Listing agent etiquette
Hi, I'm generally a fair person, but need some advice:
I bought my home from Agent A about 6 years ago; no sure that I was thrilled with the services, but she's a very nice lady and that counts for quite a bit with me.
I've been considering leaving PHL for a few years now, and finally have everything in order to do so. About six months ago, she took a look at my house to see what I needed to do to get it ready to be sold - more as a friendly-type thing than a formal process. She also said that she didn't think that I would get more than I paid for it, which isn't surprising, but obviously not welcome news. In discussing this with some neighbors, they said that they don't agree with her and that I should find a new realtor.
So here's my dilemna - is it fair of me to ask another agent to do a formal valuation of my home and if I like what they have to say, use them to list it? Or am I honor-bound to deal with the original agent, who did indeed give me informal advice? I don't know what is the norm, and just want to sell my casa for a fair price in as hassle free manner is possible (yep, I've got a few bottles of maalox at the ready since selling and buying is *never* easy).
i think you would be stupid to not interview several different agents.
Yeah, I agree with Toxigal. If you didn't sign a contract with the original agent, I think it would be pretty short-sighted to go with her out of a sense of loyalty, especially since you say you weren't thrilled with the service you received in the first place.
Yep def interview another agent or two, business is business! The agent who does the research and prints up all the comps etc. is the one you should consider hiring; the 6% cut (or 3% split in most cases) can amount to a substantial amount of money to be paying out so you may as well hire the best. Good luck with your sale.
Rule #1 -The nature of the real estate business is who can bring in the most clients to get you your best price. Look into Zillow.com for comps.
I could find myself in the same situation, having dealt with a realtor for several purchases. My neighbor's house is on the market for the 3rd time, asking $249K, bought for about 2003 for $189K, needs lots of work, despite the 'new' bath. The current asking price tells me that one large chain realtor is jacking up the price. I think your realtor is being honest but nothing says you have to start at that price. Up FMV by %15, and see what Spring does.
Comparing listing agreements will enlighten you on what to have, or not have, in your listing agreement. The key items are commission and term of the listing. My pet peeve to reduce their commission from 6% is that Philly's realtors allowed the City to increase the Transfer Fee from 2% to 5%. That extra 1.5% on my side will come out of any commission. Some people have placed caps in the commissions. i.e. $12-13-15,000
Trust and honesty are the intangibles in any agreement. I know many deals made with a handshake between 2 honest people. A contract simply documents what both parties thought they heard and agreed to, not a weapon of mass destruction.
Remember Rule #1, and do your homework. Good luck!
ANSWERS TO QUESTIONS
RE: Most clients - Every Open House I have attended has had a sign in log; ask to sample 5+ recent logs. Ask for their statistics on listed vs. sold prices, and time on the market; it includes the % change so we don't need to calculate. One area realtor sends us their statistics as a marketing tool. Go to other realtor's open houses to see what traffic exists, and how they market their open houses. 45 minute, 1 hour, 2 hours, signs & baloons on corners.
RE: - The change to 5% occurred years ago but still in recent time. If it has been changed, I am behind the times. The rest of the suburbs still collects 2%.
Last edited by Moonraker; 12-27-2010 at 07:16 PM.
Reason: Answers to questions from Juan and others.
Can you explain how one would identify the realtor that can bring the most clients?
Originally Posted by Moonraker
WHAT? When did that happen? That's ridiculous in this real estate climate!
Originally Posted by Moonraker
A nice Lady?
She gets paid to be nice.
No harm in shopping others...who may charge less of a percentage.
The value is relative.....but you only need one buyer!
I would definitely interview at least 3 agents, but it's not always smartest to go with whatever agent tells you that they will get the most money for you.
You must look at the facts, and you must look at which agent/team provides the most value when it comes to service and exposure.
I know agents who go into listing appointments, overvalue the home just to get the listing. Then they keep pushing for reductions until it's priced right. This is a losing situation for the seller, because in most cases they end up getting less money than they could have if it was priced right from the start.
Check out our website, and let me know if you would be interested in having out team take look at your home.
Last edited by AaronKW; 12-27-2010 at 09:54 PM.
