Would you like to know how to take advantage of struggling real estate agents? As a home Seller, it is much easier than you may think.
Let's take a look at my local real estate market to get a good idea of what I am talking about...
In March of 2008, there were only 195 sales in the Colorado Springs real estate market. This means that less than 390 real estate agents in Colorado Springs got a paycheck in March of 2008. (I say ‘less than' because some real estate transactions only have one real estate agent involved. For example: The Wagner iTeam ‘brought the Buyer' to 2 of their own listings in March, and there was not a Buyer Agent on the other side of the deal.)
And with over 3,000 active licensed Colorado Springs real estate agents in the Pikes Peak - Colorado Springs area, this means that OVER 80% of the agents DID NOT GET PAID last month.
We will often recommend that our Seller clients offer the Buyer Agent (the agent who represents the Buyer who purchases your home for sale) a higher co-op commission.
See, when you list your home for sale, you agree to pay a total commission (which is determined at time of signing the listing agreement). From this total commission, we decide how much to co-op, or ‘share' with the agent who ‘brings the buyer' ... this amount is generally 3% (in Colorado Springs).
However, in a market where less than 20% of real estate agents are getting paid every month, can you imagine how inticing a HIGHER COMMISSION would be?
Especially in situations where there is a lot of direct competition in the immediate Colorado Springs neighborhood, offering a higher co-op commission can really make your home for sale stand out.
Think about it...
A struggling real estate agent has a Buyer client looking at 3 very similar properties, but ONE property is offering 3.5% co-op commission. At the average sale price of about $225,000, that would mean that the commission would be $7,875.
$1,125 MORE than the same priced home offering just a 3% co-op. A thousand dollars can make a WORLD of difference to an agent who needs to feed their family.
Guess which home this agent will be more likely to promote to their Buyer clients?
In the cases where our Seller clients choose to offer a higher co-op than 3%, they get MORE SHOWINGS and usually get an offer in a much shorter time than their competition.
So, in ‘taking advantage' of the real estate agents who are struggling in todays Colorado Springs real estate market, by offering to pay them more - you are actually helping THEM out and helping YOU sell your home in a shorter amount of time.
Selling Your Colorado Springs Home: How to Compete Against Bank Owned Properties
Selling Your Colorado Springs Home: How to Compete Against Desperate Sellers
Selling Your Colorado Springs Home: How to Compete Against Motivated Sellers
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Hope Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate.