Rate Increase Helps SELL Homes!

A curious change has taken place within the real estate marketplace. I'm not talking about the shift from Seller's market to Buyer's market. And I'm not talking about mortgage rates. I'm talking about real estate commission rates going up!

Why would that be, you may ask. Well, aside from increased costs associated with marketing more properties for longer periods of time, this current Buyer's market has also forced sellers to examine new ways to make their properties stand out from competing homes for sale. And one sure way to accomplish that goal is to offer better incentives to the real estate agents. According to a recent (Nov. 9th) article in the Wall Street Journal, such "incentives have become much more widespread in recent months, especially in areas where inventories of unsold homes have soared."

Of course, proper pricing is still the most important factor, but in this declining market savvy sellers are reaching out to attract the attention of the people who work with the prospective buyers of their homes - the real estate agents. When you consider that a 1% increase in a real estate commission can represent a 20% increase in income to an agent, and that only a 2% increase in the fee can result in a 40% increase in what the agent will earn, doesn't it make sense to offer such a simple "reward" to the person that provides you with a ready, willing and able buyer, particularly in this market?

A mortgage rate increase may hurt sales, but a commission rate increase can change the status of a home from FOR SALE to SOLD.

For additional tips on selling your home, give me a call.

Jay Burnham
Find me/Fax me/Voicemail: 978.233.2828
Website: NorthShoreRealEstate.com