It cracks me up (not) how RE agents transform into electricians and carpenters, and even hold sway with
If you disagree with a realty agent you risk being thrown under the bus per referrals, or flat out bad review of
your house by same agent.
I'd say the best approach is to compile your sales proposal in writing, and then see who will help per your specs.
To respond to your post. Yes I would interview different agents, however please do not go with someone who says they will list your house at the highest price and for a discounted marketing fee. Go with the agent who you feel more comfortable with and presents you with the best marketing plan. This is a business transaction and in the end money is the bottom line but if your house is priced too high it will never sell until price reductions start happening. Buyers are being very picky right now and over pricing will hurt. In my opinion the one crucial thing is choosing and agent you are more comfortable with and will be honest(brutally if need be) and not sugarcoat it.
PS: Where is the transfer tax 5%? In the city it is 4% 2 from the seller and 2 from the buyer.
My neighborhood at one time was strictly residential back when they were built in the later 1800's. Little by little it
transformed to commercial/office with new additions such as a large recording studio, a modeling agency, and the
expansion of a long-time concrete materials co.
Some of the houses are still here, yet it is not a block best suited for a family. The zoning was Hvy Indust / Resid
and was recently changed to RDD ~ riverfront development district. Yet inexperienced agents still market the
houses ( 6 on the whole block and dispersed ) as for families, rather than for professional.
So why prepare a house for a family, when it should become an office or storefront, with living quarters upstairs?
This type of buyer probably is not concerned with a new kitchen or finished basement, as they may gut the place
I'd love to hear realtors add to this. While I believe that a good realtor is both hard to find AND worthwhile, I am just not sure looking at sample logs from open houses reveals anything. (I used a discount agent ONCE and got exactly what I paid for - maybe less. They were TERRIBLE)
Originally Posted by Moonraker
1) I've seen (in person) those logs inflated with fake names or relatives or neighbors who just stopped by to check the place out, out of curiosity, but were not really in the market for a new house.
2) Possibly getting a legitimate lead to a potential buyer at an open house, doesn't automatically turn that same person into a buyer who has agreed to use your services for their house search.
As to listed vs sold price and time on the market, I've been told both are unreliable. Here's why - A house may be originally listed for 6 months in 1/09 for say 300k. Couldn't that same property have be renewed/relisted multiple times at lower prices before it sells? Lets say it relists in 7/10 for 200k and sells that day for $200k. Wouldn't the time on the market then be 1 day and also show that it sold for 100% of asking price?
Last edited by Juan; 12-29-2010 at 10:39 AM.
I interviewed 6 to 8 agents when I was selling.
I gave each a tour and as we walked through I asked them to tell me what needed fixing/improving.
Then we sat down and talked about what they would do to market my house.
Not only was I able to rank the agents but it gave me an idea of the range of value in my home.
The interview process was a pain but it really paid off.
In the end we got 99% of our asking price and were able to pick the closing date.
We went with Brooke, who is on the board.
If you dont let her come over and talk about selling your house I think that would be a big mistake.
Now that is a come true fairy tale.
Originally Posted by Tenzo
Have an address and time frame to confirm?
He's got about 50 PhillyBloggers who can confirm -- we electronically lived through the process with him. :-)
Originally Posted by Braveheart
What ShoshTrvls said regarding Tenzo! That house was beautiful BTW.
Originally Posted by ShoshTrvls
Well, I'm not even in Philly right now so I have no reason to lie to you.
Originally Posted by Braveheart
I'm actually on the board checking some info on the place because I left $$$'s in escrow.
But here it is in Zillow:
2729 Parrish St # 33, Philadelphia, PA 19130 - Zillow
You can check the BRT to see that it was listed for $749K and sold for $741K.
Bought it for $650K four years before that. So I think my agent rocks.
(Brooke was working with someone else, but I can't remember his name. Thin guy with red hair, drives a pastel colored Prius. <wink><wink>)
But certainly don't take my word for anything. But I'd suggest taking my advice on interviewing agents.
Thanks. We miss it.
Originally Posted by Alley
(and our friends. But I'll never admit that on THIS board)
we lived right down the street from that place...it does look like a sweet house. that price is also why we couldn't afford to buy in Fairmount.
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