When looking at offers on you house, be sure to look at your carrieing charges... What is your monthly payment, taxas and insurance... These are all questions you and your gent should be talking about when you get an offer on you listing.
When selling a home, does the seller make the decisions, or does the listing agent? I've asked this question many times, but always with another example. Today is no different...
There is a listing I have been watching. The listing agent used to be an escrow officer at a title company and switched to the real estate agent side a few months ago thinking it would be easier and more flexible. (Not quite sure how she came to that conclusion.) I wanted to see how her end strategy would turn out, being a new agent and all.
I had buyers interested in this listing and we submitted an offer. The asking price was originally $158k and did consistant price drops every 2 weeks. When we submitted our offer, it was listed at $142k. We submitted an offer at $134k knowing they were about to have another price drop since it was the end of the next two week cycle.
They countered back full price. What? Excuse me? You've been on the market for 3 months with no other offers and only a handful of showings, and you counter full price?
I spoke with my buyers and we increased our offer to $136k... the sellers responded back at full price again... or did they? I got an email from the listing agent stating (paraphrased) "My sellers already countered back full price and will not accept anything lower." Makes you (me) wonder if our counter was given to the seller...
Fast forward a couple of months and the property is now sold. What did it sell for? $138k!! Why am I laughing?? Because they had to continue to make mortgage payments and tax payments and insurance payments and utility payments for two more months to sell the property for $2000 more, PLUS they also gave the buyer's agent a $500 bonus.
Did the sellers actually make $2000 more? You do the math! In this price range, and using an interest rate from 2003 when they bought the property, they were probably dishing out about $1400 a month with all housing expenses. Multiply this by the extra two months it took to sell, and that's $2800.
It COST the sellers $1300 to sell for $2000 more two months later.
So, I ask again, who do you think made the decisions, the sellers or the listing agent? I don't think the sellers could come up with some idiotic strategy to do a price reduction every two weeks, though it might have been the seller's decision to over-price the property to begin with and this was the only way the listing agent could get them to lower the price. The initial counter to my buyers for full price might have been the seller's decision, but what about our counter back to them? Whose decision was it to reject that? I personally feel the listing agent didn't tell the sellers about it, but I have no proof.
This is an example of a not-so-savvy seller working with a not-so-savvy real estate agent. It's ok for the seller to not be so savvy as they aren't the professional, but a not-so-savvy seller hiring a not-so-savvy agent to help them with such a large investment is an even more not-so-savvy move for them to make.
What do you think?
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
** #1 Agent in my Office for all of 2008 **
Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
*Sellers Net Less to Sell for Higher Price * was first published on donnahomesblog.com.