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Privately Selling Your House? Sell Faster and Get More Buyers in the Door [VIDEO & CHECKLIST]

Private home sellers want to know two things: how to get more buyers in the door and how to sell their house faster.

What most home owners don’t know is that over 90% of those currently in serious house hunting mode are already working with an agent. Most of the unrepresented buyers shopping private sales are investors or buyers looking for a house on the cheap.

 

The best and biggest source of buyers is often overlooked by sellers. That source is agents.

The question is, when a buyer comes knocking, and they have an agent with them, are you open to working with them?

 

Two Things that Keep Buyers Away

 

Barrier #1 – Money

Your ‘For Sale By Owner’ sign is up in the yard, and you’re ready for buyers to come knocking. There are other homes for sale in your neighborhood too, you’ve noticed, but they’re listed with agents.

When an agent wants to show homes in your neighborhood, they know that if their client buys a house listed with another agent, they’re getting paid for their work. If their client buys a house that’s privately listed for sale, yours perhaps, the agent doesn’t have that assurance. They might be doing all this work – the research, the time, the tanks of gas – for free.

So… if an agent sees two houses that match their buyer’s criteria, one is listed with an agent, and one is for sale by owner, guess which one they’re more inclined to show their buyer?

The one they know will pay.

 


How to Overcome It:

Are you willing to pay a real estate pro if they sell your property? If not, expect to continue to miss out on represented buyers. If you are willing however, here’s how to handle it (without having to list your property with an agent): There is a form called a Fee Agreement Between the Seller and Buyer’s agent. Don’t worry, this is not a listing agreement.  The agent has no permission to put up their for sale sign in your yard. You do not have to list with an agent in order for them to complete the sale.

If you and I sign this agreement it means I’m representing my buyer, not you, but you are willing to pay me if my buyer has an acceptable offer for you. It’s a standard agreement.

 

If a private seller would tell an agent right away “I’d be willing to pay you X% if you write an accepted offer” the agent would  be relieved because they know they’ll get paid. They would also know you’re serious about selling, and that you’re cooperative and willing to communicate with them to get the job done.

That’s a welcome sign for agents to bring buyers.

 

Barrier #2: Lack of Information

When I show a listing to my buyer that’s listed by another agent, I have access to all the property information that’s needed. I know it’s the agent’s job to supply all that, and they know what kind of info to provide and where to get it. Often, private sellers don’t know the info needed or where to get it. That means more work for the buyer’s agent.

I recently SOLD a listing that was online with a private sale company and was really surprised at the lack of information the seller had. They had paid the fee, gotten the sign, and were apparently equipped by the company to sell, but this company didn’t provide forms to seller, inform them which forms they’d need or where to get them, or even help them understand why all these legal forms were necessary. They gave instructions  online to real estate agents to use the fee agreement I mentioned earlier, but don’t tell the seller what it is or how or why to use it. Which bothered me on the seller’s behalf. They paid good money to be no more educated or informed than the guy down the street with a dollar store “for sale” sign. In addition, the company did not even send someone to view their home to give them an estimate of value.

I was also frustrated on my behalf because I had to educate the sellers on the what, how, and why, and explain every word on the form. Honestly, I kind of resent coming to a private seller in need of information and then being expected to do all the work and research the listing agent would have done. I dished out $143.00 to get information. (not likely to be willing to do that again)

It would be easier to just go sell a listed house.

And that’s exactly the kind of thing that is a barrier to buyers.

 

How to Overcome It:

This is a fairly simple fix, that I’ll illustrate with a story first.

The other day, I showed another privately listed house. Before I brought my buyer to look I asked the sellers to please have a look at this video I’d made where I talk about the property information we’d need from them. When we arrived, they had typed up all the info and had everything waiting on the counter for us. They were clearly cooperative and prepared; it was a very pleasant experience! In fact, it encouraged me to want to sell it.

