I want to tell you a secret.
You’re not going to hear this from other real estate agents. If you know this, it can make you a lot of money. It can equip you to make better decisions.
What’s the secret? Buyer markets and seller markets really dictate the home sale.
Where’s the market balance?
The National Association of Realtors has said that a balanced market is six months. This means that if your home is listed for 180 days, neither the seller nor buyer has the advantage. However, if it sells before 180 days, the seller is winning. If it’s after 180 days, then the buyer is winning.
What drives the sale?
Does the listing agent actually move the sale of the house, or is the market really driving the value and sale? Even though most real estate agents base their commission on the value of the homes, the listing agent is rarely in a position to actually sell the house. Almost always, the sale is market driven as the type of market is going to drive the sale of the home.
Who’s the seller?
There’s more. I’ve been in the business for 18 years; we’ve done over 1,500 transactions for over $500 million in sales. What I’ve seen is that, typically, the buyer’s agent is showing and tangibly “selling” the house. The listing agent usually has very few opportunities to actually sell the house. The buyer’s agent is the one who brings the buyer, unlocks the door, and walks through the house without the seller’s agent there.
Why the commission?
Why would you pay a commission in a seller’s market to the seller’s agent, the? On top of it all, the sale is heavily market driven. All home values are determined by what a buyer will pay for the property and what the seller accepts. In essence, the buyer and seller are coming together and saying yes.
What about a flat fee?
If you want to hang onto your equity and preserve your wealth in such a market, negotiate a flat fee for your agent as you understand that they may not be driving the sale of the house. It may have more to do with market conditions, what the willing and able buyer has said, and what the buyer’s agent has done to promote the house. If you’re selling your house, in a seller’s market, and things are selling in less than a hundred days, a flat fee may be your best solution.
What about Scout?
At Scout, we offer a flat fee starting at $5,000. This $5,000 is full-service because we understand that we are sellers in a sellers’ market. Since our sellers are winning, we want to position you to win. Welcome to behind the curtain of how markets influence sales, with strategies of how to succeed.