Well after running around a late afternoon I thought it would be best to hit the phones for a bit before calling it a day. So i was calling on some expired listings when i came across a client that had recently built and was planning a move to their retirement home far far away.
The Gentleman made it clear that he has already told a number of agents that have called before me that he and his wife had no interest in hiring a full service agent or paying 6%.
He also informed me that they were not the most motivated people and that they did not want to get locked into any kind of contract. But at the same time would rather move now instead of waiting for the market to rebound in their favor.
So dug a little deeper and found that they really did not understand that when you list all brokers work together.
He was pretty adamant about renewing for a Flat Fee, MLS only listing. So I better have a strong case if they were going to be convinced to list their home with me.
OK so here i am looking around for strong arguments on why full service is better, and not really finding anything i like. So the analytical part of me surfaced for a moment, and I decided to pulll the numbers from the flat fee broker in comparison to my own.
I found some very interesting things out.
Flat Fee broker listed close to 100 homes last year. 16 sold
So far so good, by listing with them you only have a 16% chance of selling.
90% of my listings sold last year.
OK lets go a little further of those home that sold the average price was $202k, with out anything selling for more than $300k. MR. & Mrs. Sellers home is $375k. the average selling price for Flat Fee broker was $193k So the Average list to sales price was 95.5%. Which is not too shabby when our local MLS stats that the average home sold for 95.2%. However the homes we sold...sold for on average of 98.7%.
And the real kicker was the Flat Fee agent they were listed with is no longer in the business.
So there in the numbers i found some great ammo to go in with:
If really want to sell...is listing with a Flat Fee broker and having a 16% chance good enough?
They don't sell homes like yours, and of the homes that do sell they sell for 94.6% less than listed price. So you do the work and the buyers save more money?
We sell homes like yours, when you list with us you have a 90% chance of selling, we are a full service brokerage that guarantees our service in writing and our listings sell for an average of 98.7% list to sales price.
Let's not even get into how most buyer's agent work on these sales. Most buyer's Agents do not want to work on these sales, since there is a no other agent involved to insure the deal will go through properly as well as the extra legal liability situation the agent is putting themselves in.
Long and short of it, at the very least most buyers and there agents know you are not paying that other percentage to have an agent represent you so, agents like myself usually advise the buyers to knock even more off the offer price. So again it's back to the seller trying to save money and the buyer usually ending up with the savings.
So I guess after the end of the day, if you just plain hate the idea of an agent working for you, and you want to do more work and expose your self to legal liabilities, and at the end of the day end up with the same amount or less than it would cost to hire an agent in the first place, than from these numbers going it alone might be for you.
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