 

Want buyers? A Couple of Tips

  • Real estate agents are not the devil. They are not out to get you. If I’m bringing a buyer and showing you forms, I’m not trying to get you to sign your soul and children over to me. I’m trying to help you sell your house and get money. Keeping an open mind toward agents will help them keep an open mind about working with you too
  • If you have had a bad experience with a real estate agent, I’m sorry that happened. Try not to punish the rest of us though. I know a LOT of high integrity, fantastic agents who are good people. Keep trying. You’ll find one.
  • If an agent brings a buyer, expect to pay. If that agent then needs to do a lot of extra work to help you sell your house (like a listing agent normally would), expect to pay even more.

 

 

12 Things Buyers (and their agents) Need You to Provide

  1. A copy of your most recent tax bill
  2. Get the hydro company to give you a printout of the last year’s hydro bills so the buyer has verified utilities costs
  3. Get a Property Disclosures Statement from your lawyer and fill it out.
  4. List of service providers (internet, septic tank, garbage services, plumbers, electricians, etc.)
  5. Survey or building locations certificate (or, if not available, provide the property dimensions and location of boundaries)
  6. If it’s a rural property, let the buyer know what type of septic system it has and if it complies with the Manitoba Onsite Wastewater Management Systems Regulations.
  7. If it’s a rural property, identify the water source and whether the well is shared or owned.
  8. A copy of the Well Agreement if it is a shared well.
  9. Does the property have knob and tube wiring? Aluminum wiring? The buyer needs to know this, as it affects their insurance.
  10. If the property has a woodstove, was it WETT inspected? How long ago?
  11. Does the property have an alarm system? If so, with which company, when does the contract end, what are you paying, and are you willing or able to discontinue the contract with short notice?
  12. What year was the house built? This is critical because CMHC needs to know. Missing crucial information – even small details like the age of a home – can cause a delay in financing.

 

Here’s that video, too, that outlines this and a bit more.

Tina Plett, Sutton Group-Kilkenny Real Estate

 

 

Home Sellers On My Heart (And the Secret Buyer Advantage Most People Aren’t Using)

 

Normally, getting an offer to purchase on your house is exciting. After waiting all that time for the sale, finally there’s light at the end of the tunnel! Waiting for your house to sell was hard. But do you know what’s even more difficult? Receiving an offer that’s subject to the sale of the buyer’s home. It’s waiting for the buyer’s house to sell before they can buy yours.

My heart goes out to every seller in that stressful, helpless state of almost-sold-but-maybe-soon limbo. It’s a hard place to be.

Recently, my seller client had two offers on their property. Both were subject to the sale of the buyer’s home. An offer was accepted – which sounds exciting, but – then the anxious wait began. They waited for that buyer’s house to sell. They waited, waited, and waited some more. It was anxious for me too, because there’s nothing I can do to help them sell their house. I had no influence on the advertising or marketing that is or isn’t being done for their home or the number of people who are shopping for that buyer’s kind of house. All my house-marketing prowess and fancy tools don’t help the other agent’s client. So we waited…

The weird thing is that those buyers are sellers too, in that same limbo of waiting for their own house to sell, and probably getting the same kinds of subject-to-house-sale offers Emanuel others get. So it can become a domino effect of everyone waiting for everyone else’s house to sell.

And I get it. If I’m wanting to move, I’d want to find a place before selling too. I understand. Then again, after seeing how it all shakes out, maybe I wouldn’t. Those kinds of arrangements are extremely hard on the seller. The tension of living in that almost-sold limbo is unreal.

The Secret Advantage Buyers Can Have

When many offers are conditional on the sale of the buyer’s house, and when that common experience is stressful, someone with no such condition can pretty much rule the world. Well, at least they can have their free pick of what to buy, and maybe even slash the price a bit.

