Even better - price it accurately and you might not need to "drop" it.
One other thing...so many Buyers are doing their own searches on the internet that a lot of what we show them are properties they found themselves. They don't see the agent commission on the online marketing of the property so they would not even know if you offered more commission...but they will definitely see if you lower the price. Many may also have their favorite areas set up on auto seaerches by their agent. Most of these searches will send an alert out when the price changes. None that I know of send out an alert if the commission changes.
LOWER THE PRICE. LOWER THE PRICE. LOWER THE PRICE!!!
Or, as Hank stated, price it right to begin with and you will sell it faster and net more overall the majority of the time. Now is the time. This little pop in the market will probably fade pretty quickly as we get back into the fall "back to school" season. Take advantage of it while you can.
Best of Luck
Keller Williams Realty North Atlanta
Key Locations Property Management LLC
I also have a few blogs on my Trulia profile that may be of use to you when considering values on homes.
All the Best,
Jim Sweat, ABR, CRS, GRI, CDPE, e-PRO, ILHM
Sandals Realty http://www.ExplainShortSales.com
My advice is to go through your home and view it as a informed buyer would view it. Maybe pretend to be a buyer in your neighborhood and see what other homes are offering. Then price your home accordingly. THEN most importantly, stage it accordingly. I will tell you that nothing but nothing ended my interest than the smell of pet urine in one house, the illegal electrical panel in another, the DIY special that left me in fear of what was behind the walls or busy homeowners that left the clutter stuffed to each and every corner. If you are too busy to clean the house, then what is that to say about the maintances required on a home?
For us contemplating the purchase of a home now with the forecast for further decline in the value of property, we are looking for as much value as we can get so we can sustain the forecast decline. I offered the best value for the property I could afford. If you disagree, there is another house in the neighborhood that is calling for me to look at it. It is very sad, but it is reality.
As to the buyer's agent's commission, the house on which I place my bid is a short sale. My last instruction to my agent prior to him presenting the offer was that if anyone hinted of decreasing his commission he is scuttle the deal. He worked very hard for it and I will NOT see him cheated. A good buyer will take care of his agent.
Tim Honeycutt, soon to be northern NJ.
agents do not purchase your home... i've never had a buyer purchase a home due to my recommendation, or so that I could be paid more (either through commission or bonus)
buyers buy homes if they fit their needs. period.
First of all, I wish you much success in selling your home. I believe the two most important factors in selling your home in todays market are:
* Price value relationship of your home and neighborhood
* The condition of your home
Buyer's in todays market want these factors with any home they are considering along with the right floor plan, neighborhood , location, schools etc. My vote hands down give the value back to the potential buyer.
Keller Williams Realty Intown Atlanta
621 North Ave. NE, Suite C50- Atlanta, GA 30308
My experience tells me that you need to find where your house is weak and plug that hole.
Common areas of weakness:
1) cosmetically undesirable
2) structurally inadequate (needs too many repairs)
3) list price may be off (remember that market value changes over time)
4) marketing may be inadequate
5) the commission (usually not a weakness, but can be a strength in the right circumstances)
So if a strong and accurate CMA indicates a fair asking price and your home is "move in ready," then evaluate the marketing. You'll know where you stand with your marketing by how much response you've gotten. If you haven't gotten at least 3 to 4 lookers per week, then marketing is at least one weakness you face. But the number one thing you can do to sell your home (assuming the marketing, price and condition are in line) is to make it really stand out to your potential buyers! This can be done fairly inexpensively.
As far as adjusting the commission goes, this is something that ideally should have been done right to start with. It has a more limited effect once the house has been on the market If you are considering this, try refreshing the home's appearance first. It may be more money out of your pocket today, but it's actually much (MUCH) less than the cost of your home not selling for a long time; just think of all the additional mortgage payments, taxes and reduced selling price.
Overall, my advice would be to hit the house as hard as possible with a makeover, possibly adjust the price (but not too much below what a CMA indicates) and, if it seems best to you, you could throw another 1/2 or 1% on the selling ending of the commission. There's no such thing as "average" or "standard" commission, but I can say that your home's odds of selling increase with the commission... BUT you simply must make sure all the other factors are in line first and use a commission increase as something of a last resort.
My best suggestion is to talk to your agent....
Sherri Orendorf, GRI
Century 21 Alliance Realty
David Brower, Assistant Manager/Realtor
What is your agent advising?
If they are advising anything different than the consensus found in these answers, then what planet are they from?
Buyer's agents, in this market, are glad to attend a closing. Pay them 3.5%, or a minimum of 3.0% of the sales price as a fair commission.
If you do not get your price right, then you join the 90% of sellers who fail to sell at their initial list price.
Sounds like you are already in that club. Just don't be in the 70% club - the 70% of sellers who fail to sell at all during their listing period.