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