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We're about to list our home with a realtor. We just don't have the time to show it ourselves on weekends. Given the market and the fact that we need to have the home sold by the end of the year (as we're building a new house), I want the listing agreement to accomplish two things.
1) to give us the ability to terminate after 90 days if the realtor isn't performing to our expectations. I know I could just write a 90 day agreement, but most want 180 days, and I think that's reasonable given that they have to market the home and incur costs. However, how do I get "an out" if they are not performing to our expectations?
2) I want to motivate the person who sells the house, not the listing agent. I've listed it on MLS myself, developed the website, etc., so the value to me is with the sales agent. Most 6% agreements are evenly split between the listing and selling agent. Do you think it would be better if I wrote the agreement for only 1 1/2% or 2% to go to the listing agent, with the balance to the selling agent?
I would get the marketing plan in writing as well as every other detail. The realtors are all gung ho to get the listing and then unfortunately there are some out there just to list and not to sell. Even something as basic as how you will communicate, phone, email, etc. Once a week to check in, w/in 24 hr's of a showing.
I would also give a higher commission to the selling/broker rather than the listing broker.
Don't dis-incentive the listing broker - your agent.
The MLS and a website are a few tools in the great toolbox of a Realtor. It's how you handle the different agendas, issues, challenges, etc the get you to the closing table.
If you give the selling agent more maybe they are desperate, they may try to roll over on you, maybe showing off for their buyer, maybe for the fun of it. And because you didn't choose an agent to advocate for you...you loose more than the 1 or 2% that would have bought you the best representation available...
There is a local real estate attorney here, who has received 3 consultations from my recomendation this year (these are with the other side) and this last time, when the other party mentioned my name as the other broker - this guy called me and told me to quit sending stuff his way...he's not in it for the $200/hr consultation fee - he needs to earn a living here. Meaning - I saved my client the hassle of an arbitration or worse a lawsuit.
We're about to list our home with a realtor. We just don't have the time to show it ourselves on weekends. Given the market and the fact that we need to have the home sold by the end of the year (as we're building a new house), I want the listing agreement to accomplish two things.
1) to give us the ability to terminate after 90 days if the realtor isn't performing to our expectations. I know I could just write a 90 day agreement, but most want 180 days, and I think that's reasonable given that they have to market the home and incur costs. However, how do I get "an out" if they are not performing to our expectations?
2) I want to motivate the person who sells the house, not the listing agent. I've listed it on MLS myself, developed the website, etc., so the value to me is with the sales agent. Most 6% agreements are evenly split between the listing and selling agent. Do you think it would be better if I wrote the agreement for only 1 1/2% or 2% to go to the listing agent, with the balance to the selling agent?
Thanks for your professional opinion on this.
how did you list it on MLS without some kind of representation already? Only agents have access to the MLS...
You should be able to cancel/withdraw your listing due to non-performance issues. I always offer that on my listings.
i agree, don't bite yourself in the nose by de-incentivizing YOUR Agent. If they don't make enough money they can't do your advertising, and in this market, you need more that a website. Anyone can stick a website up. It is the marketing to drive the folks to your website that make a difference. How do folks in California moving into your area know it exists. Marketing costs money. Period.
As far as the original posters question I have to offer this as a non professional and a homeowner that has bought and sold 8 homes. Please do not try to buck the local system as far as commission, etc. You want everyone involved in your transaction to be happy; your agent, their agent, etc. If someone has a chip on their shoulder (that you may never know about) they simply are most likely not going to be protecting your best interests fully. If you want to offer a special incentive beyond the commission do so. But I would suggest something like "I am offering a $1000.00 bonus if an offer is brought to me by X date, to be shared by both agents involved." This motivates ALL parties. Keep in mind though that it just takes the one certain buyer at the right time and your house in the right condition and price for that buyer.
Shelly - I wanted to let you know that I have been approached to list my home on the MLS by a listing agency that is on the internet. It is a flat fee to get it on the MLS and then I would do all the work. So, yes, technically an agent gets it on the MLS, but it is for a very nominal fee. These realtors that pimp themselves out this way sure aren't worth much in my mind. A good realtor is worth their weight in gold!
As far as the original posters question I have to offer this as a non professional and a homeowner that has bought and sold 8 homes. Please do not try to buck the local system as far as commission, etc. You want everyone involved in your transaction to be happy; your agent, their agent, etc. If someone has a chip on their shoulder (that you may never know about) they simply are most likely not going to be protecting your best interests fully. If you want to offer a special incentive beyond the commission do so. But I would suggest something like "I am offering a $1000.00 bonus if an offer is brought to me by X date, to be shared by both agents involved." This motivates ALL parties. Keep in mind though that it just takes the one certain buyer at the right time and your house in the right condition and price for that buyer.
Shelly - I wanted to let you know that I have been approached to list my home on the MLS by a listing agency that is on the internet. It is a flat fee to get it on the MLS and then I would do all the work. So, yes, technically an agent gets it on the MLS, but it is for a very nominal fee. These realtors that pimp themselves out this way sure aren't worth much in my mind. A good realtor is worth their weight in gold!
Take it easy everyone.
SmokeyMtnGal,
You said it best. Shelly...if you check out forsalebyowner.com you will find that they offer that service now. They usually use on local broker and put them up that way. They have a very high rate of expiration. Not very good, I couldn't tel you how many times I've gotten calls from those seller asking me to "co-broke" with them. I feel bad for them as they are sold on something that for the most part doesn't work because they still need to take care of the marketing.
With the type of market that appears to be upon us, hopefully that will slowly be less used (it will never go away).
Make sure that the bonus is for an accepted offer that brings the transaction to close....with the way deals are falling apart nowadays.
Yes, I agree. I also would add that I would be inclined to have a start and end date on the bonus offer; payable at closing. You can always offer an extension on your bonus offer if you happen to be in negotiations.
After 10 homes and the 11th on the market I have found that incentives are not always effective, PRICE is what sells a house fast. An agent incentive can be a good tool (not fair to the buyer IMO) but you need to look at what incentives others are giving to the buyers like money towards closing,flooring credits,landscaping etc. We also do realtor showings with a drawing for a decent prize to who ever shows up and looks. I don't really think that an extra 1k would make a realtor bee line to your house, it seems to me that if the realtor previewed it, had a client that was in that market the realtor would show it and make the full commission since that is what they are in business to do.
In my current market that has a rather large inventory I'm giving the buyers ski passes and gift certificates for equipment. I spoke with my realtor about a incentive for the agents and it was his feeling that if I did that he would disclose it to the buyer (if he was the agent) and it should be given to the buyer as a discount since they are paying it in the end after all.
I had thought of a vacation to a warmer climate for a week as an incentive since it gets cold here for a while but will wait to do that untill later in the game.....
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