Full Service vs. Limited Service or Virtual Agents—Is There Room for Everyone?
The short answer is of course yes. Different sellers have different needs and abilities and some may choose a full service model and others limited or no service at all-the choices have been there all along. Yet the arrival of virtual Internet brokers has spawned a new ideology of it’s either "us or them".
The very survival of limited service or virtual Internet brokers relies on two things: The first is they are able to convince everyone that paying a 6% compensation is the only alternative to their "discount" model, and the second is that they must convince their prospects that the minimum service they provide is all that is needed to sell a home; and everything else which a full service agent does is a waste of time and their money.
These assertions that they need you to believe are false. Frankly; it’s a bit surprising that the Department of Justice has not sought sanctions against this type of misinformation when the average real estate commission across the country is closer to 5.1%. One of the most misleading impressions that limited or virtual companies imply is that full service agents and discount agents are mutually exclusive-they aren’t.
The second scenario is one which needs more discussion. The premise that a limited service or on-line virtual broker can sell your home is not as questionable as the issue of for how much? Any homeowner wishing to "sell" their home could market it considerably below market value and so long as they were able to communicate to the public that their home was for sale, they would most certainly be able to sell it. How much money they may leave on the bargaining table and the repercussions during and after the close of escrow may linger long after the check has cashed.
Hiring a real estate agent is akin to a homeowner deciding how to do a remodel. As a homeowner you have the right to be your own general contractor; what you have to ask yourself is a) do you want to take that on (do you have the time and ability) and b) are you qualified-as in knowledgeable. You also have the right to hire the cheapest general contractor you can find. But why complain about more expensive ones when cheaper ones are available. Hire who you want–there are options.
See Part Two–Examining the Real Estate Models
Drew & Christine Morgan Morganhomes.com
Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.
Excellent piece. I havn’t been ablr to read it all but there’s alot of great info.
One question I have. At what point do you determine that open houses are mno longer valuable to a seller?
If a home is exposed to the market for a long period of time, buyers (and agents) will begin to think there must be something wrong with the home.
If homes in your area are selling in less than three weeks, and a particular home has been on the market for over three months, it’s a clear indication that something is amiss. It could be that there’s some form of functional obsolescence (i.e. one must enter the master bedroom through a laundry room), or simply the home is overpriced.
In either case holding more open houses to no avail may not be in your seller’s best interest as the home begins to become stale on the market. What’s the harm in that? Further price reductions may have no effect.
The reasons for doing an open house in the first place may no longer exist and the quality of visitors may diminish until the only guests re those who were out for a drive and saw the open house sign.
Drew & Christine Morgan Morganhomes.com
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Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.