What should I expect from my realtor

[chellej]

We listed our house a few weeks ago and wondered what we should expect from our listing agent. So far it has been a frustrating experience and of course she wants the house perfect. I have asked her to send me a copy of the listing agreement because I had to catch a plane shortly after signing with her and don't have a copy to read the details.

Should I expect her to do open houses or does that have to be specified. It is on the MLS and several local media. How much should we expect her to realistically do. Isn't marketing what she gets the commission for when it sells?

Tonight she asked me about marketing allowances...I am not sure what this is as this is the first I have heard of it but suspect she is going to want us to pay for marketing.....waiting to hear on that one. I know there are several realtors on the bbs...would love to hear your input as to what I should expect

 

[ScoopKona]

We listed our house a few weeks ago and wondered what we should expect from our listing agent. So far it has been a frustrating experience and of course she wants the house perfect. I have asked her to send me a copy of the listing agreement because I had to catch a plane shortly after signing with her and don't have a copy to read the details.

Should I expect her to do open houses or does that have to be specified. It is on the MLS and several local media. How much should we expect her to realistically do. Isn't marketing what she gets the commission for when it sells?

Tonight she asked me about marketing allowances...I am not sure what this is as this is the first I have heard of it but suspect she is going to want us to pay for marketing.....waiting to hear on that one. I know there are several realtors on the bbs...would love to hear your input as to what I should expect

What should you expect? You should expect to pay her a commission if your house sells. That's ALL you should expect. Anything else is a bonus.

Isn't marketing her job? No it isn't. You signed a contract with her saying that you're going to pay her whatever you agreed if your house sells.

She may work hard to help your house sell. She might not do much at all. There is a good chance her idea of "selling your house" is to convince you to keep lowering the price until it sells. Either way, you're going to pay her what you agreed to in the contract.

Asking us after you have already signed a contract can't change anything.

 

[vacationhopeful]

....There is a good chance her idea of "selling your house" is to convince you to keep lowering the price until it sells. .....

That is pretty much almost ALL REALTORS idea of a marketing PLAN.

Most realtors in my neck of the woods, like a 6 month contract with multiple hooks to extend it longer for anyone who they "claimed" to have talked to on the phone or shown the house to. Send her a certified letter CANCELLING the any possible or implied contract as you did not received your fully executed contract in a timely manor.

The sooner, the better. You needed to fully have read the contract before signing it.

I am not a lawyer - YOU might want to consult a lawyer - who is familiar with real estate practices in your area.

 

[ronparise]

I am a licensed real estate agent in Florida.

generally speaking residential real estate agents fall in one of two categories; Sellers Agents and Buyers Agents. Sellers agents (listing agents) bring the inventory, and buyers agents bring the buyers (and their money)

I like to work with buyers. Not that I wont take a listing but I prefer working with buyers.... The big reason is that sellers have unrealistic expectations as to what their listing agent can do for them. The fact is listing agents can do very little. All they are really doing is stocking the shelves.

If Im going to bring buyers to consider your home only two things are important and only two things are in your control;
1) the price and 2) how the place looks.

I cant sell a dump for a high price, and a house that looks nice and is priced right will sell itself

So a listing agent is exactly right when they advise you to make the place look perfect and to reduce the price, Thats all they can do.


By the way print advertising doesnt work any more, and open houses are a scam. They wont sell your property. Open houses are a tool to bring buyers in so that your agent can sell someone elses house to them

 

[heathpack]

Open houses are a scam. They wont sell your property. Open houses are a tool to bring buyers in so that your agent can sell someone elses house to them

Really?

We've sold two houses. One was sold at the open house which was the first day it was on the market (it was in a "hot" neighborhood and the realtors strategy was to get as many people in the house as possible so they'd all be afraid the other guy was going to buy it). We got multiple offers and accepted the full price one. The home selling thing was over in a day.

The other house had a open house scheduled for a Sunday but realtor wanted it listed on Friday- he wanted the threat of the house selling at the Open House looming over people's head for Friday/Sat showings. This was a "normal" (ie not hot) neighborhood but a very cute house. The house was sold to the first people who walked in on Friday (we bought it in exactly the same way- we were the first people to see it and snapped it up instantly).

