MAIN POINTS for Sellers

In a market analysis, there are usually examples of properties that were on the market for a long time or had price reductions, etc., and a wide variation in prices for what may seem to be fairly similar properties. The problem may have been in pricing, poor showing due to property condition or housekeeping and clutter, lack of aggressive marketing, or difficulty of access - or a combination. I encourage you to consider all these things before you make a decision about who to list with, what price, and what work you are willing to do in preparation.

Price is very important.
If it’s too low: You’re giving away money.
If it’s too high:
   There will be fewer showings
   A lot of the showings will be to make something else look good by comparison.
   Sale will take longer.
   Price may eventually be reduced, but agents may remember it as “overpriced”.
   Length of time on market bothers buyers and selling agents in a hot market.
Even if it does  for higher price, there may be appraisal problems after you think it’s “done.”

Some agents do what we call “buying a listing” - suspecting they’re giving too high a price and assuming they’ll have to talk the seller into a lower price eventually. (Sometimes, we’re honestly optimistic and marketing proves we were too optimistic, but that’s different from deliberately overpricing.

The listing agent on an overpriced listing is also getting buyers who don’t want that listing, to whom he can sell some other property, so there’s not a great incentive sometimes to get one sold. You need an agent you can trust to do her best at the difficult job of pricing and marketing your property rather than using your listing to get other business.

Condition:

Buyers often don’t have much imagination, and often don’t have much money left after purchase, so unless large-scale renovation is anticipated, they usually prefer to get a property that is already comfortable and ready to enjoy. If work is needed, they typically expect it to cost more than it would and the negotiation reflects that. Whatever doesn’t get done before marketing may have to be addressed anyway after building inspection.

Accessibility:

My listings are always on lockbox with keys that work easily, and with security system off if possible. My listings are always in MLS with as simple showing instructions as possible.

Service and availability are crucial.

I’ve been full-time agent for over twenty-five years, have many professional designations and awards, and know what I’m doing. It’s very difficult for part-time agents or novices to work adequately in this market.

I don’t take a lot of listings or work with a lot of buyers at any one time because I feel strongly about the need to work hard for my clients and to be available whenever I’m needed.

Networking gets results.

Having been a respected agent for many years, other agents know I’m good to work with - I do my share, I’m honest, I’m available and cooperative. That helps my buyers and sellers.

I advertise my listings widely among other agents in addition to advertising to buyers. More important than whether I sell it or some other agent does is that the more agents who know about it and show it, the better your chances of getting multiple offers, or at least one really good, quick one. (Agent luncheon, mailings, e-mail, cooperation at open houses, etc.)

Loyalty.

If someone comes to me wanting a property similar to one I have listed, I try hard to sell the listing, but I do not represent that buyer. They appreciate the honesty and integrity of staying faithful to the first client. (Similarly, if I’m working for a buyer and someone wants to list a property that might be suitable, I show it as “FSBO” before I list the property so that I can be faithful to my first client.)

Fees:

As usual, “you get what you pay for.” Fees are typically split between the agent and the company, and between the listing and selling broker. If a listing agent charges very little, consider what his share of the commission is and judge how much advertising he can afford to do and make a little profit. If a listing agent offers a lower fee to selling agents, consider whether they’ll be more likely to encourage buyers toward other properties.

In situations where a listing agent makes only a small fee for selling his own listing, be aware that there could be a temptation to sell other properties to buyers who respond - he would get a higher fee for selling something else than his own listing. And you want someone who has enough to gain by getting a good price for yours that there’s no temptation to just get it over with by urging you to list for a low price or to accept an offer than might not be good for you.

In addition, consider that if an agent can’t negotiate to protect his own interest, why would you think the agent would be able to protect yours!