Cape Coral Real Estate

You see it on the Internet and hear it on television, an increasing amount of noise about outrageous real estate commissions.

 The noise is coming, principally, from companies hoping to divert money from licensed agents into their own pockets, but, the nationwide average of a 6% commission does seem like a lot of money.

Most good agents actually earn very little on a per hour basis (there are many other hands dipping into that 6% and her ultimate net is probably closer to1 to 1.5%) and may return more than her commission to the seller in an increased sales price. The best agents certainly more than earn their commission, often as much after the sale as before it.

So, what does a good agent do? What should a seller expect from an agent in return for that commission?

1. An honest listing price.

Pricing is key, and a seller should expect expert advice from his agent. However, sellers dig their own grave when they invite several agents to compete for a listing, and expect each to come up with a suggested listing price. Agents often (rightly) view the competition as hinging on price and have resorted to bidding for the listing, assuming that the highest suggested price will snag the business.

You cant blame an agent for fudging the numbers a little to secure a listing, but since this is contrary to the sellers interests, he should level the field. The big relocation companies do not permit their sellers to discuss price when selecting an agent. When interview agents, question them about their experience, ideas, and references; do not mention price nor allow them to do so. Once an agent is picked on the basis of comfort level, energy, and ideas, then invite him to price the house.

At this point, you have the right to expect an honest evaluation of your home. This means well researched comps, i.e. selling prices (very recent ones) on similar homes in or near your neighborhood. Selling prices are readily available from newspapers, the county assessor, or any number of other places, but an agent can quickly provide this information and give valuable insight beyond the mere number. Yes, the house was the same size as yours and on a similar lot, but it had a brand new kitchen with granite countertops, a master bath to die for, and a water view. Or, Yeah, three bedrooms and two baths, but there was probably $10,000 needed to make it sanitary before a real human would move in.

An agent can also supply information on the competition, houses currently on the market in your price range. You cannot get this elsewhere without prowling open houses or posing as a buyer and scheduling home showings. The agent may also have inside information on the selling price of homes under contract even though this information is not yet a matter of public record. Never tell the agent what you expect to sell the home for nor your opion of value for the same reasons, you want an honest un biased evaluation.

Never use an appraisal to set the home price. Appraisal types are dozens and for different reasons. The results will vary depending on your credit history and amount owed on the loan. If you have equity built in and your credit is good, low risk for lender, high appraisal.

2. Straight talk about EVERYTHING.

An agents hardest job may be telling a seller the truth. Many sellers are outraged when they hear it, but if you are planning to hire the agent, prepare to welcome the bad news as well as the good.

The most painful truths are about odors, dirt, and clutter. An agent must fess up if that nice, cozy home smell is actually flattening buyers at the door, and then be willing to help identify and remove it. There was a perfectly lovely home for sale in my town. Where houses rarely lasted for the weekend, this one was for sale for over a year, listed with three different agents; the price reduced four or five times. The owners were desperate. They finally employed a totally unabashed older agent who told them that their home smelled awful and spent over two weeks tracking down the smell and hiring someone to eliminate it. There was immediate competitive bidding and the house sold near their original asking price. This was a good agent who more than earned her 6%.

If a house needs some basic maintenance, is cluttered, dirty, or smells, a good agent should not be afraid to tell the truth and help improve the situation.

3. Advice and Guidance

A good agent should be prepared to help the seller accent the positive and eliminate the rest. This does not mean that she should get down on her hands and knees to scrub away gunk that might stick buyers to the kitchen floor, or go through and throw away the 30 year collection of magazines and newspapers that are obstructing entry to the guest bedroom. It does mean, however, that she will have the names of people or businesses that will do this and more. A truly good agent has a truly wonderful Rolodex (ok, a Palm Pilot) with hundreds of contacts who run yard sales, wash windows, appraise antiques, and so forth.

Much is being made of the need to stage a home, there is even a new cable television show about it. Some agents are very good at staging, some even keep a garage full of furniture and accessories which they will haul in and use to stage. Don't count on this! Most agents are too busy to even stage their own homes, but they probably have the name of a good interior design person who specializes in homes for sale. Some will ask for a staging or home improvement budget and handle all of the arrangements (you just pay the bill.)

4. Access, feedback, and follow up

If a buyer can't see it, he can't buy it. An agent is responsible for guaranteeing access to each and every buyer with an interest in the home. Depending on your arrangement, you have a right to expect that the agent will either (a) put a lockbox on the house in a manner that guarantees both access and security; (b) make keys readily accessible in her office; or (c) be available at reasonable times and with adequate notice to admit buyers or other agents with buyers. If an agent agrees to accompany every showing, you have the right to expect that she will be available to do so or will arrange for another agent to replace her in the event of illness, vacation, or other occasions of unavailability.

This, incidentally, does not end with putting the house under contract. You should expect your agent to be available to admit and accompany all of the people who will want to enter your home  pest and structural inspectors, the appraiser, and the buyers who usually have a guaranteed right to several visits prior to closing.

An agent should keep in touch with you and keep you up to date. You might expect feedback after every showing (this annoys the hell out of cooperating agents), but your agent should report general information, particularly any negative comments on price or condition, particularly if these can be easily addressed.

5. Large R.E. company or small. Does it matter?

Large companies provide an image for you. Image is what many sellers go for. After all it sells you on the name.
Actually there may be many pitfalls to going with a large company.

1. Buyer calls may not go to your listing agent but rather to an agent earning a lower commission, a spouse, or a new agent. (Broker/owner profits)

2. You went through all the efforts to pick an agent and he does not get the calls meant for you.
The agent the call may go to has no incentive to sell your home over some 4,000 others.

3. Processing fees may be charged to you and the buyer which is around $600.00 (Broker/owner profits on top of commissions.)

4. Your home is lost in a crowd of hundreds of home s. “List them all and some will sell”

5. Agents profess to belong to groups or teams. What Is this?
It allows all agents in this team to take credit for sales they may have had nothing to do with. Even in totally different towns. The team leader gets the brunt of credit and an override on the sub agents.

6. In a large company, there is no incentive for agents to sell an in-house property. They search the MLS just like any other agent. Big or small.

7. A big misconception is that the large company has more assets to spend on advertising than the smaller firm. Actually the broker only spends this money so the phone rings and his secretary gives the call on your home to another agent or spouse.

8.What a smaller companies provide is usually much better. Why?

  1. Everyone knows the inventory and probably has seen the home.
  2. Calls are given directly to the agent.
  3. Agents usually man the phones not a secretary that works for the broker.
  4. The Broker/owner has more time to dedicate to viewing sales ratio and gives individual advice and training.
  5. Ideas like, "how to implement international marketing are shared.”
  6. In a smaller office there is more of a feeling of co-operation among agents rather than competition.
  7. Sales to listing ration is usually much higher.
  8. Over all you are much better off getting personal marketing, attention and serious concern about getting your home to sell.

Call me! Joseph Beauvais My company is smaller and prides itself in sales not listings.

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Call today! (239) 770-0686 Joseph Beauvais (Buyers Agent) to set up a time to view and buy any offerings.

My direct email; Jb@sunnyspotrealty.net 

Phone 239-770-0686

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