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One thing that is very popular around this area of PA is the public sale, or auction. There is an interesting debate that goes back and forth when industry pros get together - are they a good thing or not? Here are some pros and cons I have heard on the subject:
Large down payment at time of auction - just about eliminates buyer remorse issues.
Buyer gets to pay both sides of the 2% transfer tax (usually).
Sellers have the assurance of a sale as of a given date (no long-term listings, etc).
Sellers don't have to worry about inspections and addendums since the sale is "as is".
Buyers MAY get a deal if there are no other serious bidders (I hear of this one every so often - I wonder).
Sellers won't have to worry about an offer with a "house to sell" contingency - auctions don't allow them.
Auction sales are not on the multiple listing service - not distributed to agents to be aware of.
Minimal marketing - industry practice is a flyer and an ad in the merchandiser-type paper.
Low attendance (likely as a result of minimal marketing) - only one or two qualifies buyers at the sale.
Sellers are basically trusting to fate that there won't be a big estate sale or something better going on the day their auction comes up, sucking away buyers.
Sellers have to set artificial minimum prices or sweat out the sale for a good price - or be stuck with a low price.
Sellers have to pay a commission regardless and potentially be stuck with poor turnout and results.
There are probably several other points, I hear these particular ones thrown back and forth regularly.
Things I think would be interesting to learn from auctions:
"As is" sales are not a horrible thing - what would happen if more agents started making their listings "as is"? Would the inspection battlefield be mitigated somewhat?
Large deposits - wouldn't it be great to get 10% (or 20%!) down on your listing with the contract! If auctioneers can pull that off, why can't Realtors?
There are a very few auctioneers in our area who are also real estate agents, playing both sides of the fence. One is even promoting a 1% commission to buyer agents on our MLS via broadcast emails. I wonder where this trend will go, and whether the auction world and the real estate market will come together at some point.
Visit Jeff's marketing blog for real estate - lots of great tips for all agents! www.JeffG.me Jeff is also working with real estate agents and brokers to enhance their marketing efforts - let him help you today!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.