| We all are inundated daily by postcards and | | | | strategies that will get buyers. They just |
| advertisements offering to sell our homes for | | | | list your property in a bunch of ads, and |
| what discount brokers call a 2% Total Listing | | | | hope that someone will find it and call. |
| Commission. The ads you see with the 2% | | | | |
| listing are similar to the 1% Payment Rate | | | | The Listing Reports and Your Approval |
| ads you see for Mortgage Loans. The ad that | | | | |
| is showing a 2% listing is merely what is | | | | If your broker or agent does not offer you |
| called a teaser rate, which is supposed to | | | | listing reports, make sure you ask to see a |
| get you to call the Broker or Agent. After | | | | copy of the listing. But, remember to ask to |
| you call, their goal will be to request that | | | | see how it is in the MLS, and not just the |
| they come to your home and offer you a | | | | customer report, that way you are getting the |
| presentation which includes an analysis of | | | | full listing report. Many of the |
| what the value of your home is. Also during | | | | inexperienced brokers and agents will put |
| this presentation, they will try to make you | | | | wording in the listing without your consent, |
| believe that they were completely honest | | | | that way they can get more from buyers' |
| about the 2% "Listing" free. After that, they | | | | agents. Make sure you explain to the broker |
| will persuade you to market your home on the | | | | or agent that you must approve the language |
| Multiple Listing Service (MLS), so that other | | | | they used for your listing. Many common words |
| agents and brokers in your area can view your | | | | and phrases that are used in marketing |
| property. The property will also be displayed | | | | include: "Bring All Offers," "Reduced for |
| on That way, anyone with an internet | | | | Quick Sale," "Motivated Seller," etc. Unless |
| connection will be able to view your home. | | | | you are desperate to get your property sold, |
| But, the broker will make a case for offering | | | | you will not need those phrases in your |
| competitive rates that can land your home on | | | | listing. |
| MLS and bring you more buyers. | | | | |
| | | | Contract and Commission |
| Now all you have to do is figure out a | | | | |
| percentage to offer the buyers agent. Surely, | | | | It is assumed that if the property includes |
| the more that is offered to the agent, the | | | | an "Under Contract" sign on it, then the |
| harder the agent will push the buyer to buy | | | | property has already been sold. Remember that |
| your property. For example, let us say that | | | | just because that sign on it, that does not |
| the agent has persuaded you to make the | | | | mean that the property as been sold. A |
| buyers agent rate at 3%. With the 2% Listing | | | | property cannot be sold until the contract is |
| Commission, your total listing fee is at 5%. | | | | closed. Sometimes, the homeowner still has |
| Not much of a discount, right? Many have | | | | not received anything near the offer that the |
| nicknamed this the "bait and switch" | | | | homeowner wanted. As a consumer, you will not |
| marketing plan. For all brokers, this is not | | | | see that because you do not have direct |
| true. But, the bad brokers make the good | | | | access to MLS. This strategy is very |
| brokers look bad. Remember that the discount | | | | unprofessional, and is meant to fool possible |
| brokers/agents are working mainly to get | | | | sellers into paying more than the legitimate |
| listings. The whole marketing plan that they | | | | price because they will think the property is |
| have revolves around getting the maximum | | | | ready to be sold. |
| number of listings that they can. One of the | | | | |
| strategies used is to give you a low listing | | | | Before you sign the listing agreement, it is |
| price so that they can get a quick sale. But | | | | important that a broker or agent provides you |
| really, they are doing this so that they can | | | | with a written marketing plan so that you can |
| get paid quicker, which means less time to | | | | see there marketing plan. Another important |
| work hard for the sale. | | | | thing to look out for is to make sure that |
| | | | there is no cancellation fee with the broker |
| There are also those who will persuade you | | | | or agent if they do not prove to you that |
| that they will give you the highest price of | | | | they are trying their very hardest to sell |
| your home, which is even above the market. | | | | your property. It is important to know that |
| Most of the time, they are going to make you | | | | you should not owe anything to the broker or |
| sign a long term agreement, so later on the | | | | agent if you do not get the results that you |
| home will eventually sell at the market | | | | wanted to see. You should only pay commission |
| price. Remember that there is no possible way | | | | after you get the desired results. |
| that they can market your home regularly for | | | | |
| one whole year at only 2%. They will not | | | | The best approach to sell your home is with |
| spend $12,000 on the marketing cost for your | | | | an effective marketing plan backed by |
| home over the duration of 1 year just for a | | | | expertise in the market and staffs of agents |
| $10,000 commission. Most of the discount | | | | to attend your specific needs. |
| brokers do not even have effective marketing | | | | |