Real-estate Agents Grrrrrr

[Big Cliff]

So as many of you know Sue and I are in a transition mode, we love this place but it has become more than I can handle in the last few years so we are going to down size.

 

I have talked to a couple of real-estate agents over the last few months about selling this place and finding out what a fair asking price would be, I have also talked to a few other people that sold their places. I believe we have established a fair and reasonable asking price based on what we have to offer.

 

Last night we sat down with an agent thinking we were going sign a listing. That is when the fun started, the agent sat here showing us "similar places" to ours that had sold in our area (all for less than what we had been led to believe our place was worth).

 

I started going through these "similar" places. One had no basement, it was on a slab. Ours has a full basement with two bedrooms, a 4 piece bath, beautiful family room with fire place.

 

The next one had a wet slip boat house, I've seen it, the wood is all rotten and it is bairly sitting on some pilons; ours is all new built to with stand huricanes (really, huricane strips and all) dry boat house with a marine railway. most of the houses she showed me were built with 4" walls and insulated to R12, our exterior walls are all six" and insulated to R20.

 

There were MANY things that our place has compaired to the ones she was showing us but it all boiled down to the same thing, the only similarity was they were in our general area, they were houses, and they sold for less than what we wanted.

 

The list just keeps going on and every time I pointed out one of these things she just blew it off and showed me another house that sold for less than I wanted and explained how the market was starting to stagnate and people weren't buying the more expensive houses.

 

Then I asked her about the commission, if we were selling for $200,000.00 she would get $10,000.00 commission true? The answer was yes. If I sell for $600,000.00 she gets $30,000.00 true? The answer was yes. Then I asked her what she did differently between the two to earn the extra $20,000.00. Did she work harder, did she spend more advertising, what did she do differently? The answer was; well it's a lot harder to sell a $600,000.00 property than to sell a $200,000.00 property.

 

After she left I looked at Sue and said "she isn't interested in SELLING our place, all she is trying to do is convince us to sell it at as low a price as she can so that someone buys it because it is such a good deal".

 

I have been in sales all my life and I know that a good sales person looks for and at all the benifits and features then takes that information and sells it to a buyer. Not one of the agents I have talked to lately is interested in doing that! Every one of them was more interested in what other places had sold for, in other words they were only interested in selling on price, make it cheap enough and someone else would buy it.

 

Has anyone here used a company called Property Guys? My neighbour did and just sold his place, not sure how that all worked out for him because it just closed but my understanding is that they have a good reputation.

 

Comments please!

 

 

 

[leaf4]

My suggestion is first find a different agent, and also have you ever considered renting it out? Understanding you want to downsize and buy a fifth wheel or motorhome, a renter would let you keep your place to come home to after your long travels (with proper notice of course) or cover expenses on your new, smaller home.

 

In Hamilton we have a lot of comfree listings, where as I understand you pay a flat rate and they list your house, and they don't receive a commission on it.

[Old Ironmaker]

List it yourself Cliff and keep the 5% commission. I was told by 4 different agents and Dad's place might sell for 249K. I listed it at 265.9K and we got 275K with 6 weeks in a bad winter a year and a half back, today it would go for 325K for sure in this hot Hamilton market. They want a quick sale to minimize marketing costs and work. A friend used Property Guys and was very happy to save the 5% commission. You can sell it, just do it.

[NANUK]

Sounds like a typical lazy agent, its a common strategy with a lot of real estate agents, Just list it on MLS at a bargain price and hope to sell for a fast / easy commission, if it sells for over asking they look like a star (mostly in big city).

She doesn't know the obvious differences between your place and the one she is comparing with, how can she be a good salesperson for your property ?

You are on the right track by asking all those important questions before signing a contract,

You will find some one who deserves your business.

[captpierre]

This time of year is a bit tricky Cliff.

In the spring, when lots of folks are looking for waterfront property, might be better to list without an agent. Might still be ok, but don't wait too long.

Find a good agent and don't be afraid to negotiate the rate.

I would think you can find one that would take 4%.

Having a motivated vendor is easy money for an Agent.

[adempsey]

If you're in no rush, try one of the listing services as mentioned. A lot of people in my area use them (a lot don't as well), but they seem to take a bit longer to sell. My guess is the buyer agents probably avoid them.

 

Oh, definitely ditch that agent. They're so many out there.

