“Bring me a Buyer and I’ll pay you 3%”

June 9, 2012

 

My Colleague was surprised to learn…

I was speaking with a new agent in our office yesterday. We were discussing For Sale By Owner Listings.  He was surprised to learn that 99% of the time Sellers who are selling by owner will gladly pay 3% if an agent brings a Buyer.  It is the additional 3% for a listing agent to list and market the property that Sellers seek to avoid in selling by owner.

 

The question then becomes…

Is there value for a Seller in paying 6% for the full suite of services, marketing power  and personnel to manage logistics from an accomplished Miami real estate sales team?

 

These are 4 of the advantages for a Miami Seller in listing their home with a professional agent…

 

1)  Exposure to the Realtor Community and their Buyers…

Even with commission paid to Buyer’s agent, Seller’s home remains off the open market.  What I mean by this is that there are over 20,000 Realtors in Miami Dade County.  These realtors are motivated by commission.  By listing a property on the Miami MLS, the Seller’s property is now on the radar for all of those realtors  and their Buyers (most realtors are usually working with 5-10 Buyers at any given time).  Therefore, there is an exponential increase in Buyer demand when a property is listed on mls with professional grade photography.  This, in itself, is worth the additional 3% to market the property with a professional team (such as the ShowcaseMiami Team).

 

2)  More Competing Buyers…

When there are less Buyers exposed to the Miami for sale by owner property, these interested Buyers have less competition from other interested buyers.  This is to the Buyer’s advantage (not the Seller’s).  A Buyer in the for sale by owner scenario can make an offer less than asking price and wait with confidence that aggressive realtors won’t introduce their Buyers to the property and strike a deal.

 

3)  A Seller’s time is worth money.  

Over the course of a month, a Seller may have up to 20 showings of their property.

If one factors in an hour per showing (including drive time to and from the house from work), the cost in Seller’s time totals in the thousands of dollars.

 

4)  A listing agent acts as a buffer between Seller and Buyer.

Buyers when exposed directly to Sellers can discover a great deal about a Seller’s motivation based on the Seller’s answers and body language.

(i.e. why are you selling?  how soon do you have to be there?  Is there flexibility on the price?  How long has it been on the market?)

It is best to avoid this type of direct contact (if you are a Seller).  It is advantageous (if you are a Buyer).

 

Conclusion…

Even at 6% commission, a Seller nets more by listing with an expert Miami Listing Agent and that agent’s team than by offering  “3% if you bring me a Buyer”.

 

 

ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.

(Highest price in the Shortest period of time)

To discuss a strategy for your home, call…

Jason Smith

Broker (Seller Specialist)

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115

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