A friend sent me this article from STLtoday.com (titled: Home sellers skip agent, hope to save). The article is informative, but the comments are much more interesting. Here’s one of my favorites:
This is a no brain-er. You strike a deal,contact a real estate atty,and for a couple hundred bucks you get all the legal paper work done. Then you proceed to closing,and nothing happens there unless it’s all up to speed. Have sold many a home myself. Just hang in there,you DON’T need a realtor. As for pricing. Simple. Check what other like kinds in your area are going for
True: Not everyone needs a Realtor and lots of folks are successful selling on their own. By all means if you have the time and the marketing ability, give it shot. BUT, pricing is not simple. To fully understand that statement, it may be helpful to try an exercise.
I will use Clifton Heights an example.
Here’s the task: A new seller would like to list his home. By studying the chart below, what do you think the appropriate price for the home would be? The home has 3 bedrooms, 2.5 baths and a one car garage with a fenced yard of average size. The home is approximately 1700 square feet. The kitchen is updated and has granite, but not a ton of storage or counter space. The bathrooms are nice, new and clean, but not really very large. The systems and windows are new (within 5 years).
The chart below is current. I mapped the Clifton Heights neighborhood (the triangle between I-44, Hampton and Arsenal), looking for homes with at least 3 bedrooms and 1.5 baths between 175-325K. (Here is a link to the same data with more details and pictures.)
Location matters. It is important to understand that at the center of this neighborhood, Clifton Heights, is a beautiful lake in a park setting. Homes with lake/park views tend to go for higher values. For our purposes, the subject property does not have a lake view, nor is it on the outskirts of the neighborhood. From the chart above, please note that both Simpson addresses (6241 and 6172) had lake/park views.
Two more things to add: The zestimate (zillow.com) for the property is $205,000 and the last market sale was about 5 years ago for $211,000. These are just interesting side facts. Neither is truly helpful. No one from zillow has ever been inside this home so that number cannot be relied on. And it doesn’t matter if the owner paid a $1 yesterday or $400,000 two years ago.
What is the property worth now?
Your comments would be very much appreciated!
When looking to purchase a home, I intentionally avoided homes that were For Sale By Owner. I didn’t want to deal with the hassle of someone that was already trying to game the system by not using an agent, nor did I want my agent to have to do more work for which they would not be compensated because the seller either didn’t respect or understand the work realtors do.
Honestly, these homes just seemed like potential powder kegs to me. It was awkward enough looking at a house when the seller was in it, I can’t imagine dealing directly with the seller to negotiate the deal.
Also, I’m pretty sure your house is not listed in MLS if it is for sale by owner, which is how I think most purchasers and/or agents look for homes.
Since I’m not a regular home purchaser, I found the experience of a Realtor invaluable both times that I’ve purchased property. One was for rental and the other for personal use. Both were quite different structurally and without my Realtor, I don’t think I would have made a wise investment. In both cases, I felt satisfied with what I paid, felt that my Realtor truly guided me through complicated processes of the negotiations - essentially alleviating the stress and headaches during a very chaotic schedule for me - and both investments are on target for profiting despite the economy. I would HIGHLY recommend the use of an experienced Realtor with expertise in the neighborhoods in which you are shopping.
85% of STLtoday commentors are brain-dead. Seriously, one step up from a spam bot.
Dawn, I think this exercise is great to illustrate the points you’re trying to make. You’re spot-on: not all consumers need or even SHOULD use the services of a REALTOR. However, as a whole, I do think that real estate agents get a bum rap — the syndrome of a few rotten apples spoiling the batch. In my personal business as a real estate agent, I take the role of a consultant. We’re not “used car salesmen”. We’re followers and interpreters of the market. We are truly “beating the street” on a daily basis, which is the only way to be able to stay up with the sales history, the trends, the things buyers are saying about properties… heck, even being able to say that we were inside and personally viewed many of the comps that are listed on your example above proves to be almost invaluable when trying to decipher how that data positions your own house’s value when thinking of selling.
To answer your question, what is this property worth now? I have no clue! It would require, first of all, a visit to this home. And likely a visit to the competing properties that are in the area. And then a true study of the details of the comps… likely even some phone calls to those agents who listed thos ehomes to get more details than we can siphon from the MLS data. And then of course, a home’s value also depends on how well it fits the needs of the potential buyer — I can’t tell you how many times one of my listings would get a “condition = poor” and “pricing opinion = WAY over priced” feedback from 3 agents, and then the next agent who showed it, their buyer loved it and paid full asking price. Value is in the eye of the beholder. The realtor is there to help them understand trends and avoid pitfalls in resalability issues, etc.
Great topic! I’m anxious to hear more of the public’s feedback… bottom line: real estate agents should be viewed as a profession as CONSULTANTS not SALESPERSONS.
THAT is how you make a point!
The problem of perception is one that is difficult to overcome for Realtors. Most folks simply don’t understand what is is that you all do and, moreover, the difference between a good agent and a bad one.
Try being a lawyer!
Great post, Dawn. I too am a Realtor and agree with Christopher - going to physically see the competition is important when pricing. It’s more of an art than a science.
The worst is when a unrepresented buyer wants to offer on one of my listings and expects a discount because I don’t have a cobroke.
The truth is my work triples when I have to work with a amatur
I’d say the house is in the 225-249k range.