Edited September 12, 2015 by adempsey

[pics]

She may already have a buyer.. could be family or friends or even a client looking to buy.. Determine what you want and if the agent won't agree, there are lots of others who will..

[Dutch]

I dislike agents as much as the next person. In many cases, they make (notice I didnt say earn) way more than they should.

 

As far as FSBO goes the facts are this - Owners often list their own homes for too much. Often they sit and sit and sit, then they list with an agent and eventually sell. Another fact - most buyers mistakenly sign a representation agreement with an agent. What that means is a number of people wont even see your home as the agent simply wont show it to them as there isnt 2.5% waiting for them.

 

You made good points about the comparisons, but most buyers dont look at that. They do look at comparable listings in the vicinity - just like the agent said. Most buyers arent as knowledgeable as you are. When owners list on their own buyers are looking for an even better deal as they know you are saving the 5%. In other words, if two exact same houses were listed, a buyer would expect the one that is fsbo to be listed for less so the same net amount that the full listing house goes for goes to the fsbo.

 

Now isnt the time to list waterfront. Wait to the spring if possible.

 

If looking for an honest realestate guy, give Bill Wolff from Remax a call to see what he has to say.

 

If you do list on your own - do a listing only agreement on mls if you can find someone to do it. Cost is usually under $500. You pay a flat fee to list on mls (so buying agents can see it), but you'll need to offer the buying agent 2%-2.5%. At least this way you save the selling comission of 2.5%.

[mr blizzard]

Cliff I have been off the board for a few days, simply because we have been trying to survive, I will pm you tomorrow , don't do a thing, well u cant its 1100 pm your time lol

SLATER

u know what I mean

[b2kptbo]

Hey Cliff, used the Reality Guys to sell my place in Peterborough last month and had it sold in a week. Found Brian Schofield was right on the ball with the pricing and he talked about water front properties. Give him a call and have him check your place out, I found down to earth and easy to get along with.

 

Bill...

[ketchenany]

Cliff list it what it's worth not what nearby properties were / went for.

Some are looking for a quick sale and comm. NO WORK.

15 years ago I interview agents to sell my place, all came in at under or close to selling price.

I had one come in and insisted it was not worth more that 280, I told him to leave, that was even lower that comparable properties . . . In the area

I listed the home, the sign went up at 1 pm and it was sold by 10 pm for 320.

[fish_fishburn]

No love here for REA's. Its your property Cliff. Tell the agent this is what I want to list at and are you interested. I run into this often. I have had to walk away from possible listings after I have done my presentation because the Seller thinks their property is worth way more than I have suggested. I just politely decline the listing and suggest they call someone else. I hate to do that but I am not going to invest my time and money to sell at property that is way over priced by the seller and will be impossible to sell.

 

Maybe you should keep an eye on the open houses in you area and go and check out a few to see what they are offering compared to yours. Great way to educate yourself on the value of properties in your area. There are lots of really good hard working agents out there Cliff. People who say we make to much money for the work we do are just repeating what some other dummy said. If that was the case why aren't those people REALTORS. Wish I was closer to you Cliff to give you another opinion. Feel free to contact me if you have any questions. I would be happy to help you out if I can.

[Mister G]

Get someone to APPRAISE your property first, then go from there. If you sell it yourself or use a agent at least you now know what your property is worth. But always remember, you have a price in mind what you think your property is worth but buyers might not see it that way and they actually set the selling price.

 

GOOD LUCK

[Old Ironmaker]

'm surprised any agent would turn down any listing. I was told recently by a very successful agent when I asked him about ridiculous expectations from clients he said "better to have a sign on the lawn than in the trunk".

 

Cliff ask the agent what he/she is going to do for me? Marketing budget, agent open houses, number of open houses for public, suggestions for staging, small spruce ups you can do as the owner and their track record in the past 12 months? The other thing is if they are the Big Dog locally am I going to have to deal with your protégé? An agent I had stuck some kid who was in the wrong business and he drove me nuts until I told her not to have him call me again. You are in waterfront property, there has to be someone that specializes in waterfront where you are. They usually have big city markets where clients have been looking for waterfront.

 

Waterfront can not be compared to anything else but waterfront, then there's waterfront and there's swamp front. In my experience late winter would be the best time to list water front.

