value. You may be tempted to list your property with the highest value that someone gives you , but that will only cost you in the long run. We are in a declining market and depending on who you get your figures from homes are depriciating 1 - 2 % per month. If you price too high at the start you will be trying to chase the market as it declines. If you price too high it may get overlooked and sit , all the while your potential buyers are making purchases in the markets SELLING RANGE . I recommend that my sellers price themselves 10 % lower than the selling range. You may think that's stupid, why leave money on the table. You can ask any Realtor or Buyer in this market , if they were to see a home priced 10 % under market how quick would they be able to get you a contract. I would suspect that every Realtor has a buyer that is looking for such a deal and most savy Buyers are watching daily also. So lets say you get the activity and loads of showings , then I would have accomplished my goal, TO GET BUYERS THROUGH YOUR PROPERTY. I would also expect a fair amount of offers and that would put you in a Great position. You now will have a few offers to play against each other with the hopes of getting them to bid it up over the asking price to insure they get it. At this point I will give all the buyers a Highest and Best date and time and have the buyer choose the best price and terms. This will accomplish what you set out to do, sell it for the highest price in the shortest period of time.
The alternative is to price it slightly above the selling range and expect the buyers to offer lower and you will end up with the price you want. . Well I am sure that most sellers think that way but , the longer it sits on the market the less it will be worth. There are plenty of sellers that think that way. You can see hundreds of them on the market , none of them have a chance until they get in right range. If a home sits on the market more than 60 days with out pulling an accepted contract its over priced and will have to chase the market down.
You have to be ahead of the pack , you dont want to be the one that says " I should have ".
With a quick search it looks like the average days on the market for an active listing is 125 days . If homes are depreciating by at least 1.5 % per month and the average home has been on the market for 4.16 months that would figure that by the time a listing hits the 125th day it would have lost 6.25% in value. If there were no reductions in the sale price to that point , it would now be 11 - 16 % priced too high and already a stale listing. This is not a good place to be.
To sum this up , price it to get the traffic , the traffic will pull the offers, play the offers against each other and have it under contract in under 30 days and you should net your best number and settle in the shortest period of time.
To answer your original question, Realtors commissions should be concidered a fixed closing cost that is normally 6-7 % . This fee covers paying the agent, advertising,office staff , insurances , signage, office supplies and any other office overhead that is needed to insure your property gets sold for the highest price possible in the shortest period of time.
EDWARD ( AUGIE ) AUGSBERGER Local Realtor / Business Owner
WEICHERT COASTAL REO
DIRECT - 609.338.1189
Step 1.) You need to speak with a few TOP Realtors in your area and determine current fair market value based on recently SOLD comparables. (Please try to tune out the agents who will tell you what you want to hear. Look at the real numbers.)
Step 2.) Make an informed decision based on the facts.
Commissions are negotiable. When a Realtor comes to your home, be sure to review all the marketing and services the agent has to offer.
If you would like some assistance, I would be happy to help you.
I can email you some information to review.
Feel free to contact me anytime!
Best of Luck to you and a quick sale!
Coldwell Banker Casa Bella Realtors
Ocean City, NJ 08226
I am located in the Flanders in Oean City, am very famiiar with the value of the properties in Ocean City and would be able to do a Market Analysis of your property and provide you with an objective starting point to get the most value for your property. We've seen an increase in activity and now should be a good time to list your property in Ocean City. Emai or give me a call....
Talk with several local agents and ask them to be prepared to discuss proposed pricing. Also ask the agnts to be prepared to discuss how your local market has changed over the last two years, and to bring supporting details. That will really give you your answer. As Cathy has said, you can try to sell on your own. But you are likely to have better success with the services of an agent. So much has to do with pricing correctly and maximizing exposure.
Good luck to you,
Unwavering Commitment to Service
Find success at http://www.feenick.com
In New Jersey, you are not required to use an agent to help you sell your house. Also here in Middlesex County, NJ, home prices have decreased about 15% Vs 2 years ago.
The "realtor's fee" or commission collected to sell or home is a value that is determined by the seller of the home. I reccomend meeting with multiple agents that specialize in the Ocean City market, and inquiring about what percentage of the final sale price they will charge to sell your home. The commission rate will likely be similar among the agents that you speak to. One reccomendation I have is to not base your agent choice on the lowest commission charge but on the agent you feel most comfortable with. You can also negociaite "in house" commission rate where if two agents from the same company sell the property then the commission is reduced to a lower fee.
As mentioned in an earlier post pricing is a key to getting your home sold. The Ocean City market has a large build up of inventory and placing your property in the correct position is THE most important aspect of obtaining the quickest sale possible.
All Broker fees are negotiable and there are additional fees you pay as a seller that you'd need to account for out of your proceeds. You should really have a Realtor come out to give you a pricing opinion for your home in this market, and an estimate of what you'd net at closing after paying all the costs involved. It is difficult to give you detailed advice in this forum without knowing more about the home. The location of the home, and the home itself will determine the difference in value since you bought two years ago.
If you'd like to discuss your property further, or have any other questions, please feel frree to contact me at any time.
Barbara Smith ABR/GRI