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There is Always Somebody Cheaper

By
Real Estate Agent with Raleigh Cary Realty NC Broker #178638
A client’s brother recently listed his house with a discount broker, one of those who put the house in MLS and disappear.  My client asked if  that kind of competition worried me.  I said,  “No. There is always somebody cheaper.  You don’t live in the cheapest house you could find; you don’t drive the cheapest car.”   She said, “I get it."
 
And there is always somebody cheaper.  If the FSBO seller is lucky, it’ll be fine — but selling a home is a big transaction to trust to luck.  Even best-case scenario, he’ll be a clueless lay person up against a professional, and in case of a conflict he’ll have no one to turn to.   I just terminated a contract with a FSBO seller.  I could give him some tips on how to respond to buyers in a way that doesn’t infuriate them, but he’s not paying for my advice. Too bad, it cost him a sale.
 
I figure people who are trying to beat the system are Difficult anyway.  I just wish them well and go work with people who appreciate what I know and what I do.
 
My two cents!
 
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Helping nice people get from where they are to where they want to be.

 

 

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Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Those TV shows make it look so simple, but it's not. Most FSBO's will agree when they can't sell their home. To me, the most important part to have an agent involved is AFTER you have a buyer signed up. That buyer, if he doesn't get the full disclosures, can come after him even after the sale.

Aug 20, 2016 11:00 PM
Dianne Goode

Hi Hella.  You're so right.  Sellers tend to be focused on the marketing phase, but what comes after the offer is much more complicated.

Aug 20, 2016 11:25 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

That's all we can do! You can't beat cheap by lowering your standards Dianne Goode

I found your excellent post ( I missed ) through Kathy Streib's What I Learned This Week At ActiveRain-August 14-August 20, 2016. 

Aug 20, 2016 11:04 PM
Dianne Goode

I am a long-time fan of Kathy's Sunday Summaries, and it's an honor to be on her list.  Thanks for stopping by!

Aug 20, 2016 11:26 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Competing to work for the person who absolutely does not value your service or respect what you do?  Yeah, not my cup of tea, either.    

Aug 20, 2016 11:39 PM
Dianne Goode

If you cut your price to get their business, you've forfeited  any claim to their respect.

Aug 21, 2016 01:42 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Dianne, we get what we pay for, in real estate and many other areas, being cheap actually costs more. Great post!

Aug 21, 2016 12:08 AM
Dianne Goode

Hi Beth.  I've basically learned to avoid the low bidder.  Pay a reasonable price and then you can reasonably expect to be happy with the result.

Aug 21, 2016 01:43 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

No kidding. Just one is in the better schools and cities that does not mean home values are shot through the roof.  After 6 years straight two digit inflactionary price increase few can afford homes.  But the seller wants more, I got a call he says he got a broker willing to do 2% both ways. 1%  to list and another 1% to coop.  It was off the market.  He called me again I ask what price he wants, he says a lot more than last time.  I declined again.

Aug 21, 2016 12:25 AM
Dianne Goode

Good call -- you just saved yourself a huge headache! 

Aug 21, 2016 01:45 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Another great post...I can see why Kathy chose to highlight it this week!

Aug 21, 2016 12:31 AM
Dianne Goode

Thanks, Kristin.  And thanks for stopping by.

Aug 21, 2016 01:45 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Dianne

Of this is much more than just 2 cents!! There is such wisdom in your words - there is always someone cheaper. And we all know you usually get what you pay for, right?! Glad to see this was featured by Kathy - well deserved.

Jeff

Aug 21, 2016 01:25 AM
Dianne Goode

It's liberating to realize there is always someone cheaper, and you don't have to compete on price.  Just say "I wish you well" and move on.

Aug 21, 2016 01:47 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Dianne - yes you are spot on.  If you get into the price game it will be a continuing downward spiral.

Aug 21, 2016 03:05 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Basically, you get what you pay for!

Aug 21, 2016 03:33 AM
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Hi Dianne. There will always be someone cheaper. True. But, you get what you pay for!

Aug 21, 2016 04:15 AM
Rene Fabre
ARFCO Media - Renton, WA
Practicing Philosophical Eclectic of the Arts

Great read Dianne Goode ... I agree, there's always somebody cheaper. I heed your advice, wish them well, and move on to enjoy the people I want to work with! Nicely done post!

Aug 21, 2016 05:02 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Diane, I do not prospect FSBO sellers because there is usually a reason for their initial choice to go the do-it-yourself route.  And they want to be in control.   There are sellers who respect professionalism and follow my advice.  They're the ones I want to work with.

Aug 21, 2016 10:18 AM
Dianne Goode

Yes, FSBO sellers are usually either trying to save the money and/or have issues giving control over to anyone else, even a professional.

Aug 22, 2016 02:17 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

It's true that those people looking for a cheaper way are difficult to work with. No loss there in my opinion!

Aug 22, 2016 01:28 AM
Dianne Goode

Exactly!  Go find someone who will appreciate what you do for them.

Aug 22, 2016 02:17 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

JUST sold a FSBO - had I been representing the Seller (and not the buyer, of course), the transaction would have netted him more money, more control & understanding of the process AND fewer repairs!   

Here's how I look at it - We have plenty of agents that only sell 1-5 houses in a year - things change, Contracts are modified and they often haven't a clue!  If LICENSED AGENTS with some experience under their belts can't get through the process without help from their BICs or their mentors, who on EARTH is going to 'help' a FSBO?  They'll tell you their attorney friends but, I've represented several RE attorneys who look to ME when it comes to the execution of their own Contracts!  

What is it that they say about fools and self-representation?!  He/She who represents him/herself has a fool for a client!!

Aug 22, 2016 01:41 AM
Dianne Goode

Hi Debe.  Except for those those who specialize in real estate closings, attorneys can be as clueless as anyone else when it comes to the nuances of the Offer to Purchase.  What they say about self-representation is pretty much correct -- and fools rush in!

Aug 22, 2016 02:21 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Another example of my #FSBO opinion/generalization... FAILED SALE BY OWNER!

Aug 22, 2016 02:51 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Dianne Goode - and this is one reason I love to work by referrals...

"  just wish them well and go work with people who appreciate what I know and what I do."

Aug 22, 2016 02:46 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Bargain stores, bargain agents. It makes me think of what I have always heard, you get what you pay for.

Aug 23, 2016 12:52 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dianne, my business model is not being the cheapest, my business model is being the most knowledgeable and most responsive Realtor...and yes clients appreciate it and are willing to pay for it, Endre

Aug 23, 2016 04:11 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I think you said it all when you said that people trying to beat the system are difficult anyway.  Amen!

Sep 03, 2016 08:28 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

 The deepest discount comes when there is no education, time, effort, money spent on marketing...Amen and Women.

Sep 04, 2016 10:24 PM