I'm really surprised to hear about open houses being a scam. They always seemed to be part of the strategy. When we bought our current house, our realtor was always scheming to get us into places before the open house. However we've never bought/sold a house in anything but a climate of bidding wars.

To answer the OP, we've always listed a home with a realtor after meeting with a few first and listening to their game plan, proposed list price, strategy etc. the two we've sold homes with had a very clear plan which they executed exactly as they said they would. It helped that they were both unique, desirable houses. We did have them 110% spotless, freshly painted, fuly decorated, landscape perfect (whatever the realtor told us to do) by the time they hit the market.

H

 

[Patri]

Why is this realtor the bad guy?
Of course the house should be in perfect condition. It hurts for a stranger to suggest presentation techniques that may vary with what you thought made your house a home. But the point is to make it show well for a buyer. It won't be your home much longer.
You should not have to pay for marketing. Maybe she has a certain amount to spend per listing, and she wants to know which options you are most comfortable with. Have a nice talk with her. I bet everything is routine for the business.

 

[ronparise]

Really?

We've sold two houses. One was sold at the open house which was the first day it was on the market (it was in a "hot" neighborhood and the realtors strategy was to get as many people in the house as possible so they'd all be afraid the other guy was going to buy it). We got multiple offers and accepted the full price one. The home selling thing was over in a day.

The other house had a open house scheduled for a Sunday but realtor wanted it listed on Friday- he wanted the threat of the house selling at the Open House looming over people's head for Friday/Sat showings. This was a "normal" (ie not hot) neighborhood but a very cute house. The house was sold to the first people who walked in on Friday (we bought it in exactly the same way- we were the first people to see it and snapped it up instantly).

I'm really surprised to hear about open houses being a scam. They always seemed to be part of the strategy. When we bought our current house, our realtor was always scheming to get us into places before the open house. However we've never bought/sold a house in anything but a climate of bidding wars.

To answer the OP, we've always listed a home with a realtor after meeting with a few first and listening to their game plan, proposed list price, strategy etc. the two we've sold homes with had a very clear plan which they executed exactly as they said they would. It helped that they were both unique, desirable houses. We did have them 110% spotless, freshly painted, fuly decorated, landscape perfect (whatever the realtor told us to do) by the time they hit the market.

H

regarding open houses: I may be jaded by the market I work in. Open houses seem to a recreational option when its too cold for the beach, or tennis or golf. Lots of lookers, few buyers

 

[theo]

BEYOND just surprised and in actual disbelief...

<snip> I'm really surprised to hear about open houses being a scam. <snip>

Personally, I think that the above referenced "scam" statement made by the omniscient FL real estate agent is utter nonsense --- but maybe things are just somehow "different" in sunny (heat stroked?) Florida...

I sold a family member's house a very few years ago; it was purchased by one of the very first people who attended the "open house" arranged by the realtors --- at very nearly full price. There had been no offers submitted at all during the several weeks of listing which had preceded the successful open house.

Last week, a house on my own street was sold for above the listed price --- to one of the first parties attending the "open house" arranged by the realtors. That particular "open house" was held on one of the first active days of the MLS listing.

In short, I certainly fail to see any "scam" in either one of these two specific (and both highly successful) "open house" instances in which I have direct, first hand knowledge and personal experience.

 

[chellej]

So marketing incentives she is talking about turn out to be things like offering the selling agent a bonus, offering to pay buyers closing costs etc....I thought the closing cost thing was something that went with negotiations not usually offered upfront.

We are not living in the property and our 21 yo son is sort of looking after the place. We have a separate apt with 2 window units....she wants us to leave them run so it is not stuffy......I said DS would turn them on before a showing...... Am I being unreasonable?

 

[sail27bill]

I have bought and sold a couple of homes and each time I sold the contract stated exactly what the realtor's responsibilities entailed. My first realtor was okay, not really marketing it hard but he did find a buyer fairly quickly so I was happy. My second did an awesome job selling in a very down market (we were downsizing) with awesome pictures and calling other realtors telling them about our house. Although our house was move in ready with high end finishes, the market was tough. We had an open house that was very successful as one of the people who came bought the house. We got close to asking as the number of people who showed up was considerable. Our buyers had seen the house one week prior so when the saw the interest at the open house they jumped.

