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