Because any offer that doesn’t make the seller wait for months and months is something sellers (and their agents!) are EAGER for. They’ll LEAP at it. Every single agent is going to prefer an offer without that condition. If you want sellers to accept an offer subject to the sale of your house, expect to pay top dollar for the inconvenience. If you don’t put them through the wait of your sale though, they might take a slice off the price for the certainty of that offer over the others that may or may not end up going through.

It’s a powerful advantage for a buyer to have.

The advantage comes at a cost, though. It means having to sell before buying.  If you don’t find your next home quickly, it might mean moving somewhere temporary while you shop, and moving a second time into that final home.

Why would buyers want to sell first?

The advantage to buyers for this two-move inconvenience is massive. First, it frees them financially and gives them time to search at their leisure. Secondly, it gives them the power to make an offer others can’t – one without conditions – the offer every seller and agent WISHES for. Not only that, but it also gives a competitive advantage over other offers.

Let’s say the house a buyer wants already has an accepted offer subject to the sale of a home. You can put in an offer.  The first offer will then be given 48 hours to remove their condition. It’s highly unlikely that condition will be satisfied in 48 hours, so yours will be the one left standing. You win!

Oh – and let’s not forget that that kind of offer is a powerful negotiating tool to hopefully get the purchase price down a few notches!

Emotional consequences 

You find the property you want. This is it. It’s the one. It has everything you want. Everything pales in comparison. So, you put in an offer subject to the sale of your house. Your house takes a while to sell. Another buyer comes along and writes an offer and they do not have a house to sell. You are given a notice to remove your conditions within 48hrs. You cannot afford two mortgages. You lose the house of your dreams. You don’t find another property like it. LOSS. Now you have the emotional consequences of dealing with losing your dream home.

The bottom line is that buying and selling is a stressful process either way, but you can choose which stress you’d rather: the stress of waiting for your house to sell while you wait for your buyer’s house to sell in order to satisfy conditions on your offer , or the stress of selling first, and risking moving twice while you search for that just-for-you home.

My guess is that you are also more likely to cave to a lower offer on your house when you are feeling pressure and at risk of losing the home you want.

If you’ve got to endure stress anyway, it may as well be with a big advantage in your back pocket.

 

Have you ever sold before buying? Would you consider it?

When Parents Decide to Downsize (a Peek into my Family Life)

“I want to move while I still have a sound mind,” Mom said. She was in her sixties, and she and Dad knew they wouldn’t be able to stay on their country property forever. “I want to be able to decide where we live and what we’ll take with us and what we’ll get rid of when it’s time.”

 

My parents had lived in the same homestead they’d raised us in. As adults, now with our own lives, spouses, children, my five younger siblings and I would return to that familiar place we once called home and celebrate together. Christmas. Easter. Thanksgiving Day. We sat with our own children around that same table from our childhoods – the one we did homework on and had breakfast at before heading off to school. We sang in four-part harmony, with some playing guitars, just as we did when I was a child. There’s something special about connecting our pasts with theirs, overlapping memories like that.

 

But my parents knew it couldn’t last forever and began to prepare for their inevitable move. They took it slow. Over months and years, they took time going through their belongings and preparing for the estate auction sale they’d eventually have.

 

Finally the day came. It felt strange to watch their possessions be sold piece by piece like that. The old familiar coffee table we’d laughed around, the familiar serving dishes we’d all eaten from together. The paintings I’d thoughtfully stared at as a child. It felt weird, but it was also good for us to be there – I think it gave us a sense of closure and helped Mom, Dad, and the children and even grandchildren with the process of letting go.

 

That was ten years ago. They bought a condominium in town and have embraced the new chapter of their lives, diving right into the community life of living in town and in a building with others. I love seeing them take hold of it. I love having them near enough that I run into them in a local restaurant or see them go for a walk when I’m driving in town.

 

We feel the change the most when we try to get together.

We won’t all fit in a condo suite, after all.

