You know the saying:"If it sounds too good to be true, it probably is".
So, how do you know which real estate broker is going to help you take away all of your money versus leaving your money trapped in the sale process? The truth is simple but not always simple to see clearly. Here is what Ron Howard has found as a real estate executive overseeing thousands of transactions, as a manager overseeing hundreds of transactions a year, and as a real estate broker selling hundreds of homes:
People who hire real estate brokers sometimes choose a real estate broker who charges lower fees, sometimes only 1% – 1.5% lower, and end up paying more money out due to the effects of poor negotiations, bad attention to detail, and minimal marketing. Once this is set up poorly the buyers just do not understand or see the real value of the house. This low quality marketing costs a seller more than they are trying to save because the broker spends less money marketing the home, spends less hours actually working on the home sale, yet, the seller receives less NET money but still pays nearly the same commission. Here are a few key areas to watch out for as a consumer:
- Broker "A" cuts costs and takes photos personally, with an average camera, instead of hiring a professional photogrpher as Broker "B" does. This alone can set up a $10,000.00 and higher-dollar mistake because the home just looks bad online and virtually all buyers look online.
- Broker "A" puts the home on RMLS and not much else versus Broker "B" who actually spends time and her/his personal money to market the home very specifically. Broker "B" may actually do things like:
- Establish a list of the most likely brokers from all companies who sell similar homes and personally markets to them.
- Instead of using "mass mailing/emailings" that are low quality, Broker B creates unique marketing and directly contacts the most likely to be interested brokers from all companies.
- Hires a professional photographer AND creates high quality materials that present the house to the home's full potential.
- Has several other specific marketing actions that present a home that confidently shows the highest value instead of "list & wait" average approaches.
- Broker "A" overall is a well-meaning, good person but just does not have, or does not believe in professional marketing. Maybe this broker can't risk, or will not risk, the time, energy and money UP FRONT while Broker "B" is confident in the best price outcome and is willing to risk time and her/his own money to give the home the best chance of selling at the best possible price.
The reason all of this is so important is because the approach of Broker "A" can fail to defend the value of a home. The risk of seller loss is due to establishing an unintended gap between asking price and perceived value, causing lower offers and creating harsh negotiations that do not encourage buyers. Appraisers, lenders, buyers, brokers all see the home worth less than it is simply due to under-marketing the home including under-preparing the home for marketing. Under-performing literally can cost sellers a lot of money even if the commission is nearly the same amount. Better brokers may spend more time and money to insure a seller takes all their money with them instead of leaving money in the transaction.
If you would like to interview Ron Howard to see more details about selling for the highest possible price, please contact Ron at firstname.lastname@example.org and 503-413-9901