Who Wants to Pay Big Commissions? Part Two

Last week we talked about the implications of listing your home with a low priced real estate broker. We discussed how negotiating down the agent’s commission impacts your results. To review that blog, click on the archives button at the bottom right of this page and look for “Who Wants to Pay Big Commissions? Part 1” Now, let’s consider some steps that go into selling your home. First, ascertain the market. Is it a buyer’s market or a seller’s market? When people are getting full-price offers or they have buyers willing to out bid each other then you’re in the midst of a seller’s market. Those conditions don’t come around too often, but when they do you might sell your home right away no matter who lists it. A buyer’s market is more common and means there are plenty of homes for sale. The buyer can be picky and offer whatever they feel like for a house knowing that even if the offer’s rejected the home will still likely be on the market in another month in case they decide to offer more. In most places around the country we’re currently in a buyer’s market, so in order to sell your home picking the best real estate agent is even more critical.

Next step: Decide if you want to hire a listing company or a marketing company. Don’t know the difference? No problem. Here’s the scoop. A listing company is usually a discount brokerage firm that does nothing more than put a sign in the front yard and lists your home on the MLS and a few other real estate sites on the Web. A marketing company, on the other hand, creates a strategy to sell your home for the highest price in the shortest amount of time. This plan could include advertising in the company’s monthly magazine mailed out to thousands of people, advertising in local newspapers and on the Internet. Other options include ads in national magazines like the duPont REGISTRY™, a real estate broker open house, an agent’s physical tour, online virtual tour, customized brochures, and oh yes, the yard sign and MLS listing. Of course, not all customers need or want some of these more sophisticated marketing techniques so consider yourself an active participant in directing the marketing plan and budget.

Next week we’ll answer the question: What does a listing agent do to deserve that big commission? I would consider it a pleasure to represent you in your next real estate transaction. If you would like to speak with me regarding the sale or purchase of a home, please contact me at 303-522-1161 or dpolimino@fullerproperties.com. Take a moment and visit my listings by clicking on the button to the right labeled “Dan Polimino’s listings.”

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