 

It felt like a jarring difference at first to have to rent a facility for gatherings or meet in someone else’s home. But it quickly became the new normal. At Christmas my parents always rent a place for us to get together. They make sure we have a lot of space so that we are able to do some sort of activity together. Usually there’s a place to play sports. They make sure there’s enough room for everyone to eat in one room. Most of all there has to be a place where we can pull out the guitar and sing our hearts out. As soon as we gather around the table to eat or around the guitar to sing songs in that familiar four-part harmony, we once again feel at home together.

 

Home, we discovered, was never a place; it was the happy experience of being together.

 

Letting go doesn’t have to be as difficult as one might fear. Especially when we have the blessing of living near each other and being able to get together and love each other.

 

We are blessed to have the memories of the past and the old homestead. We are even more blessed to continue to spend time together and watch our families grow.

 

What ‘new normal’ have you experienced, and what felt like “home” to you in it?

The Blessings of Hip Surgery (When ‘Out of Your Comfort Zone is an Understatement)


I sat alone in a room with the clock. Just me and the clock. For hours each day. Its loud ticking reminded me of every mind-numbing second that slipped by as I recovered from hip surgery.

If you’ve never had hip surgery, recovery basically involves one simple instruction: whatever you do, DON’T BEND! A 90 degree bend – even to just sit on a chair – could pop that thing out of its socket and next you’d be blinded and howling by the searing pain. Or so I imagined. I didn’t want to find out, so I didn’t bend.

(Think for a moment of how many times you bend in a day, by the way. To sit on the couch. Use the toilet. Get in a vehicle. Even eat a bowl of soup. Even with some handy-dandy tricks and tools at my disposal, it was a challenge, folks!)

So I lived in our living room, laid back in our recliner or on the hospital bed we had brought in special for me. Once I got over the weird feeling of living in the main room, it was actually pleasant to be surrounded by our walls of windows and enjoy our gorgeous country view anytime.

There was a problem though.

I had to be still and quiet and alone for most of every day for weeks.

Here’s the thing. I’ve always been the busy, hard-working type, even before my single-mom years required it. I love to work hard, bustle from task to task, and be highly productive. I’ve also adored being with people.

Sitting by myself unable to work nearly drove me plumb insane that first month. I wished more people would visit. I desperately wanted to climb into the car and grab a coffee with someone. Or show someone a house. Or do… something. With anyone. The walls seemed like they were closing in on me some days and I felt like life was passing me by. It was difficult. Uncomfortable. I started to hate the sound of that clock announcing every second I was missing out on.

After a couple of weeks though, something weird happened.

I began to enjoy the quiet. Solitude grew on me. The joy I discovered in that peace and calm was beautiful, but it also frightened me. Was this the new me? I was turning into a hermit, and I liked it. Would I even be able to enjoy the bustle of my work and the busy social calendar once I returned to work? When I would think about work, I could somehow only remember the long hours and stress I would return to. I wasn’t so sure I wanted to go back.

Over a few months, I returned to work. I was pleasantly surprised to discover that my love of my work and people remained intact. In fact, I think the whole hip surgery and recovery deepened my enjoyment of work and my appreciation of people.

The blessing of hip surgery for me was the gift of time to rest and refresh – something I didn’t realize I needed so badly and didn’t know how to do. Recovery forced me to stop and smell the daisies.

The blessing of surgery also was to remind me what I love about my work – the people.

When a person is in a great deal of constant pain, it’s difficult to remain positive. Heck, it’s difficult to even SEE the positive. Now that the pain is gone (thank you, Lord!), I have eyes to see the good stuff again – and that good stuff is always the people I get to work with.

There’s something deeply moving and intimate about helping that young married couple find a home. She’ll have a tummy round with expectation, and their eyes will also be wide with expectation as they search for the home they will grow their family in. Create memories in. Make love in. It will be their own little nest, and I adore being welcomed into that very personal experience. It feeds my soul.

They say we don’t appreciate what we have until it’s gone. I would agree. My hip replacement journey helped me appreciate my health, my career, and the people I get to serve every day. Thankfully, it wasn’t gone for too long, and I get to return to the health and work and people I love.

