Whats Up With These Realtors

[Pirate]

So if not a professional, who do you recommend to price the property? Also, since most Realtors work off of commission of percentage of selling price, why do you say that the Realtor would be torn between "putting a price on it that could generate a commission?" In my opinion, Realtors would like the commission as much as a real seller would like to sell, and they are not getting paid anything if a property doesn't sell.

I would be happy to price it ... and buy it.

 

[SeaGrooving]

So if not a professional, who do you recommend to price the property? Also, since most Realtors work off of commission of percentage of selling price, why do you say that the Realtor would be torn between "putting a price on it that could generate a commission?" In my opinion, Realtors would like the commission as much as a real seller would like to sell, and they are not getting paid anything if a property doesn't sell.

Realtors make commissions only if the property sells, obviously. Hypothetically, if your property is priced at $500k, and that realtor's cut is 3% (usually negotiate less), then $15k goes to the listing agent/broker. Of that $15k, the agent will get a percentage from his/her broker, typically anywhere from 50--75% of that amount, or $7500--$11250 in this example. BUT, if $500k pricing does not get your property SOLD, then no one gets anything, obviously. However, if the realtor convinces you to lower to $450k, in order to get a deal, YOU are down another $50k, and the realtor's commissions is slightly lowered: 3% = $13.5k, with the agent getting between $6750--$10,125 using the same "cut", which is only $750--$1125 less than the amount they would have received IF your property sold at the higher price. The realtor fee is not dramatically lower, whereas your cut is $50k lower (exclusive of commissions).

Thus, the agent has much more incentive to get ANY deal, rather than have a property sit on the market and not sell due to being priced too high. Nearly every property I have ever sold, the realtor tried to get me to ask a lower price than I chose to list and sell it for. They want a deal to close, period. If that means they pass up a on a bigger commission, so be it. A bird in the hand, so to speak.

Bottom line is the market should tell you where to price your property. Look at similar properties in your area and see the closing prices of recent sales. Analyze where others are pricing similar properties, and IF you really want to get a deal, price it competitively. You will know as much as the "professional" if you do the research and see all similar listings and closing data.

 

[Smiling JOe]

Thus, the agent has much more incentive to get ANY deal, rather than have a property sit on the market and not sell due to being priced too high. Nearly every property I have ever sold, the realtor tried to get me to ask a lower price than I chose to list and sell it for. They want a deal to close, period. If that means they pass up a on a bigger commission, so be it. A bird in the hand, so to speak.

Bottom line is the market should tell you where to price your property. Look at similar properties in your area and see the closing prices of recent sales. Analyze where others are pricing similar properties, and IF you really want to get a deal, price it competitively. You will know as much as the "professional" if you do the research and see all similar listings and closing data.

Yes, the Realtor wants to sell the property he or she lists. Isn't that the plan when a listing is taken? Isn't that also the reason the seller wants to sell? That is what Realtors do. It isn't their job to list properties at prices they don't think will sell. Please do not hire a Realtor if you do not really want to sell your property, because we are not in the business to pass time. Our job is to sell.

It sounds like your answer to my question of who is to price your property is that the seller should price it. That worked a little bit from 2003-2005, but I haven't seen that work since the market slowed.

 

[Bobby J]

If I meet with a seller that tells me what to price at, I run. We like to sit them down and show the "Solds" within the last 3 months. The price can be found right there. I do not care about or look at actives (Actives= property currently on market not selling). Once the seller sees this they get a picture of what is really going on....

 

[Babyblue]

A lot of sellers are going broke trying to get rich.

 

[InletBchDweller]

Yes, the Realtor wants to sell the property he or she lists. Isn't that the plan when a listing is taken? Isn't that also the reason the seller wants to sell? That is what Realtors do. It isn't their job to list properties at prices they don't think will sell. Please do not hire a Realtor if you do not really want to sell your property, because we are not in the business to pass time. Our job is to sell.

It sounds like your answer to my question of who is to price your property is that the seller should price it. That worked a little bit from 2003-2005, but I haven't seen that work since the market slowed.

well said!:clap_1: :clap_1: :clap_1:

If I meet with a seller that tells me what to price at, I run. We like to sit them down and show the "Solds" within the last 3 months. The price can be found right there. I do not care about or look at actives (Actives= property currently on market not selling). Once the seller sees this they get a picture of what is really going on....

some just dont want to see the real picture and then bounce from realtor to realtor to realtor. You know we can not BIRTH A BUYER!!!

A lot of sellers are going broke trying to get rich.

For sure, some are still wanting to make mucho $$$, i have had several turn down good offers, I am like WTF? IT IS A FAIR OFFER, do you want to sell? or keep paying interest, dues, bills etc. On the mls there should be Active sellers and maybe sellers

 

[Smiling JOe]

I just started a new thread and posted the following, but it seems this thread would also be a place where it might fit:

I just saw a price change for a listed property, which had notes, "VERY MOTIVATED SELLER!! BRING ALL REASONABLE OFFERS!!" I bet you wouldn't think the seller was so motivated if you saw the price change. It increased from $497,500 to $685,000. :shock: That is a 37% increase in price. Motivated seller??? Makes me wonder what that means anymore. When everyone is motivated, no one is motivated. It is really disappointing to see the term, "motivated seller," losing its value. There are truly some motivated sellers. I will let the price, not the wording, "motivated seller," tell me if it the seller is motivated. Does that mean that a buyer can negotiate the price down to $497,500 and feel like they got a huge discount?

Personally, I think the house is a great buy at $500K, but even great buys are not selling like hotcakes right now.
Perhaps there is more to the story, like the property recently receiving a zoning change allowing greater density or something, which might change the value, but on the surface, it just doesn't make sense. If it didn't sell during the last 5 months, priced under $500K, I'm not sure that it will sell now for $685K. A few sellers are realistic in their pricing, but I still question so many of the people who have property listed.

 

[Smiling JOe]

On the mls there should be Active sellers and maybe sellers

I think you should send in that request to the MLS Committee for the CCRs (Change, Corrections & Requests). The Chairman would love that one, as would the entire Committee. Do it! You can email the request to Geoff at ECAR.

 

[InletBchDweller]

this is a crazy business,I just saw one where the person raised the land $100,000 but had in the mls notes that it is priced to sell....Realtors, please read your agent notes!!! (ok shelly ready for comments )

I just started a new thread and posted the following, but it seems this thread would also be a place where it might fit:

I just saw a price change for a listed property, which had notes, "VERY MOTIVATED SELLER!! BRING ALL REASONABLE OFFERS!!" I bet you wouldn't think the seller was so motivated if you saw the price change. It increased from $497,500 to $685,000. :shock: That is a 37% increase in price. Motivated seller??? Makes me wonder what that means anymore. Does that mean that if can negotiate the price down to $497,500 and feel like you got a huge discount?

Personally, I think the house is a great buy at $500K, but even great buys are not selling like hotcakes right now.
Perhaps there is more to the story, like the property recently receiving a zoning change allowing greater density or something, which might change the value, but on the surface, it just doesn't make sense. If it didn't sell during the last 5 months, priced under $500K, I'm not sure that it will sell now for $685K. A few sellers are realistic in their pricing, but I still question so many of the people who have property listed.

 

[Smiling JOe]

I almost forgot to include the last sentence in the notes on the property description for that property above. "Priced to sell."