need advice about changing realtors

mamerjjMay 21, 2009

My mom's home is up for sale in the estate. It has been with a realtor for 2 months. Two showings and lots of hits on the virtual tour. We went with this realtor because their are 4 executures (daughters) and he agreed we would all have to agee on any offers. Two of the daughters wanted to list it at 69,000 with a realtor. I agreed to go along with my sister with the realtor we have now. He listed it at 80,000. I figured you can't go down if you have no where to go. The realtor now wants to drop the price to 75,000 for a month and at the end of the month to 70,000. He wanted 7% and says no to dropping his commission. The other realtor says 6% but will not assure us of agreement of all 4 daughters with any offers. This is a rural home and does need some updates. http://www.thinkrealtygroup.com/property/property.asp?PRM_MlsName=MIBOR&PRM_MlsNumber=2915996 Not sure this link is done the right way. Any advice would be appreciated. I am so tired of all this process. Thanks

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Billl

A realtor works for you. If you don't like there terms, do not hire them! They should be making recommendations to you, but you should obviously get the final say.

As for 7% - get real. Business is slow, so you shouldn't be pay over standard rates. 2 showings in 2 months means the realtor isn't doing anything to get people into your house. Why pay extra for that?

As for the listing price - again, you should determine that. Any realtor listing at +15% over market in these times is incredibly foolish and shouldn't be considered. Most people looking for a house check out the new homes on the market each week. They are not going to come back to your house if you overprice and then are forced to keep dropping it. In this economy, you should be priced at or below comps to generate traffic.

As for the link, I would highly recommend you stage the place. I really couldn't tell what some of those rooms were supposed to be. Between the 4 of you, I'm sure you have enough extra furniture that you could put the basic pieces in to define the rooms. Also, you should remnove the curtains and let all the light in that you can. If any of you are in town, you might consider a quick coat of paint to give the place some life.

    Bookmark   May 21, 2009 at 9:55PM
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imagardener2

Realtors hate estate sales or any sale requiring more than one or signatures because it's more work for them.
A realtor should REQUIRE all 4 daughters/owners to sign off accepting an offer. Otherwise it makes settlement iffy. Maybe they have experience that the other owners will take the money when it's in front of them at settlement. Just make sure that in your agreement with the realtor that you won't have to pay their commission if all 4 won't sign off.

As far as the commission I wouldn't sweat 1% difference if the realtor is WORKING hard to get it sold. Most I've dealt with are lazy (sorry to all you hard-working realtors but you know it's true).

When real estate was flying high you could negotiate the %. Now that it's hurting they want more money.

Good luck.

    Bookmark   May 28, 2009 at 11:43AM
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ncrealestateguy

First, you priced it too high. There is lots of room from $69,000 to go down if you have too. Pricing it high to start, knowing that you are going to lower it in the future is silly marketing at best. Like the above poster says, price it a little below comps if you want to sell.
Two showings in a month could well be above the average. Remember, the RE market is at its slowest time in 20 years! Do not have unrealistic expectations.
Do not drop the price in stages. Drop it all now.
Commission is negotiable, at the time of signing, not after.
Your agent is not the one that determines who has to sign the contract to make it legal. Call an attorney to find out for sure, before you do get an offer.

    Bookmark   May 29, 2009 at 8:42AM
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Carol_from_ny

Which part of the country are you in? It makes a huge difference in what is offered as advice.
In some places two showings for the month is great in others it's very poor.
You are the one picking the REA. They work for you. You tell them what it is you want as far as price.
I'd be calling an attorney to find out just how many signatures it will take to close this deal. Getting four people to agree to a offer can be a PITA at best. You need to sit down with the other three and put in writing how you are going to handle the sale. What you will accept as a reasonable offer and how long you are willing to wait to get that price ect. That agreement needs to be between the four of you, not a agent.

    Bookmark   May 29, 2009 at 9:41AM
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linda117117

The difference between 6 and 7 percent commission on a 70k house is $700. You never really said why you want to change realtors? Is it because you think changing realtors will get you more showings? Reducing the price will get you more showings. He wants to reduce the price because you arent getting the activity for the price range. He "tested" the market at the higher price, its not working. Get it into the range it should be. There is probably hard wood floors in that house since it is built in the 50's, rip up all that dated carpeting, the house will show much better, take down the old lady curtains, warm up the house with a nice warm paint color, white is too bland and stark. I think your biggest issue is probably the electric heat. That is a killer in colder climates. Alot of people wont even look at a house with that type of heat, its too expensive. In my area, typically those homes sell for at least 10k less than its competition with gas or oil heat.

    Bookmark   May 29, 2009 at 10:42AM
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sylviatexas1

"You are the one picking the REA. They work for you. You tell them what it is you want as far as price."

& if you want $80,000 for a $60,000 house, an experienced Realtor will not take the listing at any "commission" because the actual commission will be zero *because the property will not sell*.

& the seller will go to Realtor #2 & drop the price & whine about how Realtor #1 didn't do her job.

    Bookmark   May 29, 2009 at 1:54PM
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Carol_from_ny

Yep, that happens sylviatexas but it's been my experience that a really good agent will tell their client that they are too high and why and then pull the comps to show them.
In this case it sounds like the agent lead them to believe that the 80 was the right number so he could get the listing.
First rule of selling is to have some idea BEFORE you go to the REA of what the house should sell for. This means going to others open houses and looking on line. You'd do less if you were selling a car or a boat.
Seems to me the other two sisters had a better handle on the market BUT as I said before getting 4 people to agree to anything on a given day can be tough. They need to sit down among themselves and decide what route they are taking and for how long.

    Bookmark   May 29, 2009 at 2:21PM
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woosisu

Did your realtor do a competitive market annalysis on your house? He should have shown you comparable properties that have both sold and what you would be competing against for that buyer. The longer the house languishes on the market, the harder it will be to sell. People will think somethings wrong with it plus you are not getting the lookers in that lower price range because they think they can't afford it. In this market... lower the price, sell the house, and be glad to be done with it!

    Bookmark   May 29, 2009 at 11:06PM
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xamsx

Linda117: There is probably hard wood floors in that house since it is built in the 50's, rip up all that dated carpeting, the house will show much better, take down the old lady curtains, warm up the house with a nice warm paint color, white is too bland and stark.

I could not agree more!

Take a look at some of the other listings in your price range (or better yet, tour a few via an open house) and see what your competition is. Your house needs some elbow grease to make someone want to view it in person and eventually buy it. The quick tips Linda117 posted will go a long way towards accomplishing that. Do the work before you drop your price. Once the work is complete, retake the photos and have your Realtor put up the new pictures in conjunction with a price drop.

    Bookmark   May 31, 2009 at 1:53PM
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