Name a time you’ve been pushed out of your comfort zone.
Did it help grow your appreciation?

Tina Plett, Sutton Group-Kilkenny Real Estate

From Zero Computer Skills to Tech Savvy in a Few Short Years – If I Can Do It, You Can Too!

 

Eight years ago, I had never sent an email.

Or owned a computer.

I’d never had internet or been on social media.

(Yes, there are people who choose such and can even survive like that.)

Then I decided to make a major mid-life shift and venture into the great big career of real estate, which meant having to do all of those things every day. Eek!

I knew going in, my number one weakness was that I had zero tech skills. Like, none. I remember those first weeks learning how to use a computer. We’re talking about learning simple things like where to find the on switch. How to send an email. How to Google search something.

One day, at the first office I worked at, two people came back from a conference saying Facebook would be key to our industry in the coming years. So I started an account. I never realized how important it would be all these years later.

I smile when I think about how little I knew because now, people actually seek me out for tech help. Peers ask me how to market online, how to use social media, and how to use apps for business like I do. Funny. Just eight short years ago I didn’t have a clue.

But I’m stimulated by personal growth and energized by trying new things, so it was a joy to chase down knowledge. I took courses, pursued knowledge, and practiced what I’d learned and became good at it.

I was approaching fifty years old when I made that major career change. I was 46 years old when I used a computer for the first time. And guess what. All those things they say about old dogs and new tricks? It’s LIES! All lies!!

And this is the reason I’m telling you this at all – my hope is to release you from any lie that’s holding you back.

If deep inside you’re languishing in a circumstance you hate or secretly want to try something new or weird, but are too afraid, I desperately want you to know you don’t have to be trapped!

It’s scary to take those first steps into uncharted territory, trust me, I know!

But when you walk through the fear, even if you’re trembling with each step, you’ll come out on the other side and discover a load of good stuff. You’ll be glad you risked it and tried that new thing.

 

What’s one time you faced your fear and came through to the good stuff?

 

Tina Plett, Sutton Group-Kilkenny Real Estate

You’re Never Too Old to Make a Change (Celebrating 8 Years!)

 

Eight years ago I made a massive career change.

I was 46 years old.

When I confided in a friend about my desire to shift careers, she said “Do it before you’re fifty. In your forties people see you as experienced. After your fifties, starting on a new path is more difficult. People see you differently.” I took her advice and started looking for new opportunities.

Drawn to careers in which I could help others in need, I sought out social work type vocations. Things like working as a health proctor or in a women’s crisis center. I even looked into becoming a social worker.

Employers said the weirdest thing when I applied though, “We know what you would have been making in your past profession. You won’t be satisfied with what we pay.”

Stunned, I thanked them and left office after office. How could they possibly know what would satisfy me? I was seeking work with meaning – something that satisfied my soul – not some dollar amount. I wanted to pour myself out to help people; whatever it paid was secondary.

Then I came upon the profession of real estate – a unique way I could help people with an important need and connect with them in a meaningful way. (Little did I know the work would involve a lot of the emotional elements of social work I’d initially sought.) It helped, too, that my main concern wasn’t money because that first year was a rough ride!

Here’s the funny thing you might not believe.

8 years ago, I’d never sent an email.

Or turned on a computer.

I’d never sold a home and had no clue how to market online.

Now, after years of learning and trying to keep at the front of new trends,  I have a reputation for being tech savvy. People seek me out to ask me how to use an ipad for business  or how to leverage a blog or social media to connect with new clients.  Amazing what can happen in 8 short years!

I have to stop right there and encourage you

If there is a step you’re afraid to take or a change you’re afraid to make, I’ll be the first to tell you – it’s possible. Do it! Take a risk! If I can become tech savvy when my starting point was looking for a computer’s on/off switch, I’m telling you – you’re more capable than you think.

