It’s not always about a lower price, although it is nice. Sometimes it is about getting a real estate broker to even notice a property to get them to sell it. You can achieve this with a two-prong approach – a price reduction the benefits the buyer, and a commission bonus in addition to regular commission to the agent to ensure the property at least gets shown.
Agents have biases…and sometimes think they know everything. But if you sweeten the deal a bit, sometimes an agent can get out of their own way and show a property that is perfectly ideal for their buyer client if the agent would just stop thinking they always know best or know with 100% certainty if a property is going to work for their client or not.
Now, if the buyer says “NO TOWNHOMES” then fine, maybe don’t show them a townhome (although I always said no to condos and townhomes and then somehow bought a condominiumized townhome 5 years ago – which is why I have the attitude I do about this whole issue). But I actually had someone show one of my other listings yesterday that for the same price was a ground floor view condo with attached garage and the agent’s feedback was “They’re looking for a townhome…” You can bet that I sent her info and this video, stat!
So how does a two prong approach work? A price change is obvious – and the buyer saves money. But the additional strategy was to be sure to offer “Full Commission” (a % that many companies have an internal policy to sign listing agreements at), THEN offer even more if the agent could bring an acceptable offer by a certain date. This particular property? Currently the Selling Office Commission is $6,508.50. The typical agent is only getting a portion of that, depending on the company and what they negotiated when they joined the office. If it were I selling this home I would be getting a check close to $5,000 after the company’s portion plus some incidental expenses and insurance was deducted. The bonus? The property owner here has agreed to pay an additional $2,000 straight to the buyer’s agent at closing, and that’s not anything to shake a stick at. Suddenly my almost $5k went to almost $7k, and that’s going to pay my bills for a couple months.
If you have a tired listing, think about blending your approach and splitting the seller’s sacrifice between the buyer and the buyer’s agent. It’s a win-win-win, for the buyer, the seller, AND the agent. Who might not have ever looked at or shown the property if that $2,000 carrot wasn’t dangled out there in the first place.