Boycotting agents?

[FutureSDguy]

If the seller needs to impress his cocktail party fellows, he can package the 3% deduction into the sales price and then rebate the buyer afterward. You can cook things any way you want. The impact on the seller and the buyer remains the same, just two less brokers walking away with a profit.

By the way, I appreciate reaing your thoughts on this thread and many other threads, powayseller!

[Chrispy]

“he can package the 3% deduction into the sales price and then rebate the buyer afterward…”

The buyer still has to pay property tax on the higher amount, which is what shows up on the county sales record, so the “rebate” is less than it should be, all things considered.

This is the same flaw in logic that shows up when people throw a “free” car into a house sale. The buyer gets the car, the overpriced house, and the property tax bill on the overpriced house. Far better to knock down the price of the house and buy your own damn car.

[FutureSDguy]

I agree. I just think it’s better to have that 3% ready for either the broker or the buyer. It’s a fixed overhead of the sale. If the buyer asks and receives, buyer feels like they’re getting a discount and is more likely to buy.

Also, earlier, poway is basically saying “sellers need brokers because they price their property too high otherwise.” I don’t buy that logic. Just go to the county, get comparable sales, and then price accordingly. If you want to be greedy, you can with or without a broker to assist you, but if you want to price smartly, you don’t need to be spending a big chunk of your profit margin on a broker to tell you what that price ought to be. It’s a waste of $$$!

[powayseller]

Many people have successfully sold and bought homes without a broker. I tried selling FSBO twice, and had no sale for many months, until finally I listed with an agent. I was not on the MLS while I was FSBO, as these sales were in the late 1990’s. I’m kind of biased on behalf of realtors since I have friends who are realtors. I’ve had good luck with discount brokers, and don’t see any need to pay each agent 3%. 1% for each side should be sufficient. Any more than that, and we’re not paying directly for our service, but for their marketing time in wooing clients they did not get.

[(former)FormerSanDiegan]

Except for new construction cookie cutters it is not reasonable to think you can measure it to within 3%, especially for established neighborhoods (20+ years old).

How accurately can anyone assess the current market value of a property ?

Within +/- 3% ? Not likely.

[FutureSDguy]

Good point. I don’t think anybody is doing a very good job of it these days.

[lulu]

I don’t think its a boycott at all. From my personal experiences as someone currently looking to purchase a home, my husband and I both quickly noticed that FSBO usually means its way overpriced. We drive around often just grabbing flyers and its become quite a running joke when we get out of the car to grab an Assist-2-Sell or Help-U-Sell flyer. Most of these sellers aren’t really just trying to save a few commission dollars, they’re cheap, they won’t shell out cash for an agent and they won’t cut a realistic deal on their property either. That’s why these properties sit.

[SD Realtor]

Lulu you bring up a pretty good point. I notice that alot of FSBO sales are in that same vein. Rather then discounting the price by the commission they are saving, they end up pricing the home equivalent to comps. I never really understood that.

I used to own a Help U Sell and I had alot of experiences like you mentioned. I own my own brokerage now but I do experience the same thing. I do save people money on commissions but it is frustrating to deal with sellers who just do not seem to get it. Those that do understand the importance of pricing and truly preparing thier home for a sale, generally do sell thier home even in a deteriorating market like this one. However the majority of sellers still feel entitled to make as much as thier neighbor did in 2004. It is quite frustrating.

SD Realtor

[SD Realtor]

Lulu you bring up a pretty good point. I notice that alot of FSBO sales are in that same vein. Rather then discounting the price by the commission they are saving, they end up pricing the home equivalent to comps. I never really understood that.

I used to own a Help U Sell and I had alot of experiences like you mentioned. I own my own brokerage now but I do experience the same thing. I do save people money on commissions but it is frustrating to deal with sellers who just do not seem to get it. Those that do understand the importance of pricing and truly preparing thier home for a sale, generally do sell thier home even in a deteriorating market like this one. However the majority of sellers still feel entitled to make as much as thier neighbor did in 2004. It is quite frustrating.

SD Realtor

[Anonymous]

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