Tuesday, April 11, 2017

Beware Agents Who Want To Sell Your Home Privately.

 There is a common misconception being passed around lately about how it can be beneficial for owners to sell their homes privately through a, "connected" real estate agent in return for a reduced commission. These types of scenarios usually involve the agent offering to cut out all the expensive marketing, to pass the savings on to the seller.  Additionally, the agent either already has a buyer, or someone from their office has a buyer looking to purchase in the area.  This may sounds great to many sellers - especially with agent commissions hovering around 5 to 6% or more.  Besides, homes sell in hot markets without much marketing anyway - right?   Unfortunately these owners focus on the commission, and lose sight of the bigger picture,

This brings me to my story. A home recently sold in my local neighborhood that was never advertised to the public or on the MLS. Now before you jump to the conclusion that I'm experiencing some type of sour grapes, let me state what I know.  I know that based off the latest comparative sales in the area, similarly sized home have sold  between the low $700,000s to the high $800,000s.  The home in question though sold below the expected range. Not being involved, I have no idea what happened so can only speculate. Perhaps the seller was lured in by the projected savings from less marketing?  Maybe they were promised less hassle by the agent who already had a buyer lined up? They may even have sold to a relative. This sale involved two agents so its doubtful since most sales between relatives go through the same agent.  In any case, this seller left a lot of money on the table.  I can safely say the new owner got such a deal, they could realistically put the home back on the market today, sell it with traditional marketing, and make a profit after subtracting fees and commissions.

Competent agents will justify their commission with adequate marketing, knowledge, and protection.  At the very least, make sure your agent supplies the most recent comparative sales for your area. Never limit your marketing since your goal should always be to attract the most buyers to compete and drive your price up.  That is the only way to ensure you get the highest return.   Call me today (818)516-7387 if you want more information.

Philip Keppel 
Media West Realty
1300 W. Magnolia Blvd.
Burbank, CA 91506
818.516.7387 Cell