The reality or real estate is very expensive if you do not understand what is all about! Too many buyers and sellers for the past few years thought there was nothing more to sellinga home than filling in the blanks of a contract. They made major mistakes! Buyers over paid for homes and sellers over priced them! The assumption was to save that a commission and negotiate it off the top of the price. Greed ruled the day! Buyers and sellers wanted more in their pockets than the agents, and their dream came true, only now they are realizing it was a nightmare! Sellers went to companies that just entered a listing in the MLS for a flat fee and they were the talk of the town. But today things are very different. Persons call me that I cannot assist, because they brought the wrong home and over paid for it. I cannot help the fact the home is staged and looks great if it is overpriced by 300K and will not appraise ever, nor will it ever sell! I also cannot help the fact that it is under power-lines and backs to a busy street where the roads are widening. There is a price to pay for buying without representation and selling by just entering a home in the computer..
Many home sellers are now waking up too the fact that the flat fee listing company is doing nothing to sell their home. They have no persons buy their home in spite of them paying a flat fee broker and up-front fee. He promised to save them 12K in commissions, but the home is now sitting on the market for a year now, and they just found out it isn't even listed in the MLS! So lets add up the 12 months of mortgage payments...did the seller really save 12K? Or did they blow it on mortgage payments and no sale?
So now the sellers are understanding that these flat fee brokers get their money up front. Under this business model...it does not matter if one home ever sells. Their model is based on cash! They do not have to wait to sell a home to get a commission! If they list 100 homes with a base fee of $3999 they just made close to 400K for doing nothing! The recession isn't hurting them! It does not matter if anything ever sells, it is already money in the bank! For those that list homes in the MLS they did not advise the sellers that they have a 33% success rate for selling homes, while the other 70% expire without a sale!
The fact is that buyers and home sellers the reason they hire an expert with a lot of experience to assist them is so they do not make a costly mistake. They hire the best qualified agent to represent their interests only and advise them. A cheap agent listing, or an agent that rebates commission is not the substitute! Buyers and sellers need to wake up to the fact that there is indeed a price on employing less qualified agents to assist them. Experienced real estate agents with a long track record of results, and testimonials that back up what they say - can best assist buyers and sellers accomplish their real estate objectives. Results are the measure of performance not empty promises or rebates!
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