 

Since I’m celebrating the 8 year mark, can I just spend a minute with you sharing my gratitude?

 

People

I’m so thankful for the opportunity to meet people from so many different countries and circumstances. This month I sold a home to a couple who moved here from Mexico City. To be on that journey with them – to witness all the excitement and joy of starting their new life in a new country – was an honor.

The newlyweds, empty-nesters, and growing families – many of the people I’ve connected with – have been a blessing to me. It’s hard to express the joy one feels, being invited into the personal, sometimes even intimate experience of selecting a home. I can tell you though, it’s the people and relationships that fill me up and satisfy me and are my driving reason for what I do.

Knowledge

I look at my thick binder full of legal documents, and I’m grateful I know what they’re all for. That first year, boy, I’ll tell you… If anyone had handed me this stack of paper and said, “Here. Know this. All of it. Know what they do, when to use them, and what every legal line means,” I might have run screaming for the hills.

Thankfully, no one did that. I learned in steps and pieces, like we all do, and now I’m so glad I don’t have to wonder anymore, “What the heck is THAT paper for?” Knowledge IS power!

Help

As my business grew and I became super busy, I began to lose my personal life to real estate. Weekends, days off didn’t exist for me in those years. It took over my life and I was starting to feel burned out. My friends and family were getting lost in the chaos. Something needed to change.

I needed help. Really, I needed a day off!

That’s when God directed me to agents Wes and Clare, who helped me immensely, providing trustworthy staff to take my workload one day a week. I began to enjoy the thrill and joy of a regular weekly day off.

More than that, I also learned a lot about leadership from them, and was greatly encouraged. It can be a lonely business and sometimes you need more support than you can muster on your own. Self-motivation is necessary for this line of work, but we’re also created for relationship and we need each other.

For the help of Wes, Clare, Yvette, Eniko, and many others who have contributed to the success of my career and family life, I am deeply grateful.

 

Returning from Surgery

Oh – and then there was my hip surgery! For several years, hip pain made my work difficult. I clenched my jaw and carried on though, because what else am I going to do? That’s life.

After surgery, as I healed at home, my life became quiet. I wasn’t dashing all around the province all day like I was used to, and I wasn’t talking to fifty or more people every day either. Life became quiet and still.

At first, it drove me nuts. I like to be busy and be with people. Then after a few weeks, the quiet grew on me and I savored the peace and solitude. I started to worry. Was this the new me? Would I be able to enjoy bustle of work when I came back?

Now, recovered from surgery and back in the swing of things (and feeling awesome, by the way!) I’m connecting with people every day again, and I LOVE it. Every time I connect with someone, I get that jolt of joy and love my work all over again.

 

A lot can happen in the small space of a decade!

I hope you’re encouraged by some of this. You’re not too old, to post-surgery, to unknowledgeable, or too alone to make a change.  I was all of those things and then some.

The only thing that might hold you back is if you’re too afraid.
At the risk of sounding cliché, don’t let fear keep you from the good stuff on the other side.

Blessings,
-Tina Plett, Sutton Group-Kilkenny Real Estate

Featured Cover Agent in Top Agent Magazine

 

My story was featured in the Top Agent Magazine On the week week of April 23, 2018. You can see the article when you click on the image above.

Tina Plett, Sutton Group-Kilkenny Real Estate

What is the Difference Between a Deposit and a Down Payment?

 

In my years as a real estate professional in Steinbach and much of SouthEastern Manitoba, I’ve helped many people navigate the myriad of confusing things that come up while shopping for their next home.

One of the most common questions is, “What’s the difference between a deposit and a down payment?”

 

Allow me to help clear that up.

 

What is a Deposit (and Why should I Make One?)

A deposit is money that accompanies the Offer to Purchase. Basically, it’s trust money, the point of which is to show that you are serious about offering to buy the house, and can be trusted not to waste the seller’s time or somehow torpedo their efforts to sell their house to others. Your money says you will not change your mind and, if you do, you’re willing to compensate them for their wasted time.