The worst part was that we had to keep the house immaculate until the Mortgage commitment was final in case the deal feel through and we had to relist quickly. The plus side was that it made moving very easy. Here in NY where I live the listing exclusivity is usually six months so I made sure to go with a big name realtor and pay a little extra but it worked out fine. Check your contract and see what it states. You just might have to hang in there. Selling can be stressful but hopefully there will be a light at the end of the tunnel.

BTW-- I have no idea what marketing allowances mean. The realtor paid for the pictures and everything else. All she got from me was her commission on the day of closing.

Anita

 

[sail27bill]

chellej--I negotiated on a few things after I received an offer and an inspection was done. I fixed one thing, left a few items, but did not offer anything upfront in either case. That happened during negotiations. In terms of leaving ac's running, it might be expensive but honestly, I don't like odors and that might happen if the unit is not aired out properly. People might be turned off by this. The thing that I would be most concerned about is whether it is priced right. Have you checked out comparable sales of homes in your area for the last six months? Even though this is the realtor's job, I always checked to see if the price was adequate and would be acceptable to an appraiser.

Anita

 

[Ann-Marie]

I am reading this thread with great interest. We are in the process of getting our house ready to market. We just painted the whole house except the two kids rooms that were in good condition.,. All children have moved out already. What I am not sure about is putting anything back on the walls. I would like to hang a few paintings and some mirrors but my DH is afraid to make holes in the walls. All of our furniture is in excellent condition except the den. We have one end table that needs to be refinished. If I remove it, there will be an open space and it will look weird. I'm toying with what to do. Buy a new table, or just leave it since it is the only piece of furniture that has taken a beating. This has been so much work, but we are getting there. Hopefully we can get it on the market in another month. We still have to get some of the boxes that we have packed out of the dining room. The problem is where to put them. My realtor feels it is OK to load up the garage. IDK, still thinking about that one.

 

[CO skier]

By the way print advertising doesnt work any more, and open houses are a scam. They wont sell your property. Open houses are a tool to bring buyers in so that your agent can sell someone elses house to them

When we were looking for our first home (before the internet age), we obtained the MLS for our price range from our buyers agent and drove around to pre-screen homes for showings. We spent 6-hours each day the first weekend driving past at least 50 homes without finding one where we wanted to see the inside. A few weekends later while driving around, we were about to drive by yet another home where the curb appeal was just OK, but better than most we had been seeing. Since there was an open house, we thought, "Why not look at the inside?" (None of the other drive-bys had an open house). We did not sign the papers that day, but after another few weeks of looking, we eventually did buy that home. (The curb appeal increased dramatically after the landscaping was installed).

Open houses are a game of percentages. Open houses (maybe even most) do not always lead to a sale, but they are definitely not a scam. You only need to find one buyer; all the other Looky-Loos don't matter.

Print advertising in the form of the flyers available in front of your home works. We sold that first home to cash buyers who picked-up a flyer and called the real estate office. The home we purchased after the first sale recently sold to buyers whose first contact was picking-up a flyer in front of our home.

My suggestion FWIW -- keep that flyer box filled with at least 6-10 flyers. Nothing is more frustrating to potential buyers than an empty flyer box at a home that has some interest to them (sure, they could 'look it up online' but will they remember the address and go to the trouble? Much better to give them something to hold in their hand -- it worked in our case, anyway, even in this age of the internet). You, as the seller, will have to take responsibility for obtaining a supply of flyers from the agent and arranging to see that it is checked and stocked daily, especially during the first couple of weeks when all the neighbors are taking a flyer. Real estate agents to do not have the time to check the flyer boxes daily, so those boxes can be empty for days or weeks if left to the agent.

 

[tlwmkw]

Did they put it on the MLS system on the internet? Around here that is key- everything is pre-screened via internet and then people only go look if they are interested. It means the photos of the house are very important. Some look like they are done by professionals for Architectural Digest after being extensively stage.

The open house seems to be a thing of the past around here too (not sure if scam is the right word but very few sales result from them)- it's all about private showings. They still do Realtor open houses where the house is previewed by local Realtors (who sometimes bring clients) and sometimes houses sell that way too. Lots of sellers only allow appointment only viewings and no open houses. I guess it depends where you live.

tlwmkw

 

[vacationhopeful]

I talked to a different realtor whose office I had not dealth with before - about 3 months ago.

