Real Estate Blog - 20/20 Says Agents Sell their homes for more than their sellers....

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20/20 Says Agents Sell their homes for more than their sellers....

I had to record this show last night as I was busy with other things. I was intrigued by the comment of one of those interviewed praising the FSBO practice & saying that agents don't have their sellers interest at heart. They cited research that claims agents sell their homes for 3-4% more than their sellers homes and they leave the homes on the market for approximately 10% longer. They advised this shows that agents tend to 'hold out' for higher offers and should be advising their clients of the same thing. This got me to thinking....

Do you suppose that agents homes actually sell for more because as agents they do more to prepare their homes for sale? I know when I look at homes on MLS when I am prospecting agents homes actually do tend to look better. I also know that I stage investment properties owned by agents more than those of average consumers. Average consumers don't want to spend any additional money, agents seem to understand the value and are willing to part with the cash. I think it is also interesting how close to the 3.9% higher sales prices staged homes garnish over un-staged homes is to the 3-4% higher sales prices of agents... hmmmm....

Now what about the 10% longer? I would be willing to bet that agents, after taking the time to prepare their homes also list them higher. Do they list them at higher costs than they may recommend for their clients? Well, ok, I'll give them this one, but if the clients aren't willing to do any preparation... Besides, how many clients would be willing to 'hold out'? As an ex office manager for a real estate office, I would say NONE! If the offer is good enough, they will take it. Agents may be more likely to counter, etc knowing trends that sellers will not understand no matter how much they explain it!

What do you think? Am I onto something? Should I email 20/20 with a rebuttle?? (Ok, I probably really won't do that). What did you think about the show in general? While it was flattering to staging professionals, it surely was against real estate agents!

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First Impressions Home Staging & Interior ReDesign is a nationally award winning company owned and operated in Summerville, SC a suburb of Charleston, SC. We provide high quality staging for both occupied and vacant homes in the greater surrounding areas and beyond! For more information please visit, www.WeStageSC.com. If you are interested in learning about making Home Staging your profession, please visit, www.StagingAndRedesign.com for more information.

Posted by Melissa Marro www.StagingAndRedesign.com www.RedesigningCharleston.com on 06/23/2007 02:23 PM

Comments (10)

2020, real estate shows, abc, staging

Originally posted at: Staging And Redesign - My View of the Industry: 20/20 Says Agents Sell their homes for more than their sellers....

10 Comments on 20/20 Says Agents Sell their homes for more than their sellers....

JUN

2007

you should e-mail 20/20!! I dare them to take you on:-)

1) Agents buy better as in Location, Location, Location - so they sell higher too.

2) Agents usually aren't relocating, so they aren't pressured to sell quickly because of their new job in another State.

3) Agents sometimes list their houses not to sell it at all, but to get lots of new buyers. So longer is better if the goal is to get more buyer calls from the sign.

Lots of things to think about. Is every "Agent Seller" really ONLY a seller? Or is he using his house as a work on a hook first and THEN selling it. That wouldn't be ethical if it was a client's listing, but for his own house, maybe he wants to use it as a lead generator first until he finds the house he wants to buy.

I didn't see the program Melissa, but Terry Haugen also blogged on this. You are onto something. I think more than a single voice will be more effective - find & blog the contact information for AR members to repond to re: the program & network.

There is a strong body here with industry voice. What do you think?

I saw it and did not like the way they portrayed the agents & market. I have seen how they can manipulate & twist what is said to get the story they want. I am sure we have not heard the end of this. A similar story was on the Today Show this morning about an agent from Dallas, TX talking about the Dallas market & how she sells homes better as a Broker.

Hum, Good thought to ponder. As a 30 year real estate veteran and 15 home sales of my own, including vacation homes, I can say I am forever on the move, I should have handles on my furniture! Oh yes, moving again. Most real estate agents are sensitive with what it takes to sell and don't want their homes lingering on the market. Price, location, and condition. Have I always gotten the almighty buck? No, market trends prevail. And I home stage professionally.

The fallacy of real estate agents having discretionary money to buy location, location, location can't be so or there would be more agents than there is already looking to flip a home with location, location, location. HA.

News media and commentators have give Realtors a bad time, the media wants to become the real estate professionals when advocating for their programming, they wear the hat on of whatever profession fits the storyline. This is what makes a good news worthy article. Controverse is news worthy. It's their nickel. They got our attention. The new media has forever given misinformation to the public. When was the last time you met a news commentator turned real estate agent? Send them your voice, This is why we have freedom of the press. Good Luck!

I saw the program Melissa and it was very biased. I later read that the station asked NAR for their comments but didn't pass them on to us, the public. I have been taught that the first offer is uaually the best (because it hasn't been on the market longer?) so I don't have my clients hold out. Of course if it's really low ball, the client won't bother to counter. The information you gave about agents selling their own homes was interesting to me. Never thought of those tricks.

Bev Van Horn, Realtor

www.bevvanhorn.com

I think you got it.... I know I put a whole lot of prep work into selling my home a few years back. They present facts and then assume the reason instead of actually researching... oops... their bias is showing.

This show was produced two years ago, in a dramatically different market. It's not so easy to sell a home without a professional today and Realtors® have unrivaled experience in this kind of market. Homeowners who sold their home with the help of a professional averaged 16% more on the sale of their home than those who went it alone. In contrast to the small study recently released about Madison, Wisconsin-these are findings of a national survey of more than 3,000 transactions. The real estate industry has harnessed technology to the benefit of consumers, and will continue to do so. Real estate is both high tech and high touch. There is no such thing as a "standard commission." Commissions are negotiable and prices vary. The fact is that commission rates have decreased 16% from 1991 to 2004 (Source Real Trends) And yes I think you should send them a rebuttal. It's sad that they have to rerun old news and news that really doesnt fit todays market.

Hi Melissa, I saw the show and thought it made us stagers look like a bunch from the looney bin, what with that stupid ASP song and the high fives. They also said usually 5-6 stagers do a house. In whose dreams? And they ballparked a price, which in my opinion would drive people away from staging. I think the segment sucked big time.

Terry Haugen - STAGE it RIGHT!

JUN

2007

Melissa - I agree with everyone's comments. I think Terry said it best "the segment sucked" ... I think somebody needs to take on 20/20 and why not you? As a matter of fact, I dare you to visit their website and click on the "talk back" button and leave your opinion.... As a matter of fact - I think all of us should. You first.

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