Comments on: Typical is Boring, but When Selling a Home, Effective

By: muthu

muthu — Mon, 13 Oct 2008 18:35:50 +0000

SIX MONTHS AGO, hopeful entrepreneurs seeking to secure financing from generally fit the profile of the quintessential venture capital target portfolio company: brash, innovative businesses brandishing disruptive technologies,seeking to change the competitive landscape in their respective industries—or even spawn entirely new industry categories.
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Muthu

Homes for sale and homes for rent in Albany, GA

By: anisacikal

anisacikal — Wed, 16 Apr 2008 11:49:36 +0000

what a nice article

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http://phreakaholic.blogspot.com

By: Outside Your Market » Blog Archive » The 8 Percent Commission | The perfect source for Real Estate Investors

Tue, 01 Apr 2008 17:45:39 +0000

[...] a contrarian real estate company with Boston offices, analyzed 2007 sales in King County, Washington (which you may know as “Seattle”). It found that homes listed for commissions below 3 [...]

By: BayAreaConsumer

BayAreaConsumer — Fri, 14 Mar 2008 19:26:00 +0000

Of course like any chicken or egg problem it’s impossible to know whether the higher rebates were a symptom or cause of properties that don’t sell well.

Another factor that I would think would come into play is that the higher fees could scare away some buyers because it makes it look like the real estate pros (on both sides) are taking them for a ride. After all, as redfin reminds us, all the fees are paid out of funds provided by the buyer.

But maybe we’re just not being direct enough. What I’d like to see is some way for the seller to channel money directly to the buyer’s agent, bypassing the cut their brokerage usually takes. If I could offer 3% to the buyer’s brokerage, and an additional 1% directly to the agent, I betcha that would get the agent motivated, as it would probably more than double the agent’s takehome.

By: John Doe

John Doe — Fri, 14 Mar 2008 13:22:24 +0000

In my market the majority of properties that offer higher commission rates are in an upper price bracket. Was average sale price considered in this analysis? We all know that more expensive houses take longer on average to sell.

By: Philip Kaake

Philip Kaake — Wed, 12 Mar 2008 17:54:38 +0000

Everyone loves to run statistical data and try and decipher some meaning from it. I can tell you as an agent that I might be intrigued by a higher commission but if the home is not right for the people in style, price or any other factor I am not going to try and talk them into it. That data also does not account for unknowable information like if the selling price was too high to begin with. My answer to the question from a professional point of view is NO. Higher commissions do not necessarily lead to a quicker sale. However a really low commission like 1% to the buyers agent will probably hurt.

By: Weekly News Round-Up | Redfin San Francisco Sweet Digs

Weekly News Round-Up | Redfin San Francisco Sweet Digs — Wed, 12 Mar 2008 16:43:59 +0000

[...] on Redfin’s corporate web site there is a new post titled “Typical Is Boring, But When Selling a Home, Effective.” Ellie Wilkinson writes about the wisdom of sellers offering a higher commission to [...]

By: ellie.wilkinson

ellie.wilkinson — Wed, 12 Mar 2008 16:09:58 +0000

Lane, good point that there is a selection bias here- we’re only looking at sales that closed. And Michael, no, we only looked at the commission paid at closing, as a percent of the list price at closing- so changes in commissions aren’t factored in.

By: Lane Bailey

Lane Bailey — Wed, 12 Mar 2008 15:21:00 +0000

Again, all you guys had to do was ask…

Higher buyer’s agent commissions usually mean overpriced listing that needs help. The sellers are hoping to find a greedy agent that will push a buyer into the property for the extra money they can earn.

Lower buyer’s agent commission is often a property that doesn’t have much margin, so it can’t get negotiated down.

If you want a little better idea of what is going on, you need to look at the expiration rates. Days on Market only covers properties that sell… and if only 10% of the properties in one group are selling, while 30% in another group and 40% in the third group are selling, your findings may not hold true.

By: Michael Wurzer

Michael Wurzer — Wed, 12 Mar 2008 10:32:11 +0000

Did you evaluate whether the commission changed at all during the life-cycle of the listing? In other words, was the higher commission in existence for the entire term or increased after the property didn’t sell?