Why (IMO) Using Input Only Agents is a Huge Mistake Many Sellers Make

By
Real Estate Broker/Owner with Waves Realty BK3246853

With the real estate market in many areas seeing a strong seller's advantage, many sellers feel they do not need a full service real estate broker. Some may opt for a limited service, input only agents.

Here are a few reasons this can be a big mistake:

1. The limited service agent will simply put the property in the MLS: They will not be responsible for negotiation. This leaves the seller to negotiate against a professional buyer's agent. I promise you nothing pleases me more when I am representing a buyer. I LOVE when the seller opts for a limited service agent. With my 30+ years of negotiation experience, my buyer will likely love the final results.

2. No frills photos: The limited service agent may help set up photos, but they will likely not help stage the home, give advice on potential updates, walk the property looking for inspection red flags or give advice on decluttering. 

3. No Open Houses: Limited service agents play a numbers game. If they list a bunch of homes, by process of elimination some will sell and they will get paid. I sell about 10% of my listings through open houses. Limited service agents do input, not sales. 

4. Limited service equals limited advertising: You pretty much get a sign, a lockbox and entry into the MLS. Advertising upgrades like 3D Video tours are extra (if even offered at all). Here on the Space Coast many of our buyers are moving from high tax states. They may be up north right now on a computer. The video walk through is invaluable for these buyers. 

5. Pricing mistakes: This I see a ton of! The limited service agent will usually send the seller a few comps, but will often list at whatever price the seller tells them (remember, this is a numbers game to them). The seller will put the home on the market. If the price is too high, the agent will ask them if they want to lower the price...if the price is too low, the buyer will get a deal they may not have deserved!

6. Inspection mistakes: Once the home sells, the buyers will do an inspection. The seller will be left to negotiate repairs with the buyer's agent. A seller will again be at a huge disadvantage, and may lose lots of dollars or worse yet, lose a solid deal because they refuse to do a needed repair. The seller could also open themselves up to a lawsuit or mediation if they say the wrong thing. 

Remember, the seller is going up against professional real estate negotiators. Many know every trick in the book to lower the price. The only important result is the end result. If you save $8000 in commission, but lose $20,000 in price reductions and poor negotiation, you lost money!

Posted by

 

Jeffrey DiMuria

Waves Realty
Broker/Owner
2018 Melbourne Ct, suite 206
Melbourne, FL 32901

Phone: 321.223.6253         

e-mail:  Jeff@WavesRealtyFL.com 

Comments (9)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, really glad our MLS outlawed input only.    BUT, was sure fun to negotiate with sellers versus another agent, as you said!   

Oct 01, 2021 01:45 PM
Jeffrey DiMuria 321.223.6253 Waves Realty

it is awful for sellers. Wish they would outlaw it here. They have no idea how easy they lose 20 or 30k

Oct 01, 2021 03:39 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jeffrey,

I have a friend in Georgia that is trying to sell her family home on 23 acres, and needs someone who will actually market it.  Some agents do just that put it on the MLS.  We are going to be meeting with her.  A

Oct 01, 2021 01:59 PM
Jeffrey DiMuria 321.223.6253 Waves Realty

Perfect. Sellers DESERVE full service. I understand some people think they know everything, but that is not the majority.

Oct 01, 2021 03:40 PM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Jeffrey- excellent information!  Many sellers believe that because the market favors them, they have no need for an agent. They don't understand just how much is involved in selling a home. Getting an offer is just the beginning. 

Oct 01, 2021 04:55 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Jeffrey - there is a clue when anything (especially when used as part of the 'hook' in encouraging real estate listing discounts) with the word "limited".   And that usually belongs in the limited satisfaction category.   

Oct 02, 2021 04:04 AM
Jeffrey DiMuria 321.223.6253 Waves Realty

Michael Jacobs I love that, I think we should start calling them Limited Satisfaction Brokers!!!

Oct 02, 2021 11:49 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Jeff... our MLS still allows these. They don't serve home sellers well. Sellers think they are saving a ton of money in commissions and then give it away in other ways because they are not being properly represented.

Oct 02, 2021 08:10 AM
Jeffrey DiMuria 321.223.6253 Waves Realty

Nina Hollander, Broker I could not agree with you more! It is a terrible practice IMO.

Oct 02, 2021 11:50 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I think that fully transparent and open communication on both sides needs to be a given o it's a no-go. 

Oct 03, 2021 09:49 PM
Jeffrey DiMuria 321.223.6253 Waves Realty

Agree Laura Cerrano. I think we often need to take a step back and look at our actions. Are we doing the "right" thing?

Oct 04, 2021 07:11 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Oh yeah . . . they get paid what they're worth . . . and sadly the sellers will often brag at how cool their agent is . . . uhhh, your agent knows NOTHING and does not help you at all!

Oct 06, 2021 07:57 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Prospective home sellers are in very good hands when they seek your professional real estate advice and assistance.

Oct 12, 2021 04:55 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, wonder if you could rally other agents into getting this outlawed?

Nov 08, 2021 06:29 AM