| A Home Sellers Service From CLHLLC |
SALES CENTER
DISCOUNT LISTING PROGRAMS
How a seller paid 2.5% rather than 5% and lost $50,000 doing it
This is an illustration of what can happen with discount real estate selling and brokerage services. Two similar homes in the same building. Home 'A' listed with regular full service firm for $450,000 at 5% commission. Home 'B' listed with a discount limited service firm for $440,000 at 2.5% commission.
Home 'A' sold for $435,000 in 60 days and seller paid $21,750 to broker, netting $414,250. Home 'B' had no visitors much less offers, and was reduced after 90 days to $420,000 and sold 120 days later for $390,000 and seller paid $9,750 to broker.
In the meantime, owners of Home 'B' paid double mortgage payments for 5 months, paying the mortgage and condo fees on Home 'B' of $3,000 a month totaling $15,000. They netted $390,000 minus $9,750 minus $15,000 equals $364,750. When Chris does a compare of $414,250 to $364,750 he says the owner of Home 'B' saved half off on the listing commission percentage and lost $49,500 doing it. Gosh, is this ever not a rare happening.
Some discount brokers even claim to offer full service
Chris asks you to please think twice when you get an offer to sell your home for 1%, 2%, or 3%, especially if it is accompanied by a claim of full service. Maybe you already learned about no free lunch. It could be that some of these agents are not truly interested in successfully selling your home for you.
Be on the look out for those infamous cookie cutter agents, and there five P's approach to selling your home.
- Pound a for sale sign in the front lawn.
- Put the listing into the MLS.
- Plan an open house for next Sunday.
- Place an advertisement in the classifieds.
- Pray that someone will drop in and buy it.
If your wife needs her tonsils removed, and one doctor charges $10,000 and another charges $3,500 then please go to the more expensive one, or it could be the worst $6,500 you ever saved.
GIVE “CHRIS” A CALL – LET’S DISCUSS HOME SELLING, AND START YOU ON THE ROAD TO A SUCCESSFUL HOME SALE
YOU CAN'T MISS WITH CHRIS Call him today! OK?