What Happens to the Deposit If Your Offer is NOT Accepted?

Nothing. The cheque will not be cashed. It will be returned to you.

What Happens to the Deposit If Your Offer IS Accepted?

If your offer to purchase is accepted, the Cheque will be deposited into the listing broker’s trust account. Later, when the deal goes through and the purchase becomes official, the funds are forwarded to the lawyer’s office and distributed toward the purchase price according to standard practice.

TIP: Bigger deposits give you an advantage. The bigger your deposit, the more seriously the Seller will take you and your offer.

                What happens if they deposit our check and then we can’t meet the conditions on the offer?    (What if we don’t get financing? What if the home inspection fails? What if…?)                   

We will fill out a simple form requesting the deposit to be released and the funds will be returned to you.

 

 

What is a Down Payment?

The down payment is what your lender will require of you before approving your mortgage. This is between you and the lender and does not involve the real estate agent or seller.

For a traditional mortgage you will need 5% of the sale price for a down payment.

When arranging your down payment, if you can manage to put down 20% of the purchase price (or more), you will avoid the cost of paying an insurer like CMHC or Genworth.

If you do not have sufficient down payment available and you have a steady job, stable income, and a good credit rating, I can hook you up with a mobile specialist who has different products available and you may possibly be eligible to buy without a full down payment.

 

There are LOADS of other questions that crop up in real estate.
Good news – I have some awesome resources to set you up for a successful and pleasant buying experience.

Check out my HomeBuyer’s Information Package HERE 

Tina Plett, Sutton Group-Kilkenny Real Estate

 

5 Questions We’re Dying To Ask About Real Estate Commissions

 

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Talking to Real Estate agents about commissions can be kind of… uncomfortable.
To discuss commissions with an agent can feel like asking them to hand over their paycheck for inspection and approval. It’s much easier to just swallow the questions and go with whatever the agent says, isn’t it?

But I know you still have those questions. And I care about helping you make informed decisions. I hate seeing people get manipulated or taken advantage of just because they don’t know the facts.

So let’s do it. Let’s talk about some of those burning questions about REALTOR® commissions.

What is the going rate for commissions? You won’t like this answer. It’s negotiable. One of the considerations is what competing sellers are offering as a commission to competing agents who may have a buyer for their property. In areas where properties frequently sell in a week, the commission my be lower than in an area where it frequently takes months. The main reason for this is that the longer a property is listed, the more it will cost the agent to market it. Those costs need to be reflected in the commission. I have personally charged as low as 3% for a family member (we still offer 2.5% to the selling agent) and as high as 7%. For the record, if I did not give birth to you, I will absolutely not list as low as three percent for you regardless of where or what you are selling!

Why do commissions vary so much?
There are a few reasons for the variation. One is local market. Other considerations are:
-What the agent offers. If no marketing is planned, the commission may be less. More marketing will cost the agent and need to be paid for out of their commission.
-Greed. Whether it’s wanting the high dollar (through a higher commission) or to get the most listings (perhaps through a lower commission), it’s a factor sometimes.
-Negotiation. Sometimes a client can negotiate a commission up or down to get the services they want.                               -There may be more than one person being paid to work for you. Some teams have administrative staff working behind the scenes that also get paid.

How much do Realtors Make?
Not as much as you think. The commission charged is shared between broker of the listing agent and the broker of the selling agent. Often it is shared 50/50. (At 5% that would leave the broker with 2.5%) The broker then pays the sales staff a percentage of that amount. That percentage varies depending on the office policies and agreements between office and agent. Most work on a commission split which can be as high as 50% of their paycheck! Subtract all the advertising and marketing expenses (professional photography, advertising, signage, etc.) incurred to sell the property. (This can range from hundreds to thousands of dollars)

Out of what’s left, the agent must pay mandatory licensing fees, franchise fees and, very often, they are also required to pay rent and fees to their broker. You know – office space, etc. Then there is just the everyday business expenses like vehicle insurance, car payments, phone bill, internet, fuel, office supplies, etc. Do the math. These kinds of numbers are why it’s a dog-eat-dog business. This is the stuff that sends a lot of newbies packing in their first year.

