False Assumptions Can Tank Sales (FACTS)
By CJ Holmes, California Real Estate Broker
We all make decisions based on what we think are the Facts. But sometimes what we think is a Fact is actually a Myth. In the real estate market it’s especially important to know the difference between accurate information and misconceptions because the success of your transaction depends on it.
Indeed, you have a right and an obligation to know exactly what to expect from your real estate professionals. That’s the only way you can make the right decisions for your particular situation.
To assist you, here are four of the more common Myths people experience and the Facts that will help them set the record straight:
1. Myth: All listing agents will have similar excellent marketing programs for selling my property.
FACT: Research shows that 85% of agents do one transaction or less per year. As a result, many agents have little experience, insufficient funds to handle an effective marketing campaign, and end up doing the minimum or less (i.e., no photos) and calling their effort ‘good enough.”
Unfortunately that leaves thousands of dollars left behind on the table due to inadequate marketing, incorrect pricing, and ineffective negotiating. Lack of attention to contract details, or unscrupulously selling to a pocket buyer to get the entire commission, also result in less profitable transactions for the sellers.
At CJ Holmes & Company you work with a seasoned Investor-Broker who will guide your sale to lock in profits others leave behind. We provide expert market analysis, proven pricing strategies, and target and entice the correct buyer market. We also give you outstanding photographs, customized professional signage, showcased online listings, multiple search engine exposure, individualized property websties, and capture all buyer calls. Brochures and email blasts to a large buyer database all combine to generate more than quadruple the buyer leads, generate multiple offers and maximize seller proceeds.
2. Myth: Buyer’s agents will show all property to their buyers regardless of what commissions are offered to them.
FACT: As a business consideration, many agents review the commissions offered prior to deciding which properties they will show their buyers. Just as a seller has a choice for what commissions to offer, the agents have a choice of what they will accept and work for.
At CJ Holmes & Company you get what you deserve: the most possible seller proceeds for your property. Since the sales price is directly affected by demand, the best way to enhance demand for your property is to ensure that it is seen by every buyer in the market. And the best way to ensure that is to adequately compensate so each agent is motivated to show your property to his/her buyers.
3. Myth: Bringing many listings to the same agent makes negotiating a commission discount good business.
FACT: An agent should carefully consider what commissions are offered for the effort. Because there is no way for an agent to sell separate properties in “bulk”, there is no way for them to affect any savings in the marketing and transaction efforts for different listings. The listing agent must simply agree to do the same work for less.
At CJ Holmes & Company you get the best market value possible for your property. Our marketing program virtually guarantees the seller will get the highest net proceeds possible in any given market at any given time. We know that listing agents who agree to commission discounts are often either desperate for business or not motivated to do much marketing work, causing seller proceeds to suffer badly.
4. Myth: Agents never really earn their commissions. It’s mostly just free money for them at your expense.
FACT: Some agents don’t do much for the money they receive. Others will more than earn their commissions. It’s up to the seller to understand that all agents are not created equal. Therefore, it will be important to hire the best representation money can buy.
At CJ Holmes & Company you experience quality representation that combines extensive experience with a focus on building the client’s wealth. To this we add our powerful marketing program, significant personnel resources, strong negotiation skills, and excellent escrow management. All of this often produces greater than expected seller proceeds.
Remember, you have the right to receive the best representation possible. But unless you know the difference between fact and fiction you may not be able to determine whether or not your real estate professional is working in your best interest or theirs.
Ask questions and expect answers that make sense. Place your needs and goals as the top priority. If this is the only real estate transaction you will experience in your lifetime, you still want it to count. And if this is one of many real estate transactions, you still want them all to be successful.