January 31st, 2023 1:18 PM by Linda Holley
Today there were 344 price decreases posted in our MLS system (see chart below). Sellers who list their homes with unrealistic expectations are missing out on buyer's agents who watch for new listings that are priced right. They may not waste their time showing an overpriced property and then spend days haggling with the sellers to bring the price down.
Some agents are also reluctant to show a property that's been on the market for months. In our minds, we think that something may be wrong. Perhaps the property has issues or wasn't ready to put on the market.
I recently showed a property that is SERIOUSLY priced above comparable properties. A new listing agent (obviously) made the mistake of pricing a large model in a community by price/sq ft of a smaller unit in that subdivision. Can't do it. Every floor plan is different and to use the old cliche, "can't compare apples to oranges." The price has already been reduced and needs to come down another $100K.
And then there are the sellers who are offering the buyer's agent 2% commission. We are taught in "Real Estate 101" that there is no standard commission and there's not. We don't fix prices, everything's negotiable. Some brokerages charge 5% commission to list the property, others charge 6-8%. Some agents can set their own commission. My company allows me to do that. The companies that charge 6% and boutique brokerages that charge 7% or more - give 3%, 4%, or 5% commission to the buyer's agent. We like that a lot and we'll definitely try to get that home sold for you.
Realtors work hard. We make the job look easy but it's not. This business is costly in terms of our real estate brokerage fees, MLS and Board fees, marketing, gas, clothing, leasing our luxury cars, resoling our shoes, and teeth whitening products. But we see a Seller offering a bonus or commission of 3-5% for the buyer's agent, we're all over it trying to get it under contract.
So, sellers who are overpricing your homes...perhaps these tips may help you sell your home quickly.
Call Linda Holley, GRI, SRES, 941-914-4914, Fine Properties, for your real estate needs in Sarasota and Manatee Counties.
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