We sold a place recently in about 3 weeks for $30,000 more than it was listed for previously. We are not bragging. Ok yes we are. But what makes this special is that this home was on the market with a FSBO company that offers $1 to the Selling agent. It was listed at $625,000 then the seller chose to reduce the price eventually to $585,000. He received 3 offers and they all failed to come to fruition. We sold it for $615,000. Everybody is getting paid and they are netting over $7000 more than offers they accepted previously that fell apart. nuff said. not really.
Do REALTORS make too much money per transaction?
Do the Sellers really save money by doing it themselves. Maybe sometimes. But how do they know? REALTOR.ca doesn't tell anyone what a house actually sells for. Only what houses are "listed" for. It doesn't tell you the square footage of the home. The room sizes. Strata fees. Property Taxes. etc etc.So what are they basing their opinion of value on?? Their tax assessment? What Joe the neighbor listed and sold for last year?
Why did those other 3 deals fail to complete? Not sure. But one thing I know for sure is....
No REALTORS were involved in any of those deals. Just regular people trying to make it happen. Nothing wrong with that but there are processes that we, as REALTORS go through in order to get a contract through its phases. I am not suggested that deals don't fall apart when REALTORS are involved. They do once in a while. But the processes that we go through eliminate the opportunity for failure as much as possible.
Sometimes there are people out there searching for FSBO sellers because they get to talk to them directly. They can make creative deals and talk people into things that a REALTOR would guard against. These sellers invite strangers into their home and show them around without knowing anything about them.
Isn't there value there? Why do we have to continually prove our worth?
Here is another question...
"Why are these "Buyers" (predators?) not using a Buyers Agent?" should be the first question that comes to mind.
It doesn't make sense. It is a free service and most times the Buyers agent will negotiate a better price than most people would on their own. People who use Buyer's Agents have most likely viewed a number of homes. They have been given sales comparables and understand the market and will have the best knowledge of pricing for comparable homes. Its a fact.
But what about this guy...
I DON'T NEED A REALTOR - I JUST CALL ALL THE LISTING AGENTS. I THINK THAT I WILL GET A BETTER DEAL THAT WAY.
People who call all the listing agents thinking that they will get a better deal, are often wrong. Not to mention, isn't their process incredibly time consuming? If they work for a living and have a family, isn't that busy enough. I know a lot of people spend their time after the kids go to bed, on REALTOR.ca, surfing for homes and think that they are more informed because of it but until you have sifted through and viewed numerous homes you do not understand the market accurately. But to call all the REALTORS directly and then attempt to coordinate showings and match the schedules of the individual REALTORs they are calling and attempt to create a route that is efficient and less time consuming before "nap time" or "picking up the kids from school" or "dinner time" or whatever else life throws at them. This is what we do for a living.
This is the mentality in an nutshell.....
I will do all of this work and it will pay off.....because:
- I don't need proper representation... - you do....you don't know what you don't know.
- I know the market because I can surf REALTOR.ca like a BOSS...what are the recent sales in the area?
- I am a savvy negotiator so I will get the listing agent to give me some of his commission... after all he's getting both ends. Rarely the truth but sometimes it can work. But what is a good price? Maybe it was over -listed by more than the commission he is giving you....how do you know for sure?
- I am a savvy negotiator so I will convince the listing agent to get me a better deal than the client he is representing... - the listing agents bias is with the seller not you. Most REALTORS will represent the best interest of the client who has given them their trust. Not you who has popped up onto the scene acting on your own behalf. Give you head a shake.
Wow this turned into a bit of a rant....phew that was fun.
All the best to you and yours and maybe this got you thinking a bit. We value the people that are loyal to us and our business and we truly appreciate working with everyone that chooses to trust us to take care of them.
Kelly Johnston - Select Real Estate - Chilliwack, BC