Helpful Articles and Tips from Wayne Newsom
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EXPOSURE LEADS TO BEST OFFER
- In order to get the highest and best price for your home, it is best to expose it to the entire market. The broad exposure creates competition for the home that can not be created in a limited market.
- Sometimes sellers may be tempted to save the commission by marketing the home themselves. They put a sign in the yard and advertise. Yet the exposure that they get is limited to those people who happen to drive by or read the advertisement.
- Buyers coming to Estes Park are sometimes wanting to make a purchase decision on a three- to five-day house hunting trip. Often times they are not familiar with the area and seek the services of a real estate agent to show them homes. These buyers are not likely to be looking for "for sale by owner" homes. They simply don't have enough experience in the area and they don't have the time to thoroughly check out the house and area.
- We are fortunate in Estes Park that the real estate community cooperates well through the multilist system. This allows a buyer to work with one agent to see all homes. That agent can show all homes, even if they are listed by another agency or are for sale by owner. When two real estate companies are involved, the brokerage fees are split between the listing and selling brokerages.
- This allows the buyer to find an agent they like and trust and establish a good working relationship with them. The buyer would be prequalified and go through their wants and needs with the agent they chose, eliminating the necessity of working with several agents. Working with one agent saves the buyer time. It also gives the buyer better service. The only things we have as agents are our knowledge and time. Since we are paid commissions earned only when a home closes, we will be discriminating about whom we spend our time with. If an agent knows a buyer is working with several agents, he simply can't afford to spend a lot of time with that buyer. The buyer will not get the best service.
- MLS gives the seller the broad exposure of all local agents working the market. If the inventory is tight in certain price ranges or neighborhoods, the more likely it is that the listing will have multiple offers - in effect, bidding up the sales price of the property. If a home is under contract with a backup, typically there are fewer inspection objections. This certainly is a major benefit to the seller.
- All sellers should insist on their homes being exposed to the entire MLS from the onset. Occasionally agencies will hold the home off MLS in an effort to sell the home "in-house". While this strategy benefits the listing brokerage firm, it may not be to the best advantage of the seller: What if there are other well-qualified buyers working with other firms who would be interested in the house? Wouldn't you as seller benefit if you received competing offers?
- It is often the case that when one offer is written, anyone else who had an interest in the house now comes to the forefront with a second offer.
- During the pressure of the competition, the price is likely to be higher or the seller may be able to stand firm on other important negotiable items such as possession, closing daee or inclusions. Having a choice of offers is in the seller's best interest.