I could simply tell you that I am a Broker Associate with Oakhurst Real Estate, a great company, and have lots going for me, so just list it with me. But you can get advice like that from just about anyone with a license. It is a good idea to find a local agent that you are comfortable with and that you can trust. If you have worked with a local agent in the past, and were satisfied with the way things were handled, and that agent is still available, you may have the question answered. We have many good agents in our mountain area, and finding one need not be a difficult chore. Take me, for instance.
Some sellers use the high bidder/low bidder approach. They interview multiple agents and go with the one willing to list at the highest asking price and at the lowest commission rate. What a perfect way to shoot yourself in the wallet!
•1. If the asking price is too high, your property is not likely to sell at all, or even be shown. In the unlikely event that you do get an offer that is significantly higher than market value, and the buyer can pay all cash, you may be o. k. In the real world, it is more likely that your buyer will need a loan, and the property will appraise below the purchase price. When that happens, a contingency in the standard purchase agreement allows your buyer to just say no.
•2. Another fallacy is that a seller can save money by negotiating a lower commission rate with the broker. On the surface that sounds good for the seller, but records show otherwise. When MLS member agents look up listing information, the commission rate is prominently displayed. Try asking yourself, if you were an agent and you had a choice of showing a property listed at 5 percent, or one of several similar properties listed at 6 percent, which would you show first and most often? And if you found a property listed at a commission rate even higher than the customary 6 percent, what would that motivate you to do?
An examination of all mountain area residential properties sold (closed escrow) through our local MLS in July and August, 2006 revealed the following
July 2006
Homes listed at 6% took an average of 137 days to sell at 94.9% of original asking price.
Homes listed at 5% took an average of 163 days to sell at 88.8% of original asking price.
August 2006
Homes listed at 6% took an average of 124 days to sell at 91.5% of original asking price.
Homes listed at 5% took an average of 209 days to sell at 87.5% of original asking price.
The two groups that a seller needs to incentivize (that's a good word, I looked it up) are potential buyers and potential selling agents. A fair price motivates buyers and a good commission rate motivates selling agents. The seller is the winner.
If you are planning to sell real property and do not have agent you wish to work with, I would be happy to represent you, list your property, effectively market it, get it sold for you, an
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