STATE OF THE RESIENTIAL REAL ESTATE MARKETPLACE
The general state of the residential real estate marketplace is that any motivated and moderately competent person with an Internet connection has instant access to considerable information for most single family properties advertised for sale anywhere in the country.
Real estate information is everywhere – you almost can’t avoid it. Curious pre-buyers can easily search what’s on the market where they want to live and for how much they can spend. Owners considering selling can get a free market price estimate or do informal comparisons of property sale prices in their neighborhood.
However, when it comes time to take action, most sellers and buyers are processed through the same machinery, which was in place long before our current instant access to massive amounts of real estate information and hyper-connectivity.
The good news for sellers is that the Internet, connectivity, data availability, and assorted computer tools have increased the efficiency of both buyer and seller agents. Agents are able to transact more work in a day than they imagined possible just a few years ago. In order to take advantage of this improved efficiency to increase revenues, agents must fill their dance card with more seller-clients. As there is no shortage of real estate agents, the competition to represent sellers has generated several options for providing seller representation at a reduced cost.
The challenge for owners considering selling their property is how to evaluate these new options to find the one that best fits their situation and goals.
IMPLICATIONS FOR SELLERS
Multiple Listing Service Options
The combination of improvement in seller agent efficiency and the abundance of real estate agents has created a healthy competition for seller listings. This competition has resulted in creation of schemes to reduce seller agent representation fees. These reduced fee models provide the seller with some relief from the cost of sale, but may come at the expense of a reduction in services. In deciding to sell their house using a reduced fee-reduced service, it behooves the seller to understand the implications of the reduced service and other attached conditions prescribed by the listing contract.
Sellers also need to understand how they are drawn into paying the buyer agent’s commission. An artifact of the house sale process using local listing services (MLS) is the general requirement for the seller to pay the buyer agent commission. Sellers grudgingly accept this as an unavoidable and expensive imposition and rationalize that by selling through the established channel, rather than on their own, they will recover the buyer agent commission.
For Sale By Owner
Owners considering selling their own property without representation (For Sale By Owner) should be aware that improved access to information and advertising venues has not yielded better outcomes. The reason for this is that the overwhelming majority of buyers are tied to agents (under a Buyer Agency Agreement) from the outset of their house search. Learn more about selling a property without agent representation at FSBO Guidance.
Direct Cash Sale
Finally, universal access to all public real estate data and information describing owner situation and activities has lead to a surge in both solicited and unsolicited offers to purchase from cash buyers. As with all house sale options, there are advantages and disadvantages to an expedient cash sale. This sale option can be to a sellers advantage under specific circumstances, but must be managed carefully. Learn more about this option at The Quick Cash Sale.
A SUCCESSFUL SALE BEGINS WITH A SOLID PLAN
Technology and competition within the industry have created a number of options for selling a house. Sellers are faced with the daunting task of weighing the pro’s and con’s of each of these options against their specific situation to make the monumental decision of selecting their best option.
Park REI has developed the only analytical model (Home Sale Options Analysis) which provides a side-by-side comparison of the economic outcome of available home selling options. The analysis also evaluates and provides the basis for discussing the match of these options to your specific situation. With these results, Park REI can assist in your selection and implementation of your home sale plan.
The Home Sale Options Analysis provides the structure for working through the qualitative factors, as well as the financial implications, for a range of currently-available pathways to find the right alternative for selling your house.
RUN THE HOME SALE OPTIONS ANALYSIS
The Model results are only a portion of the services we provide. With the Model, Park REI provides access to experienced staff with whom you can discuss results.
Run the House Sale Options Model today and get on your right track for selling your house.