Marketing Question

[Brianrpaul98]

Hi, I have 3 new-built detached houses for sale in a smaller centre that are side by side by side on the same street. The question we are struggling with is whether to have one Realtor handle all 3 sales, or divide it up between two or even three competing brokerages. We have no allegiance to any one brokerage at this point.

I am weighing the synergies of having one Realtor do the whole package with regards to marketing, open houses etc, verses the benefits of the competition developed with two or three Realtors.

Thanks in advance

Regards,

 

[MonteDobson]

Hi Brian,

If you use one realtor you may be able to negotiate a better commission rate as they will have 3 similar homes to sell in close proximity, thus potentially saving marketing costs for them.

On the other hand, using 2-3 different brokerages may create some competition, but with the market as it is right now, this may also backfire.

Bottom line, interview a number of realtors using the tools provided during Greg Habstritt`s presentation and choose one that will work hard and smart to sell your homes.

 

[Brianrpaul98]

Hi Monte, I am just wondering what you mean when you say having competing Realtors could backfire in the type of market we are in?

Thanks,
/Brian

QUOTE (C2Ventures @ Aug 30 2008, 11:17 AM) Hi Brian,

If you use one realtor you may be able to negotiate a better commission rate as they will have 3 similar homes to sell in close proximity, thus potentially saving marketing costs for them.

On the other hand, using 2-3 different brokerages may create some competition, but with the market as it is right now, this may also backfire.

Bottom line, interview a number of realtors using the tools provided during Greg Habstritt`s presentation and choose one that will work hard and smart to sell your homes.

 

[samwei]

QUOTE (Brianrpaul98 @ Aug 30 2008, 10:34 AM) Hi, I have 3 new-built detached houses for sale in a smaller centre that are side by side by side on the same street. The question we are struggling with is whether to have one Realtor handle all 3 sales, or divide it up between two or even three competing brokerages. We have no allegiance to any one brokerage at this point.

I am weighing the synergies of having one Realtor do the whole package with regards to marketing, open houses etc, verses the benefits of the competition developed with two or three Realtors.

Thanks in advance

Regards,

As long as they`re priced right, they`ll sell, regardless of whether you have one or three different realtors selling them, regardless of open houses, advertising, brochures.

If they`re not priced right, they won`t sell, period, even if you got the world`s best realtor marketing them.

Do you want to see Effort, or Results??

my 2 cents,
Sam

 

[Dan_Eisenhauer]

I agree with Sam`s comments 100%. I have written in another post recently that every house will sell in any market condition IF IT IS PRICED PROPERLY... and that does not mean priced to give a way... just competitively.

I suggest you list with the one firm, and negotiate a better commission rate.

 

[samwei]

QUOTE (Brianrpaul98 @ Aug 30 2008, 10:34 AM) Hi, I have 3 new-built detached houses for sale in a smaller centre that are side by side by side on the same street. The question we are struggling with is whether to have one Realtor handle all 3 sales, or divide it up between two or even three competing brokerages. We have no allegiance to any one brokerage at this point.

I am weighing the synergies of having one Realtor do the whole package with regards to marketing, open houses etc, verses the benefits of the competition developed with two or three Realtors.

Thanks in advance

Regards,

Getting the price right in a flat or falling market is critical, since the prices are falling away from you and there`s a tendency for sellers to chase the market down. In Edmonton and Calgary right now, only one out of 10 listings will sell, so it`s best to get your pricing down pat right at the start of the listing when it will receive the most attention it will ever get.

If you don`t get an offer within the first 30 days of listing it, your price is too high for a declining market. If your price is too high, you`ll either get tons of showings with no offer, or very few showings at all. If you do get an offer which "seems" too low, evaluate it very carefully. In about 99% of the time, that first sincere offer probably reflects the true market value of your home. You may not get a second at the same level in a weak market.

There are a few other strategies to supplement the pricing issue, such as Staging the home, offering commission incentives, or buyer incentives, painting, new floor coverings etc. A good realtor will offer some suggestions on all of these as they relate to your situation.

Best of luck,
Sam

 

[RedlineBrett]

Also agree with Sam and Dan Here.

I would list with one agent and negotiate a better rate.


QUOTE (samwei @ Aug 31 2008, 03:19 PM) As long as they`re priced right, they`ll sell, regardless of whether you have one or three different realtors selling them, regardless of open houses, advertising, brochures.

If they`re not priced right, they won`t sell, period, even if you got the world`s best realtor marketing them.

Do you want to see Effort, or Results??

my 2 cents,
Sam

 

[samwei]

QUOTE (Brianrpaul98 @ Aug 30 2008, 10:34 AM) Hi, I have 3 new-built detached houses for sale in a smaller centre that are side by side by side on the same street. The question we are struggling with is whether to have one Realtor handle all 3 sales, or divide it up between two or even three competing brokerages. We have no allegiance to any one brokerage at this point.

I am weighing the synergies of having one Realtor do the whole package with regards to marketing, open houses etc, verses the benefits of the competition developed with two or three Realtors.

Thanks in advance

Regards,

As an aside, in such a tough buyer`s market as it is today, I wouldn`t try to negotiate a lower commission from your realtor. Instead, you may want to think about offering your realtor a higher commission bonus as an incentive if he/she got your homes sold quickly at a price satisfactory to your situation.

An incentive of $2000 or $3000 on the commission per home is peanuts compared to the amounts you stand to lose in a falling market if you have to carry these homes over the winter.

You`re selling in a flat/declining market. Be prepared to rent them out, and weather the storm, or take your lumps and sell at market. The current market value is probably going to be way lower than you anticipated.

sam