Selling in buyer`s market

[SPeever]

Hello All:



I am interested in hearing your ideas regarding what a realtor should be doing to sell in a buyer's market. I have a property for sale in Victoria, BC and my feeling is that the realtors are not adjusting to the type of market that is happening right now. I would really like to hear your ideas regarding what a realtor can do, and what a seller can ask for in this current market. I would really like to hear about what the rules are regarding commission and whether this is 100% negotiable as well, since this is an area that fome realtors are not as willing to discuss upfront. Is it reasonable to offer incentives to the realtor who brings the sale, or is it better to offer incentives to the buyer?



Thank you.

 

[Sherilynn]

Not sure about the incentives, etc., but there are several simpler things that you can do to the house to help the sale.

• pack away personal photos and personal items. You want the buyers to picture themselves living there and you don't want them to feel that they are invading your space
• get rid of clutter. Take anything (including clothes) that you don't need and store it elsewhere (a friend's garage, a storage unit). This makes your closets/storage look bigger and the whole house look more organized.
  Stage the house. Set the table as if you are ready for company for dinner. Throw a comfortable blanket over the arm of a chair and leave a book open on it. There are a myriad of things you can do to make the house feel warm and inviting that will leave a positive impression on the buyer.
  If you have pets, get rid of them for all showings.

 

[ChrisDavies]

Commission is typically going to save you any real money. If you go from 10% to 9% you're only saving a couple grand. A great realtor is going to do more to make sure you get it sold. Rather than asking them to earn less, ask them to do more. Try offering more commission - bonuses for the buyers' agent can work.



Here's a handful of ideas:

• Buyers' agent bonuses
• Underprice your competition by ~1% (either on comparables or per square foot)
• Add bonuses or stuff for the buyers (furniture, pre-pay condo fees or HOA)
• Stage your home
  Vacant homes are easier to show. Also think about making sure other agents can show on very short notice.
  Make sure your home looks awesome. Lots of realtors won't be mean enough - they need to remind you of stuff like lights and toilet lids every time.
  Open houses don't work - talk with your agent about doing some more online marketing - single property websites, local classifieds and relocation/retirement sites.

 

[Sherilynn]

And don't be afraid to buy some accessories for your home (framed photos, vases, etc) especially if your walls and shelves will be bare after you pack your personal items. A small investment will pay off. Costco even has an image gallery that you can choose from. Famous artists for pennies on the dollar!



Less is more when it comes to decorating, especially for staging a home; however you don't want to have bare walls with nothing but nail holes.

 

[invst4profit]

Commissions are generally a topic of negotiation however the negotiations are in the control of the realtor unless the market is very slow.

I would definitely not offer any "bonuses" to buyers or there agents. No buyer is going to decide to buy your home because of a bribe and buyers agents will bring there clients to your home because they believe they would be interested in buying. Again you can not attract a interested buyer by bribing there agent. The agent will bring their buyer to benefit from the sales commission. That is incentive enough and has always been sufficient in the past although real estate agents may suggest otherwise (surprise, surprise).

Offer bribes if you want but the likelihood is that the final buyer and there agent will be exactly the same with or without the bribe. The person that buys the home is the one that falls in love with it.



I would suggest you consider changing agents if you feel you are not being properly served.

 

[smmcguire]

I am interested in hearing your ideas regarding what a realtor should be doing to sell in a buyer's market. I have a property for sale in Victoria, BC and my feeling is that the realtors are not adjusting to the type of market that is happening right now. I would really like to hear your ideas regarding what a realtor can do, and what a seller can ask for in this current market. I would really like to hear about what the rules are regarding commission and whether this is 100% negotiable as well, since this is an area that some realtors are not as willing to discuss upfront. Is it reasonable to offer incentives to the realtor who brings the sale, or is it better to offer incentives to the buyer?



Thank you.





Hello SPeever


If selling in a down or soft market, you should expect a prof. realtor to advise you to be ahead of the curve, if its trending down then trend your price lower than MARKET. What's the point of listing at market if the price is 2% less in 2 weeks.


Curb appeal is paramount, a property is 50% sold before the buyer reaches the curb.


Staging- well you know the drill, clean it up (sight and smell) and de-personalize it.


Incentives are difficult to do as they must be disclosed to all parties in the transaction and in the case of buyers, may have to be disclosed to the lender (mortgagee).


In Ontario, and I`m sure the rules are not much different if at all... ``Any rebate offered to the client or customer must be disclosed in accordance with the Real Estate and Business Broker Act (REBBA)




Yes, you can neg. commission. But if you are cheap, then consider the work done for little return. Would you like to take a reduction on your paycheck for the work you do. How does it make you feel. What do you feel your value is. I love asking this because everyone loves to think they are worth every penny and more... but when it comes to others and their services, the purse string goes tight

 

[SPeever]

Thank you all - excellent feedback, and much needed.