Re: let me ask you this… - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 18, 2003 at 10:33:39:
Nice to talk to you.
Sounds like I hit a sensitive nerve in you.
No, of course the listing broker does not try hard to sell the property. The broker does nothing or close to it. I do all the work. Which is all right by me.
The amount of work that a listing broker does can be minimal. That is the case when the seller is a person who is sophisticated in real estate and does not need the “hand-holding” that many sellers need.
Perhaps I should have made that point clear. For the seller who is comfortable with it, the discount broker’s listing is a great money-saver. It may not be right for the typical homeowner seller.
However, I can do most of the services that a listing broker provides. I can pull my own comps and determine a fair asking price. I can easily write my sales flier and put up a “for sale” sign in the yard. I can estimate the monthly payments for a new buyer and can communicate that to them. I can clean and paint the house and otherwise make it presentable. I can look at an offer and see if it makes sense without consulting anybody else. I can easily write my own counter-offer. I don’t have any anxiety about the selling process, having gone through it several times.
And paying three to five hundred dollars? Well, I agree, that is a lot of money. But, the real estate brokers have a monopoly. I cannot put a listing in the MLS myself. So I pay the price. Now, the listing broker actually works something like two hours, as s/he has to meet with me, usually a distance from the broker’s office. And, there is overhead to pay: insurance, car, office expenses. So, I think $25 would be way too low.
Now, the agents bringing in the buyers still have their standard situation related to the commission: 3% when I’ve listed. So there is no disincentive for them to work the listings.
I suppose for many people a listing broker is important. For the experienced real estate investor, I’d suggest that the listing broker is only important as the key to unlock the MLS vault.
Good Investing******************************Ron Starr************