Determining Listing Pricing
Listing price, duration, and commission
1. Listing Price
Setting the right listing price is more important than most sellers think.
Just leave it to the seller and, almost without exception, they will price your listing much higher than the price you can sell your home. It's because I don't know the price of the house well, and I think a lot about it if I start high and then lower it later. However, this very idea can be said to be one of the biggest ambushes in real estate sales.
Market analysis, bargaining strategies , and reasons why the house is not sold are the descriptions of the process and principle of how we set and recommend listing prices. The final decision is always up to the seller.
Agent Bad Promise 2 You can also refer to listing pricing.
2. Setting the listing period (Listing Period)
Listing period is usually 6 months for home sales. The listing agent promises to do its best to sell the house during this period, and the seller promises to sell the house only through the listing agent during this period. If anyone breaks that promise during the listing period, it can lead to legal issues beyond moral issues.
If the listing period is too short (around 3 months or so), the listing agent is anxious. This is because you may not be able to sell your house for a short period of time, and if you meet an unscrupulous seller, you may wait for the listing to finish and then make a back deal with the buyer. If the listing period is too long (more than 9 months), then the seller is anxious. Like it or not, it is because you have to look at only one agent for that long period.
We don't care much about the listing period. Whether it's 3 months or 1 year, you can get it for whatever you give. It rarely took more than 4 weeks to get a listing and find a buyer anyway. Anyway, if you don't have any special requirements, start with 6 months. If the plan changes due to unavoidable circumstances, we will finish it comfortably at any time.
3. Setting the real estate fee (Commission)
The average commission in Southern California is 5%. Depending on the region, some still insist on 6%, while others are slightly down 5%. The commission is a burden on the seller's point of view. However, most sellers eventually sell their homes for traditional commissions. You can see why it is inevitable in Method 2 of saving commissions.
We are Full Service, Full Commission Broker. The basic commission is 5%. In most cases, subtracting the 2.5% we give to the buyer agent, what we have left is 2.5%. When I first started real estate, I used to reduce the commission, but now I don't cut it for some reason. For some exceptions, please contact us and we will explain it in a comprehensive consultation.
I can tell you the policy of not being able to cut down on commissions well from various perspectives, but the most primitive and honest reason is that the heart does not allow it. It feels like I've been on a long trip at the end of each listing. Even if you think a little bit at first, there are many sellers who understand after watching the process.
The benefits included in our commission are as follows. We know that each one carries a lot of weight and meaning, but we know that it probably doesn't mean much to you.
Selfless advice based on real estate expertise/long-term perspective (can be worth tens of thousands or hundreds of thousands of dollars…)
Average 2-6 months of hard work and careful consideration
Free (quasi) staging service (worth about $300-$5000)
Maximum marketing (2-5% difference of house price)
Prevention of possible disputes and litigation (Priceless)
Best service and peace of mind (Priceless)
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