Wayne Smith

I'm a bit amazed at the lack of understanding of the DDA roll in Real estate transactions. Come on folks...go back to the basics...read your lesson guides...and for those agents who's States do not advocate DDA I wonder what your basis is for commenting other than posting an opinion that lacks be grounded in experience and fact.
Remember that a DDA can be ANYONE who has their license with the same Brokerage and it does NOT mean it has to be the same agent! So, you can go through the what if's all you want. The Code of Ethics and the Consumer Information Statement in NJ explains it all pretty well. For those of us who actually take all of this seriously and conduct business well within the guidelines it's not an issue. For those of us who work for a Brokerage that tends to bring buyers to our listings as well as others listings it's a daily occurance.
Being a DDA levels the playing field. An agent must provide a completely balanced playing field both information provided and information of a confidential nature kept confidential. A DDA can NOT guide or recommend a specific offer price but must provide the same information to both sides and allow both sides to derive from that an accepted/offered price.
This (DDA) happens all the time, is discussed in the fundamental licensing class that each took to pass the NJ exam and get their license. If you feel that you can not adhere to the standards fine...DON'T go there then. If you can and with all honesty and with the knowledge that your actions can and should be looked at and proceed in fairness...GOOD, live long and prosper as Spock would say. - Sat Sep 20 2008, 19:07

I can honestly say that I have had very few cash buyers. Yes, I have had those that have sold a home and have purchased another but nearly all went through a mortgage process. Maybe it's because they "moved up". Even my investor clients have taken out some sort of loan be it 201K or whatever.
Here in NJ, after 09/11/2001 it is incumbant upon the Realtor to report to the State police any and all buyers that are SIGNIFICANT cash buyers. Hence, there are not that many, but not 100% for that reason. Affordability has a lot to do with it in this marketplace. The term "significant" has not been completely defined but hey...that's the marching orders. - Sat Sep 20 2008, 18:44

TLCVIP,

I have no problem showing FSBO's. Have done so and will continue to use that inventory source.
However, it's a source of low priority, especially since inventory is high of listed properties. A listed property here has
1.) a completed sellers disclosure many FSBO's do not
2.) a contract to pay a set commission
3.) are ones that an agent does not need to hunt down to find or coordnate showings based upon the convenience of the owner....it needs to be at the convenence of the buyer in a buyers market.
4.) are represented by a professional listing agent who is the "emotion filter"
5.) are represented by someone who shares the paperwork load and knows the process and procedure and adheres to it
6.) a representative (agent) with a fiduciary responsibility to the seller
7.) checks and balances and under the strick code of ethics
8.) have a far far better chance of being in a condition worthy of showing because a listing agent has discussed what to do and what not to do. Most of the FSBO homes I've showed have not been in "showing condition", the owners follow the customer and me around like our shadow which should not be done and shorten the actual time in home and is counter productive.
9.) FSBO home owners tend to not have a grasp of the anti-discrimination laws and I've had more than one that have stated things that made me cringe in front of a prospective buyer.

The FSBO deals that I have done are twice the work, twice the errors and ommissions exposure, tend to be over priced, feel that they understand the industry and have no idea as to the legal aspects of a transaction and rarely have gone to closure.

Your term "greed" is not what it's about. It's about items 1-9 above.

My advice, hire a professional agent. The median price difference between a FSBO and a full service broker selling price is 15% LESS for a FSBO. This more than pays for the added fees. - Wed Jul 23 2008, 14:20

Ed,

The SITE with the greatest number of hits is by far realtor.com. Others are trulia, zillow, oodle, homes.com, harmon homes, propbot, bargainnetworks just to name a few. So these are the best sites to LIST your home.

The best way to SELL your home is to interview and hire an internet savvy, experienced, full time, aggressive, successful Realtor who will use all the above PLUS the local MLS data base. - Wed Jul 23 2008, 13:26

Mike,

I have scrolled down and found your response of....... most agents are looking at a 6% and at that rate you will have a hard time breaking even. Are you looking to purchase a new home in or around the area? If so, remember that you will probably get more house due to the price corrections. Also, like I mentioned in my prior post on average a FSBO gets 15% LESS. How will that affect your break-even point?
The 1% difference in commission versus the 15% less number will far, far outweigh the listing brokerage fee. The important thing is to "right price" your home. I find that most FSBO pricing is off the mark since the price reflects what the seller needs versus what a ready willing and able buyer will pay. As mortgage rates creep upward a buyer's "power" is decreased. It appears that the longer your home is on the market the closer your getting to "break even". The correction, in the Hunterdon Count an NJ area is expected to run through 2009. Yes, the most dramatic correction appears to be behind us, but a 1% further correction takes you out of the break even zone. Readington has a 10 month inventory level and Hunterdon County as a whole is 12 months. I prepare "Absorption Rate" statistics for by Broker by Township for Hunterdon County. You need to get the word out to as many agents as possible as soon as possible. The MLS is the fastes way to do that. I also suggest that you look to someone who will also enter you home into both the Garden State MLS as well as TReND. These 2 data bases cover nearly every agent in NJ and most in the Eastern part of PA. MLS listings feed into realtor.com which is the most popular search site for a potential buyer. In addition to trulia, zillow, oodle, NJ.com, homes.com, craigslist, and a host of others are part of a full marketing campaign which will help reduce your days on market IF your home is priced properly. - Wed Jul 23 2008, 11:05

Mike,
I'm a bit confused for which I apologize. Most FSBO sellers try this route in order to attempt to save the Real Estate Broker fees. You are offering close to a full Brokerage fee with your 3% + 2%.

According to the NAR, 90% of buyers, regardless of where they find a home for sale, will work with an agent to purchase that home. A large percentage of these buyers find a home through an agent and find an agent through the home listing. Also according to the NAR the median price for a FSBO is 15% LESS than a home listed by a full service broker.

So, here's my confusion...since you are offering a good broker fee what is your reason for not taking advantage of the added agent exposure and representation by listing your home with a broker? In addition to the 5% you are willing to pay out you also state that you will be doing the Open Houses. You will have the added expense of advertisement for your home and the Open House.

This appears as though you are willing to pay our dentist, but will perform self administered dentistry. I'm not trying to be "smart" with that analogy but simply confused. If you have had a less than stellar past experience your direction is more understandable. However, not all agents are alike.

Could you clarify why you are trying this on your own? Remember, every agent that you will be associated with under your current direction is trying to get the LOWEST and BEST terms for the BUYER. The only agent that is working to get the HIGHEST and BEST terms for YOU is your "sellers agent".

E-mail your property information to me so I can keep it in mind.
Heck, I'll do the Open House for you....call me and I'll explain how this can be done. I already have a listing in Readington so I have people (from prior Open Houses) that are looking specificially in the area

My focus is Hunterdon, Somerset, Warren, Mercer and Bucks County PA. - Wed Jul 23 2008, 09:31