Realtor came out to the EMPTY and freshly painted house. She just gushed and gushed about how wonderful the place was and updated with new kitchen, lighting, rugs, tile floor, new windows. As she had a good day (30 hours before coming to my house) to prepare for viewing this house and this was a development townhouse, I felt she should have had a RANGE of values and sales of that model to TELL ME what she was thinking as to a listing price AT THAT TIME!

Wrong --- gushing and wonderful words in her vocabulary turned out to be a listing price 7% LOWER than the lowest foreclosure on the close sales MLS listings. 3 days after I showed her the house. Plus, the wonderful photographer pictures would cost ME $900 upfront.

I went back to the person who recommend her and BLASTED him.

Oh, she did say during her 75 minute tour of the property, this house should sell very quickly thru another agent in the office. People are just lining up for a clean house like this ....

PS She was very quick to point out, that banks were not approving any values higher than what had been sold before. So getting a contract for $5000 higher is a waste of time == bank won't finance it. This was HER JUSTIFICATION for giving me such a extremely LOW BALL listing offer. Plus, she said, I could hold out of multiple offers ==> HOW dumb did she think I was? Once her broker had an offering at my signed contracted listing price, I figured I would be either selling for that price or handing over a check for HIS FULL COMMISSION - with the issue being, he earned his commission and I agreed to SELL it at that price; changing my mind was not going to cost him money.

 

[LUVourMarriotts]

I recently sold my house. I had originally hired the agent I used to buy the house. She posted to the MLS, took her own photos that were not that great and did a few open houses. But, there are 2 MLS's in our area. Our price, sq ft and other info was different on each MLS. She didn't follow up on showings we had, etc.

We then were recommended to speak with a different agent. She went through our house and told us what to put in storage, etc. She hired a professional photographer on her dime. She listed everything properly and fixed the issues that were on the MLS from the previous agent. When we had showings, she was on top of the feedback loop. Feedback is helpful, good or bad.

In the end, what I believe is most important is to have a good agent who will work to sell the home, has good connections in the area with other agents, etc. But even more, the agency is the one that has all of the infrastructure in place to market your listing. We used Houlihan Lawrence. They are big on technology, so they use a single feed to populate about 40 different sites for listing info. It's not all from the MLS, there are other streams to get the listing out on different sites. That online presence is exactly what sold a friends house through them, as the buyer lived across the country. This is also what helped us quite a bit, as people from all over came to our house for showings.

 

[Maverick1963]

I agree with tlwmkw and LUVourMarriotts. The photos and the information on the internet are really important. They are actually a sales agent. It is better to check the photos of your property on the realtor board website. I do not believe agents who do not care how the property and the interior look in photos. Even if you do open house, you will have to pre-sell good image of your house beforehand. Otherwise, you cannot expect prospects to show up. If the photos are great, you may have to think about pricing.

 

[ScoopKona]

Personally, I think that the above referenced "scam" statement made by the omniscient FL real estate agent is utter nonsense --- but maybe things are just somehow "different" in sunny (heat stroked?) Florida...

I wouldn't use the word "scam," but I agree with Ron that open houses are basically worthless. At least where I live they are. I also agree that open houses work best for Realtors -- it gives them a steady stream of buyers who might need an agent. Nothing more.

If the house is priced properly, it will sell itself.

Sellers employ listing agents because they are afraid they might leave money on the table. If they would bother to learn the basics of their market, they could skip the 6% listing agent and either FSBO it or list with a discount "I'll get your house on the MLS" broker.

It has been my experience that people are better prepared and more informed about buying or selling a car than they are about buying or selling a house. They assume that because Realtors exist, they don't have to know ANYTHING about real estate. And yet it is for most people, the primary investment that they have.

 

[ronparise]

I wouldn't use the word "scam," but I agree with Ron that open houses are basically worthless. At least where I live they are. I also agree that open houses work best for Realtors -- it gives them a steady stream of buyers who might need an agent. Nothing more.

If the house is priced properly, it will sell itself.

Sellers employ listing agents because they are afraid they might leave money on the table. If they would bother to learn the basics of their market, they could skip the 6% listing agent and either FSBO it or list with a discount "I'll get your house on the MLS" broker.

