| The best thing you can bring to a tough seller's | | | | yourself, and that your home will be on the |
| market is an open mind. | | | | market a very long time. You should also not be |
| As a seller today, think of your competition, if | | | | surprised if your home suffers several price |
| you decide to go it alone, there are thousands of | | | | reductions at the hands of an unmerciful market. |
| licensed Realtors in your area and they are all | | | | Don't be surprised also if and when people don't |
| gunning for the same buyers to buy their listings. | | | | schedule to see your home, and if they say away |
| Agents will stop at nothing to offer incentives | | | | in droves. Your house is on the market , but no |
| that have actual traction to get homes sold. | | | | one knows it, and your home is practically invisible. |
| Those incentives include rewarding the selling | | | | It is also in competition for many other perhaps |
| agent tickets to Hawaii, cash bonuses, or even (in | | | | similar homes that do have the benefit of |
| one case) a Porsche. | | | | marketing. |
| This just illustrates how hard it can actually be to | | | | - Full Service. The most common misconception |
| sell your home today. The end of the year is | | | | with this business model is that you are paying |
| especially tough for sellers because of the | | | | one agent a commission of your home sales price. |
| holidays. | | | | In fact it is typical that half of that commission is |
| In the market for a long haul - or avoiding the | | | | paid to the selling agent, while the other half is |
| market crawl? | | | | paid to the agent representing the buyer. The |
| If you are trying to sell in this market, the key is | | | | actual Realtor typically sees only a portion of the |
| to focus on the business model that best fits | | | | commission. Things like market share, technology, |
| your needs and motivation. Your motivation may | | | | training, and support go into an agent's decision |
| include a specific timeline or a required return on | | | | when choosing their broker. Your agent really acts |
| your property from a finance standpoint. I will | | | | like an employee for you in this case. In general, |
| provide you with a side-by-side comparison of all | | | | these agents work only on commission and that |
| of the Real Estate Sales business models. | | | | means that when the market is slow, so is their |
| - For Sale By Owner, (FSBO): This is the true | | | | income, and a paycheck is never a guarantee. |
| do-it-yourself to selling your home. Expect to | | | | - Variable Service, This usually an extension of |
| spend a significant amount of your time holding | | | | the full service model. The strategy here is that |
| open houses. Get geared up for Realtors and a | | | | the agent's commission could change based on |
| practically endless number of cold calls from them | | | | variables are in play in the specific transaction. If |
| trying to win your listing. You might even print up | | | | for instance the listing agent also provides the |
| some flyers and put out some advertising. The | | | | buyer, then they may provide a lower |
| Downside: You'll be competing for home buyers | | | | commission to the seller. Another typical scenario |
| against savvy agents who have the backing of | | | | is that a separate buyers agent provides the |
| billion-dollar companies and their marketing muscle. | | | | buyer and represents the buyer exclusively. In |
| You'll also be largely excluded from Realtors | | | | this case the buyer's agent is entitled to the |
| showing your home because it is not on the | | | | commission set by the listing broker before the |
| market as far as the MLS is concerned. The Real | | | | transaction and agreed by both parties. If the |
| Estate industry by and large sees you as a risky | | | | market says sluggish, a common trend is to |
| proposition since you have no licensing or | | | | provide a set of incentives to the buyer, and/or |
| insurance to guard the transaction if something | | | | the buyer's agent. Sometimes these incentives |
| goes wrong. | | | | can be quite dramatic in value or scope, and all of |
| - Pay (discount) Commission: Since the agents of | | | | this depends of course, on the motivation of the |
| these companies are members of the MLS | | | | seller. |
| (multiple listing service) you can expect that they | | | | You have to pick the business model that works |
| will list your home there. Don't expect any (or | | | | in your best interest. However, it is my |
| much) marketing besides that. The upside here is | | | | experience that when the market gets tough, |
| that you might actually be on the ball field with | | | | that it takes service to sell your home. Always |
| the rest of the real estate industry. You might | | | | ask for what benchmarks your agent can offer |
| have access to an agent to conduct the | | | | during the time your home is on the market. Ask |
| transaction for you because writing contracts is | | | | for results that will give you a good idea of the |
| no fun. Expect to do most of the advertising | | | | exposure your home is seeing within the market. |