The only time I listed, I did so for 5% and 3 months. And I stayed on them to make sure they did the proper advertising/marketing. They eventually made a big screw up. They actually gave the keys to my tenant’s apartment to a potential buyer WITHOUT supervision! But it was the last few days of the listing agreement so what could I do?
Definitely negotiate the comm. lower than 6% (I’m in NJ)
Find out what marketing tools (newspaper ads, etc) they will use and WHEN.
See if you can avoid paying a comm. if YOU find the buyer.
What would be some key questions when listing a property for sale and how long should you list for? I have my own ideas but would like some input from some experienced investors.
Posted by Ed Copp (OH) on June 22, 2001 at 17:14:28:
a lot of things, and you are in control of most if not all of them.
Never try to cut the commission going in you will not be taken seriously. All properties offered for sale already have a commission built into the price. If you have been marketing your house yourself, there is a commission in your price and I presume that you intend to keep it if you find a buyer. That is as it should be. You earn it you keep it Never cut the commission, you are worth more than that.
Secondly, never ever attempt to tell the agent how to do thier craft. It goes withour saying that they are smarter than you are here, or at least better educated. If you had the upper hand here then you could give advice, but then again you would have already sold your house and would not need the agent. My same reccomendation would apply to dentists, or anyone who does have the power to make or break your situation.
It is acceptable to ask for an exclusive agency listing. If you do not know what that is you should, if the agent does not know replace the agent. What it is is this, a listing that allows the owner to sell without owing a commission to the brokerage. Generally the price can not be reduced to get this done (part of the agreement), and then this becomes a contest to see who can find the buyer first. Whoever finds the buyer gets the commission. Where most sellers go wrong here is they want, by hook or crook to reduce the commission, and often do this even under the table just so the realtor does not get paid. Often they give the whole commission, and sometimes more to the buyer. Don’t do that. If you do the work, keep the money.
One more thing if your house is not selling take a look at two things, advertising and pricing. If nobody knows it is for sale you have a problem, and if it is overpriced you have a bigger problem. It is unrealistic to expect the agent to solve the pricing problem. Overpriced is overpriced and will go away as soon as the price gets right.