February 12th, 2022 10:47 AM by Linda Holley
More people are listing their homes with companies charging a "flat fee." This means that Sellers pay a flat fee for a brokerage to put their home in MLS rather than paying a 3% commission to have their own listing agent. I love bringing buyers into these deals because most of the time the Sellers do not have a real estate background.
The flat-fee brokerage is available to advise the Sellers through the process. However, the Seller works directly with us, the Buyer's Realtor. How many times does the Seller stop to call their flat-fee brokerage with a list of questions? I haven't had a flat-fee Seller tell me, "I don't know. Let me check that out" or "I'll get back to you on that." The ones I have worked with shoot from the hip as they are trying to wear the real estate hat. I like to think of these do-it-yourself Sellers as shark bait. Trust me, I'm a Realtor and I know what it's like to swim with real estate sharks. They are the very definition of TOUGH.
If the Buyer is getting a mortgage, does the Seller keep up with the deadlines that are built into the contract that protect both parties? Does the Seller follow up with each potential Buyer who saw the home to get feedback? What is the appraisal comes in lower than the purchase price? What types of contracts are most beneficial? What are the responsibilities of the Seller and Buyer when buying a home that is part of a condominium or homeowners association?
In this type of listing, I've seen homes that are dirty and not ready to be shown; junk left in closets; curtain rods pulling out of the sheetrock and ugly curtains that belong in Goodwill; dirty windows, countertops, and appliances. I even saw a dirty pizza pan on the kitchen counter. Since the Sellers generally take their own pictures, the homes may not show well online. Today most Buyers shop online and then tell their Realtors what homes they want to see. The flat-fee listing company may not be local, so the home may not be priced correctly; many times the home is overpriced because the Seller is holding his or her breath for a miracle.
The majority of Realtors use Supra electronic lockboxes which do not open after hours or early in the morning. Realtors who pay $15 per month have Supra electronic lock box access, and the system records what time the lock box was opened, the time the key was returned after the showing--and WHO entered the home. I'm shocked to see combination locks on the front doors of residences that are available for anyone to open 24/7 with a 4-digit code, and there's no record of who opened the combo box. If the home is vacant, I could run back over without making an appointment with the Seller for whatever reason. But would I do that???
I once thought like these Sellers before I became a Realtor. I had an investment property in Seaside, Florida, when I lived in Atlanta. To sell my condo, I thought all I needed was a cell phone with an 850- area code so people who inquired about my property would think I was local. And I had one of those 4-digit combo lock boxes. Of course, the condo did not sell, and I missed out on an opportunity to get rid of it at a substantial profit before the bottom fell out of the real estate market in 2008.
Listing Agents are well worth the 3% commission we are paid. Having one on your side when you have so much to lose makes sense.
If you have questions about Sarasota real estate, call Linda Holley, Realtor, GRI, SRES, Fine Properties, at 941-914-4914. www.LindaHRealtor.com
My next blog today is about appraisals.
Linda
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