I would say that when I look at cancelled, expired and withdrawn listings, I see a full spectrum of as you would call it, different service brokers where the home didn’t sell. Same with the homes that did sell, we see sales from full service and we see sales from discount brokerages as well. It is all very hard to break it down and see what caused what.
So agreed the main factor is how much does additional market make. So if say there is a brokerage that will do everything a full service brokerage does except brokers tours and open house but that they do it for 1% commission as opposed to 3%. So is that to say that these two facets add a full 2% value to the client who uses a full service brokerage? I am not trying to be flippant. As an engineer I am anal about numbers so I am just trying to do the math.
The fact that you had some listings that got sold prior to hitting the MLS is great. Being able to market a large office that has alot of agents and volume is a tremendous advantage. The first thing I say to all of my clients is what I am not. That I don’t have those resources, that I don’t have a stable of agents working in my office and that this is a major difference between what I offer and what you can get with a large brokerage. I always present them with what I do and what I do not do, and what the advantages are by going in either direction. It is ultimately thier choice. Referring to the math equation I spoke of above, this would definitely factor into that for a case of a large office against a small guy like me. However, I have seen large Help U Sell offices and I don’t think it would work against those.
I found your comments about buyers looking to sue everyone in the case of a leaky roof peculiar. It seems to me that it doesnt matter what the market conditions are, the buyer would sue if there was a leaky roof. The attorneys working for your brokerage would not protect your seller in court correct? The seller would be obligated to hire his own legal defense. They would protect your brokerage. The fact is, the buyer would sue the seller, and perhaps your brokerage. Additionally the seller could sue the brokerage as well. No seller should ever assume they would receive any legal protection for a brokerage. Or am I mistaken…Remember, I am just a junior guy without all the years of experience you have.