It has been my experience that people are better prepared and more informed about buying or selling a car than they are about buying or selling a house. They assume that because Realtors exist, they don't have to know ANYTHING about real estate. And yet it is for most people, the primary investment that they have.

Just a point of clarification, if you go with an "Ill list your house for $100" broker to get your house on the mls, you will still want to offer the buyers broker a commission typical for the area. Where I work its 3%. A little more is better, a little less and it wont get shown.

ScoopLV is right, properly priced your home will sell itself. Where a listing agent earns their money is with their pricing advice, because priced wrong it wont sell at all. And often times a listing agent will tell you your home is worth more than it is to get your listing.

A problem a lot of folks dont consider is that if your house is priced above the market, even if you find a buyer at your price, they wont be able to get it financed. And without financing there usually is no sale.

 

[cgeidl]

Open Houses are Mostly for agents.

I have been a broker for 35 years withnseveral in residential. I have held open houses on our own home many times and never got an offer on our own home but always found buyers for one to three other homes. I have listed only one home which was sold to an open house buyer.
What is extremely imortant in today's market are good pictures and virtual tours. We have a home listed in AZ and have the best agent for the area as she has professionl pictures and a web site used by other agents and comes up first when you google our community. We had one offer from the pictures which didn't work out.
This agent spents 50 to 60 hours a month on updating and improving her web site. She has a well thought out marketing plan. About three times more people come thru our home than other comparable homes due to the great online marketing.
We are now in CA and having a home built for move in August.
Hope you have better luck with your agent.Most homes sell from MLS but peple looking screen the pictures and info from MLS and pictures need to look professional and the agent needs to pay for this in my opinion.

 

[vacationhopeful]

Real estate agents love to double dip and love "must" situations == either ones they create or due to the buyer's or seller's need. Brokers with an ownership interest will do whatever is marginally legal to get a commission and the faster the better --- before either the buyer or seller "wakes up".

As either a seller or buyer, you are not getting "financial" advice or "unbaised" advice from either a real estate sales person or their broker. The advice given above (by prior posters on this thread) is to take time and research the market yourself or to hire an indepentant local real estate appraiser to evaluate your house and market.

Remember, a $10,000 price reduction on a house listing with a 6% commission schedule, is only $150 (CHUMP CHANGE) to EACH to the Listing Agent, the Listing Broker, the Selling Agent and the Selling Broker. And $5,000 in closing costs to the buyer at the settlement table, is NO REDUCTION in the commission to anybody but the seller. But it is $9,400 less that YOU the seller will see in your proceeds from the sale.

PS. My favorite counter-arguement I get from Real Estate sales people is: CARRYING COSTS. If you are living in the house, you have marginal carrying costs. You would have to pay for a roof over your head where ever. If they know you to have a deadline where you will be paying for 2 houses or your financial status is going to change, they will MAKE absolutely sure you are hung out to dry. They will NOT allocate advertising dollars unless you are under the gun and the listing still has 3+ months to run. So, if you are sweet talked into a higher listing value than YOU THINK, be really sure that value are correct.

I feel, that the first 4-6 weeks your house is listed, is the sweet spot on the market.

No, I am NOT a real estate agent nor have I ever been. I just over the years have dealth with those professionals.

 

[camachinist]

So marketing incentives she is talking about turn out to be things like offering the selling agent a bonus, offering to pay buyers closing costs etc....I thought the closing cost thing was something that went with negotiations not usually offered upfront.

Usually covered in writing in the listing agreement, such allowances are negotiable. As example, you may offer a defined 'allowance' at closing, essentially net to the buyer, and negotiate that the selling agent adjusts their commission to reflect the lower net from the sale versus gross selling price.

What should you expect from your realtor? What is covered in writing in the listing agreement, augmented by the general reputation of the agent amongst their peers and customers. The more respected and more highly referred the agent is, the more likely a positive outcome. Personally, I've found 'agents open houses', where the gathering is strictly brokers and agents, along with the seller, to be a good barometer of where things may potentially go.

As far as 'curb appeal' goes, it's critical to attracting a full-price retail offer, especially in a lukewarm to buyer's market. In our area, professional contractors and investors have made a business of bringing distressed and run-down homes to such perfectly staged condition, professionally marketing them with their own in-house brokerage services and staging them to the retail market. Resounding success. I took a lot of lessons away from viewing their properties and processes and applying them to staging my own rentals to attract high quality tenants. It works.

