House For SaleA Home Sales Primer

(LAKE TAHOE REAL ESTATE BLOG) We could write a book on this one. Others have. So we thought we go back to the basics, to discuss selling a house in it’s broadest and simplest form. Sometimes going back to square one helps bring back focus to us and all involved.

There are normally two opposing and one facilitating economic forces for every home sale:

  • A Seller (one force)
  • A Buyer (opposing force)
  • Two Real Estate Agents (facilitating force)

THE SELLER:
We’ll do Seller basics here, with those for the Buyer and the Real Estate Agents to follow:

Seller’s Goals:
There are 3 primary considerations:
 
1. Sell the house:

  • This is the primary goal of the Seller.
  • It is also the primary responsibility of the Seller’s Agent.

House Sold2. Get as much as possible: (Buyer's goal is the opposite, or opposing force.)

  • Price is the sole decision of the Seller.
  • Agent makes recommendation only.
  • List Agent represents Buyers as well, therefore Agent also knows market from a Buyer’s POV too.
  • Agent may choose to not represent Seller if if Seller appears unreasonable about price and/or time.

3. Time:

  • Seller’s time frame is part of the mix.
  • Time is affected by price.
  • If Seller sets price  too high, house will not sell quickly, and may not sell at all.

Agents Goals:
There are 2 primary and one secondary responsibilities to consider:

1. Sell the house:

  • This is what the Agent is hired to do.
  • It is the Agent’s first responsibility.

Housxe uphill2. Get as much as possible:

  • Purchase price is determined by market reality, not a Seller’s wishes.
  • Agent shows Seller recent market variables regarding time and price.
  • Agent’s job is to Sell the House at highest price possible... within the scope of market reality... within the Seller’s time frame.
  • If Seller sets price too high, or won’t consider offers, if there are any, at fair market price, Seller can make it impossible for Agent to perform.
  • Therefore, when a Seller significantly overprices a home, and the market does not accept that price, it creates a conflict of interest with the Agent’s first responsibility to get the home sold.

3. Get Paid:

  • This is a secondary consideration only for the Agent.
  • This is always subordinate to getting a house sold at the highest price possible.
  • Agent only get’s paid if house sells.
  • If house does not sell, it costs the agent money; all marketing and advertising expenses come out of agent’s pocket.
  • The Agent supports him/herself and their family by selling houses.

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6 Comments on Selling a House for Dummies

Richard, I love your spin on this!  You are sooo creative.  Very well stated!

HAPPY HALLOWEEN!

10/31/2007 01:38 PM by Pasadena CA Real Estate - Irina Netchaev (Keller Williams International Realty)

I like your description of the basics.  This is a "must read" for Sellers.  I look forward to more.

10/31/2007 02:27 PM by Bradenton Florida Real Estate - Dan Forbes (Sarasota Metro Properties)

Gary, this is just toooooo complicated.  Can you please break it down so that it is easier to understand?  Let me get this straight.  We are supposed to sell the house for the highest price the market will dictate in the shortest period of time.  I'm going to have to think about this one.  Can I email you with questions?:)

10/31/2007 03:22 PM by Lake Norman Real Estate ~ Diane Aurit (RE/MAX at the Lake)

Irina - Thanks, and we're all still glad you're back.

Dan - We're trying to break it down... but we're so close to it, one doesn't know, and from this last year, it seems there are some sellers that fail to grasp this.  Maybe we're not 'splaing it right!

Diane - Seller's time frame, whatever that is. They rarely tell us "shortest time possible", but you and all of the rest of us knows sometimes/often that is exactly what they mean. We're working on getting it less complicated;-)

10/31/2007 03:33 PM by Richard Bolen, CRS, ABR, CLHMS, e-PRO Lake Tahoe Real Estate Information (Dickson Realty)

Gary, you broke this down so simply. Thanks, I will forward this to my agents.

10/31/2007 07:18 PM by Missy Caulk Ann Arbor Realtor Ann Arbor Real Estate (Keller Williams Ann Arbor)

I didn't make it much farther than the duck.   I think that has got to be just about the cutest dern thing I've seen in a long time.

11/01/2007 05:54 AM by Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Keller Williams Elite Realty, Bonita Springs, FL)

This blog does not allow anonymous comments
 
Real Estate Agent: Gary Bolen (CRS) Lake Tahoe Real Estate Information (Dickson Realty - South Lake Tahoe)
Gary Bolen (CRS) Lake Tahoe Real Estate Information
South Lake Tahoe, CA
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Dickson Realty - South Lake Tahoe

Office Phone: (800) 923-9022
Cell Phone: (775) 220-2233
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