When all is said and done the Real Estate Professional may only net approximately 20%-30% of the gross commission collected at the end of the year. Hopefully that will be enough to cover the income tax payable to the government.

Are Commissions negotiable? Yes, but if you’re going to negotiate, I have three words for you. Do it carefully.
It can be risky to demand of and stomp on someone who you expect to work for you.
Not unlike offending the dentist with all the sharp tools in your mouth, or blasting the restaurant cook and demanding a new meal, making huffy demands is risky.  What you don’t know about commissions – and the message they send to other agents – is dangerous to your deal.
Basically, if you’re going to negotiate, basically be respectful. Real estate agents are people too. And some of them really do have your best interests at heart.

Why should I pay that much just to have them sell it in a week? Review the answer to “How much do REALTORS® make?” Those numbers all apply whether the property sells in a week or 10months. The only difference is that the 10 months didn’t come by and eat up all the agent’s profits. Good for them. They got paid.
So did you. Go celebrate!

HINT, HINT, NUDGE, NUDGE…Perhaps it may be important to ask the question, “What services do you offer at that commission?” There is a vast difference in what services different agents offer at the same commission. You can pay the same commission to many agents but you won’t get 5 star service from all of them.

Don’t make the mistake of being so focused on how to get the lowest commission just to find out that you got no VALUE for the commission. 

In conclusion, most Real Estate Professionals will charge you the same Commissions as the competitors. You can hire a rookie or an experienced agent for the same commission. It would seem more logical to look for the agent who will do the most work for their commissions.

Of course you will want to be sure that their work results in sales.

So, ask.

I will make it easy to ask us. You can request our digital pre-listing package ,otherwise known as a resumé, to learn about our services and qualifications.

Tina Plett, Sutton Group-Kilkenny Real Estate

 

 

A Gardening Lesson from Dogs

 

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I love getting dirt under my fingernails in the flower garden.

And the way dirt crumbles in my hand.

I especially love the way weeds pull right out sometimes, root and all.

Recently, when I was down on my hands and knees digging in the dirt, my little dog joined me. At first, she supervised nearby for a few minutes, possibly to see what treasure I would unearth. As I continued pressing my hands and tools into the soil, pulling out weeds, and humming, she decided to dive in right next to me.

She claimed a patch of weeds right beside me and set her paws to furiously digging. Dirt and leaves flew everywhere, even onto me. I paused my weeding to watch (while guarding my eyes from flinging flecks of dirt). She worked and worked, finally digging a little pit for herself. Then she stood in the middle of it and plunked herself down, nestling as deeply as she could into the cool earth.

I smiled, petted her, and returned to pulling weeds.

In the quiet, I thought about how she and I were both digging in the garden but for different reasons. I want the flowers to be visible and not crowded out by weeds, and she wants a cool place to sit.

We all have different motivations for doing what we do.

Many people can do the same thing, but for different reasons.

I’m a real estate agent, but my why might surprise you.

It’s not for the money (It’s not as much as you think anyway)

It’s not for the glamour (People tend to see agents more as salespeople than industry professionals)

And it’s definitely not for the primo hours and awesome vacation times (Days off can be hard to come by. Heck, attending a wedding uninterrupted can be hard to come by!)

No, I’m an agent in spite of all these challenges.

Because I’m a helper and encourager at heart, and I love, love, love to help people find their perfect-for-them home. As an agent, I get to protect people from pitfalls, walk them through scary and difficult circumstances, and make them super crazy happy.

Those are the things that satisfy my soul that I count as excellent results, and that drive me forward each day.

What motivates you in your work?

Tina Plett, Sutton Group-Kilkenny Real Estate

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