If you are moving out of state, I am less likely to want to discount. I would sure love to have you as a client, but if you're moving out of state, then after the transaction is complete, I'd likely lose the opportunity to continue to contact you and referral opportunities would diminish.
Given your scenario there will definitely be a few agents who'd have no problem helping you out.
When you hire a full service Realtor, you are paying them for their knowledge, skill, advice and marketing. Much of that knowledge comes from the hundreds of hours that he/she invests on a regular basis to know the market front side, back side and sideways. Much of that skill comes from applied knowledge, practice, and those who have a knack for the business. Quick sale or long time on the market.......the knowledge base is the same for an agent. Your best bet is to hire the Realtor who possesses greater knowledge and skill.
I believe that you are suggesting that marketing costs will be contained as a result of low pricing, which you assume will lead to a quick sale. There is value in a quick sale for you, as most properties sell closer to the ask price when they are fresh on the market. The longer the days on market, the more apt a buyer is likely to assume that you need to negotiate or come down. There is value in a quick sale for the Realtor in reduced carrying costs; both in time and direct expenses associated w/ marketing.
What happens if it does not sell quickly? Are you willing to pay the Realtor more? Does that give the Realtor an incentive to wait it out? I donâ€™t think any (or least a rare minority) would intentionally delay a contract for a higher fee. But, do you really want to offer a compensation that is based upon doing a good job fast will pay you less? This type of compensation offer might also provide an incentive for the Realtor to hold back on marketing. As a seller, it is in your best interest for the Realtor to hit the market strong and running with an aggressive marketing campaign. You donâ€™t want a â€œhold backâ€ that has an impact of a lower sales price.
Assuming you want full service and skilled competent representation, the amount of discount you might get for scaled back marketing will be a minor component of the entire fee. I would suggest that you not cut back on the marketing of your property. If getting a discount on the fee means compromised marketing, itâ€™s not worth it.
If you can find a Realtor who will provide you a comprehensive marketing plan, and who is skilled, experienced and competent, sure, go for it. Donâ€™t be surprised if the response from the Realtors is a cut back in what they will do to promote your property. That trade off may not be worth it.
First off, why would you want to price your home at a price where you could be leaving money on the table? My initial reaction is to have your full service real estate professional price it at what the price to sell should be in your market, and do the marketing job on your home that a pro would do, expect a reasonable amount of time for it to sell, and everyone should walk away happy!
I wish you the best in selling your home and keeping your money in your pocket!
I love your question. As a matter of fact, I am going to share it with my class tomorrow.
The purchase of a home is an emotional process. Part business, mainly emotion. You are approaching this from the logical standpoint. Strong on brains, weak on emotion. the exact WRONG combo.
What you paid, your equity, your improvements, means ZIP to buyers, Buyers are looking for value.
So if 90% of the time a buyer sees the property they buy with a Realtor, you need to attract Realtors.
So, do you think we are stupid? Do we have time to show property that our clients do not want, do not need, and will not buy?
Mr. Coconuts, you are under the mis-understanding that you hold the cards. En contraire mon fraire, the agents with the buyers hold the cards.
So, go ahead. Play that holier than thou role. Are you prepared to amble with your equity? Probably not.
Our job (as listing agents)is to preserve your equity. Your strategy is to sell at the lowest price in the shortest time. Let me ask you this: If you see this ad "prime location, wonderful home, must see to appreciate. Offers to be submitted with pre-qualletter, FICO score, and proof of funds" what would you think?
"Priced below market. Too many improvements to share. Seller will accept any reasonable offer, motivated".
If you were a Realtor representing a buyer, which property would you work on?
We are trained to get our sellers the most money possible and that is what great agents do. Great agents also listen to the clients needs and goals. This is a difficult market for Realtors because we are no longer in a position of raising property values by pushing the envelope as much as possible; but instead, in a position of saving as much equity as possible and still getting the home sold. It is a hard market for sellers. It is clear that you understand you could be leaving some money on the table (and you could not be) and it is also clear that you understand the market is still correcting which means prices are still dropping. I like your comment about the bandaid. In my opinion, talking a seller into a higher price could be a huge mistake in this market and a huge liability if the home does not sell and the seller feels this advise caused the seller to lose money in the end.
In this market, Buyers are looking for deals so I do not think that one person will think there is something wrong with your home. They will know that you are a great deal. Just hire a great agent... the right agent for you. If you have a great agent and you are priced great the buyers will see it and give you your price or close to your price. Additionally, pricing a home at a bargain price could result in multiple offers and a contract for higher than list price. This is still happening in my state and in many other states.
I know you did not like my comment earlier on asking an agent to reduce their commission and that is okay. You have created a win for an agent by deciding to price your home to sell, I am sure that an agent would be willing to create a win for you.
Best of Luck!
Whatever you price it at, you will probably have to come down in price when you get an offer. Buyers are controlling this market and they need to feel that they are getting a good deal by not paying full price no matter how low you price it at.
But if you want the best price for your house, choose a negociator who not only can protect YOUR price but also the wage they bring home to their family. Because if the first thing they do is capituate on their brokerage fee, protecting YOUR money will not be paramount in their dealings with you.
With that being said, I admire the fact that you are only asking this question because you feel you are offering an agent a home that will sell and sell fast. There are no guarantees to what cheap means for buyers in this market. Please remember that you are paying for expert service and knowledge not for time. And please put your foot in the other shoe. How would you feel if you boss asked you to lower your paycheck because he thought he was giving you a task that would take less time, not less skill?
You should price your home to sell because you want it sold when so many other homes are not selling. If you want an agent to take a lower commission then how about pay them the commission upfront since you are basically stating that you know 100% your home will sell fast. Has that confidence level dropped? And if you home does not sell so fast at this "cheap" price because the buyers disagree... are you going to pay your agent for all the additional time, marketing, and advise it takes to get it sold?
Nothing is a slam dunk in this market!
I see properties that are priced right, in good locations, almost brand new and still buyers are hesitant and that's the reality due to low consumer confidence, sometimes its very irrational. If you have a realtor that you have chosen, you might talk about this issue and maybe find a solution that you can both agree with. However, human nature is when you know you're going to get paid less on something, you tend also not to want to work it as much. If you list very low, then the commission will be low too and then you're asking for a discount on top of that. I don't know. If it requires virtually no marketing at all, maybe, but I highly doubt that in this market. Not trying to discourage you, everyone should look out for their best interest so I understand where you're coming from.
Good luck to you and hope you sell your house fast!