Common Seller Traps
Dated: February 22 2019
Highest Bidder Every Seller would like to get the most money possible when selling their property. However, marketing your home with an agent simply because they say they'll list your property for the highest price may very possibly result in a negative outcome for you.
Shop Worn - Word's out that property is overpriced and Sellers aren't realistic.
Sells Competition- Your high price is shown to confirm that similar homes are better buys.
Doesn't Sell- Buyers feel Sellers won't consider a reasonable offer and purchase elsewhere.
Personal Friends or Family Members Many Sellers feel pressured into listing their homes with friends or family members who are licensed. This may not be beneficial to the Seller. "I Want to Do Them a Favor"- Will your friend/family take your business for granted assuming that they can get away with doing less for you?
"Don't Mix Business with Pleasure"- - Are you comfortable with your friend/family knowing so much of your personal business; how much you paid for and owe on your home; existing equity lines, second mortgages, etc.?
"What If You're Not Happy With Their Performance?"- Are you prepared to fire them and how will that affect your friendship? How valuable is your relationship with them?
For Sale By Owner Wouldn't it be nice to sell your home without paying any commission? Why, then do 95% of Sellers who have tried to sell their properties themselves end up selling their homes through full-service real estate brokerages?
Only 5% Nationally are Successful- Statistics show that selling your property yourself normally does not result in a sale. Open House and newspaper ads may attract lookers and curiosity seekers but rarely generate a buyers.
Buyer Wants to Save the Same Commission - Buyers immediately take off 6-8% and then reduce that price by 10-20% because they assume they can take advantage of the Seller on his/her own. Studies show that Sellers actually net 8% more if sold through a real estate broker.
Lowest Commission Almost all Sellers have at some point contemplated listing their property with an agent that lowers their fee or charges a flat fee in return for entering their property information in the MLS system. However, consider as a rule, "You get what you pay for" and the fact that the mass majority of Sellers don't list in this manner.
Fewer Showings - Realtors® often won't show properties where the commission is not comparable competition or properties where they have to perform the work of both selling and listing agents but only earn their fee for half of the services performed.
The 4P's of Real Estate- Agent Puts up a sign, Puts it in MLS, Puts an ad in the paper, and Prays that some other agent sells it.
Unsatisfactory Service- Exposure produces more prospective buyers; every time a commission is lowered, advertising and services proved diminish. Thus, exposure is diminished.
Poor Negotiating Skills- If the agent cannot protect his/her own commission, how can we expect them to protect our price?
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