I am selling my house and need some opinions?

Question

My house has been on the market for 3 weeks now and only had 3 showings. I know the market is very slow and hope the interest rates drop. My agent told me that he had this idea. His idea is to raise the 6 percent to 8 and and that would get more showings. Meaning the buyers agent will make more money so he/she would work harder and get me more showings. Does that make sense? Why would I pay 8 percent? That is over 30,000 out of my pocket. thanks

Answer 1

If your house has only gotten 3 showings it has nothing to do with how much commission you are contracted or offering Realtors. Instead it is likely one of two things. Maybe the house is over priced and with so many other options from more realistic sellers, yours isn't worth considering. Or your Realtor hasn't properly marketed your property to get more people in the door. Have you had an open house yet? Are flyer's available to people passing by? Do you know where the agent has advertised? Remember you are the boss and may need to crack the whip behind your Realtor to get him to do his job properly. If the Realtor's only idea is to offer more money to him and a cooperating agent, perhaps you need another Realtor.

Answer 2

Raising the commission after only 3 weeks on the market is premature. Yes the buyer's agent will get more if you increase the commission but so will your listing agent.

Instead of raising the commission, has your agent done any marketing on your property? Has your agent implemented the marketing plan he/she proposed to you during the listing appointment? Its not just the buyer's agent who needs to work harder to bring in more buyers but its also your agent's job to make sure that the property is heavily marketed especially when the market is "slow".

Its true that a higher commission will attract more buyers agents, but instead of increasing the commision, you can offer a bonus to buyer's agent such as $2000 or $5000 for a full price offer. This alternative will be cheaper than increasing the commission by 2%.

Also, if you're in a hurry to sell, make sure your property is competitively priced, all minor repairs taken care of, and shows well.

Answer 3

Tell him you'll give him the extra 2% if he brings a buyer who closes within 60 days. Better yet, tell him to shift the split from 3/3 to 2/4. That way the buyer's agent still gets 4% and he can continue to suck his thumb for 2%. On a $1.5 million deal, he doesn't need to do much to hit paydirt. What's more, 3 showings in 3 weeks at that price point isn't all that bad in today's market.

Answer 4

Your agent is scamming you. The market here in Australia is very slow & interest rates will not drop but will go up after the election in November. The average time that a house is onthe market is 1 year.

Answer 5

Your realtor has a good idea. I've done that with slow moving properties in the past. But, talk to your realtor about the split of the commission. Insure that the extra money you spend on the commission ALL goes to the person who brings the buyer to the table. No extra 'free ride' for the listing agent.

The listing agent may change his/her tune if there is nothing extra in it for the listing agent. Your other option is to offer a set price 'selling bonus' to the agent who successfully brings you a qualified accepted offer by a certain date.

I've just read capellancf's post, and he/she is right on the money with his/her comments as well.

Wisconsin RE broker.

Answer 6

Your house has only been on the market for 3 weeks and already has had 3 showings!! You are doing great!! I would leave it at 6% for awhile, you are having showings. If the showings stop for a long period of time, then I would think about raising it to 8%. But, for not leave it along and be patient.

Answer 7

The code of ethics of the National Association of Realtors requires your agent to tell you how much is being offerred to the Buyer's Agent. If you have not been told this, the code of ethics says you have the right to know.

Your agent makes a point that an atypically small fee offerred to the buyer agent will discourage some buyer's agents from bringing buyers. Some buyer's agent know how to include the fee they require in the offer, but many agents acting as buyer agents these days do not, and simply accept (or are discouraged by) a low fee offerred from the listing agent. A higher fee also encourages many.

Some listings agents take listings at low rates...and specifically offer low rates to buyer's agents, in order to keep the listing from being shown by them. The seller thinks he negotiated a deal in his listing fee. But, his house does not get shown as much, keeping it in house for the listing agent to use to attract more business, and eventually probably sell in house and get both sides of the fee.

This is why the code of ethics says you have the right to know how much is being offerred to the buyer's agent, and how much the listing agent is wants to keep. It influences the marketability of the home.

So...know what amount your agent wants to keep, and the amount we wants to offer....the split does not have to be 50/50. To whom does he propose to give the suggested 2% increase?

I am an EBA. In my case, I show all properties regardless of fee, and adjust it at contract if it differs from the range I accept. That way my buyer sees all properties....that is what II think we all need to care about... service to our clients. . But some agents, will be discouraged if the fee is low.

John Herman www.BuyConnecticut.com

Answer 8

Yeah, I agree with you. It's all about money for them. I would just stay where you are. If it sells, it sells. Like you said, the market is very poor right now and I don't forsee it getting better any time soon myself. The thing is, is how bad do you want to move or sell? If you want to go, you may wind up doing what they want just to try to get rid of it. If you can stay, I'd stay and be patient. Some house's are on the market for alot longer than that. Good luck.