[Gerritt]

Wish John was still alive, he'd set you On The right path

[ketchenany]

Wish John was still alive, he'd set you On The right path

Very true

[woodenboater]

what Dutch said. DO NOT sign any agreement with an agent unless you are super comfortable and trust them otherwise you are stuck afaik. I'd take the time, if you have that, to look for a good agent and let them navigate the real estate minefield. But that's me, I have better things to do than babysit tire kickers. good luck in the next chapter

[landry]

I would walk away from her - some of the high volume agents routinely list low as it equals a far better bottom line for them.

If you have time - sell it on your own. That is by far the best plan. It will be harder work but you will be paid 25,000 for your hours and effort.

If you are in a hurry then find a new agent.

If you sell it yourself people will try to lowball you cause they know you are saving 25,000 in commission fees.

 

I hate when people rip on other peoples professions though. If people don't like agents don't use one. It's up to the seller. And if all real estate agents make so much or too much then why don't people just go get their license and start taking in the cash while golfing every day.

My brother n law was a real estate agent for a while. He is honest and hard working. It was harder to make money than people may think. And yes he told me there are snakes doing it and under listing regularly.

 

Good luck with the sale Cliff.

Edited September 12, 2015 by landry

[woodenboater]

Some agents deliberately list below market value to create feeding frenzy which, if the plan works, is to get buyers overbidding in an effort to come out on top. they go to an open house and see nothing but a house full of potential buyers and they either fold or go all in and then some. usually a big deposit wins the day. happened to one house I was looking at. way underpriced according to my agent and when I saw who else was looking, I knew I was not going to win.

[farsider]

With the weed issue you are having as well, wait until late winter/early spring to list if you can.

In the meantime, you can do all the sprucing up you want and seriously vet agents if you want to use one.

 

Just because a profession makes money, doesn't mean everybody would be willing/want to do the job for that money. The oldest profession comes to mind... among others.

 

Cheers,

Mark

[misfish]

 

 

I hate when people rip on other peoples professions though. If people don't like agents don't use one. It's up to the seller. And if all real estate agents make so much or too much then why don't people just go get their license and start taking in the cash while golfing every day.

My brother n law was a real estate agent for a while. He is honest and hard working. It was harder to make money than people may think. And yes he told me there are snakes doing it and under listing regularly.

 

 

Thanks for saying Landry.

 

I was bite,n my toung, as my sister has been selling now for the last 5 years. She works hard, very friendly person to deal with ( in her nature, unlike her 3 brothers.guess we didnt rub off on her. LOL) and is not one of those SNAKES.

 

All the best to you and Sue bud.

 

Cliff, if you were closer to her, I would recommend her.

[craigdritchie]

Not sure how things are in your neck of the woods Cliff, but around here, it is a very small number of real estate agents who seem to do at least 90 percent of the sales. They're the ones who really work it, and they're the ones you will likely have the most success with. Find out who they are, talk to a couple of them and find one you're comfortable with. Then, it's a lot easier. They're not all turkeys.

 

By the way, it's important to understand that "what the house is worth" and "what the house will sell for" are two completely different things. The appraised value might not be even close to its realistic market price. The reality is that many homes have very expensive features in them that simply won't factor into their resale value (things like the additional insulation in your boat house, although valuable, might fall into this area).

 

Comparisons to the actual selling prices of similar homes in your area is a much more accurate guide.

Edited September 12, 2015 by Craig_Ritchie

[Big Cliff]

Well, we had a very interesting day! Met with the local rep from Property Guys, Ken. right from the start it was very comfortable, he spent most of the first half hour listening and looking.

 

Then he carefully explained their process and shared some of their results. By the end of it all he suggested that perhaps we should get an independient apprasial so we had a good idea of waht a fair price would be for waht we had to offer.

 

We will know in the next two weeks if I am expecting too much or not! I will re post!

Edited September 12, 2015 by Big Cliff

[ecmilley]

hey cliff my motheres a agent in the area if you want i can make introductions. unless its who u had lol.

my own reviewing of propertys in area as you know i ve been looking would put you in the $450k area, can i have my 5% now lol

[BillM]

Just went through the exact same thing... Buying agent gets 2.5% our selling agent got 1% (We got a pretty good deal).. Still my house sold in less then 8hrs. Figure out that hourly wage!!!!!!!