We have a separate apt with 2 window units....she wants us to leave them run so it is not stuffy......I said DS would turn them on before a showing...... Am I being unreasonable?

Compare the cost of power versus the benefit of a positive feeling in a full retail buyer. I can tell you, living in the 'desert' where it'll be near 110 today, one can hang meat in my rentals when they're on the market. When a qualified tenant walks in the door, I want them to feel that they could live there, today, no matter when they happen to stop by. No ambiguity. The cost of power, in the long run, is peanuts, and energy efficient properties (another tip to 'selling') are exceedingly stingy power users, so that cost is low. That's my experience.

 

[bogey21]

I sold my last house myself. This was 3 years ago. All I did was put a sign outside with the price on it and my phone number. When someone agreed to buy it for close to my asking price we drove (together) to the title company about a mile away, signed a contract we pulled off the Internet, and later closed there. The costs were minimal and we split them 50-50 except for the title insurance which the buyer paid for. This was in Texas. Maybe the rules are different in other places.

George

PS I had previously decided that if I didn't sell my house in 6 months that I would explore hiring an auction company and having an auction. Since my house sold I didn't have to contact an auction company so I'm not sure exactly how they work or what they cost.

PPS The big hassle was the Buyer who had good credit getting a loan. The lenders put them through all kinds of hoops that I thought were over kill. The lender blamed them on the Government and new regulations. Who knows?

 

[ScoopKona]

Personally, I see real estate agents eventually going the way of travel agents. In the 1990s, before the Internet really took off, travel agents scoffed at the thought of being marginalized by a computer.

That's back when travel agents still entered gibberish into SABER in order to get a ticket from point A to point B. Then came "Easy Saber" and then finally the travel sites we all know and love. Here in Las Vegas, most of the travel agents cater to people who do not speak English and do not have access to the Internet. Everyone else uses Kayak.

There are still niche travel agents who do well in the age of Hotwire and Kayak. Round the world trips, yacht charter trips, fishing trips in the middle of nowhere -- that sort of travel. (But even then, the Internet is making inroads.)

It's the same thing with Realtors. The only reason we need them is because of the MLS. Once there is a viable public alternative to MLS, that's it for all but the most specialized agents. And that's why the NRA is shoveling money at Washington to keep the status quo.

At the end of the day, it's just a house. It's really no more difficult than buying or selling a car.

 

[vacationhopeful]

Personally, I see real estate agents eventually going the way of travel agents. In the 1990s, before the Internet really took off, travel agents scoffed at the thought of being marginalized by a computer.

<snip>

It's the same thing with Realtors. The only reason we need them is because of the MLS. Once there is a viable public alternative to MLS, that's it for all but the most specialized agents. And that's why the NRA is shoveling money at Washington to keep the status quo.

At the end of the day, it's just a house. It's really no more difficult than buying or selling a car.

Fully agree with you. But there are no discount brokers around here. Used to be, the $595 listing broker 5+ years ago. But current brokers are NOT open after 5PM weekdays or even over the weekends. Brokers/owners do NOT want to pay for lights or utilties NOR have people for security sitting around an office alone. Phones go to voice mail.

And everything seems to cost the owners MORE money - like the $900 photographic package was not an option to list your house. My $200K house would have been a 6% commission ($12,000 for $3000 per hand in the pie). Marketed on internet sites, thru the MLS realtor site, a sign in the front yard =>it seems to be more of a problem that MLS and the realtors' associations have with commission splits.

Think my next call will be to a Re-Max realtor office - where the broker recovers desk, office phone, office services & costs as their desk rental fee from the agents associated with the office. True, the broker might want me to pay $900 photos fee instead of them off their $3000 commission check ... but broker was paying the PRINT AD costs for years: How much was that per listing and I was never asked to pay those fees?

Thanks to the several posters who commented that THEY did not pay for the listing (professional) photography services.

I felt at the time ($900 was NOT a staging the house service) and being empty, just HOW HARD is it to light and photographic a house. Plus, how come the realtors office was not getting a "bulk" service price or an empty house price? Bet next bill would be thousands of dollars to STAGE an empty house....