Full Service Listing Verse Limited Service

By
Real Estate Agent with Donna Homes, PLR 0480809
One of the things I have to explain to sellers when I'm on a listing appointment is why I can't take a reduced commission to sell their home. My first response is, weren't you paying attention to all the marketing I do for your house to get it sold and do you not understand how much time, energy, and money it costs to do that? Asking a Realtor to take a reduction is like asking you to work a full 8 hour day at the office, with your full duties, and then asking you to only work for 1/2 your salary because the company needs to cut back a little bit. What would you say to your boss? I would hope you would say NO along with a few choice words!

Well, a study came out a couple of months ago for the Dallas/ Ft Worth area and it's VERY interesting. One of the results is as follows:
*"Limited service listings sold for 1.7% less than typical exclusive-right-to-sell listings and took 17.1% longer to sell."

WOW! Let's put that into real numbers. Let's say there is a house that sells for $200,000 in 60 days with a full service REALTOR®, like me. The above statistics would show this same house, with a limited service brokerage, would sell for $196,600 in 70.26 days. So, the seller "tried" to save 2% on the listing commission... did he succeed?? NO!

The difference in price is $3400. 2% of $196,600 is $3932. Then you need to calculate those extra 10.26 days on the market. What are your taxes per day? Let's say tax are about $5600 a year which would be about $15.56 a day. Home Owner's Insurance can be estimated at about $5 per day ($1800 yearly coverage). Taxes and Insurance for the additional 17.1% marketing time is $210.95.

So, in all actuality, you didn't save 2% of the commission with a limited service brokerage. What you saved was $321.05. Is it really worth $321 to schedule all your own appointments; to be home for each and every showing to let them in the house; to sit on the market an extra 10 days; to call for feedback; or to negotiate your own contract instead of having the help of a professional? What is your time worth to you?

*Tierra Grande by James Ford and Ron Rutherford; January 2006
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Texas Collin County Plano
Tags:
collin county
collin county homes for sale
collin county real estate
dallas
dallas area realtor
dallas county
dallas county homes for sale
dallas county real estate
dallas homes
dallas real estate
house for sale
loan approval
plano
plano homes
plano homes for sale
real estate
richardson
richardson homes
richardson homes for sale
texas
texas homes

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
529,137
Rich Jacobson
Keller Williams West Sound Realty - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
Hi Donna! Amazing how far we've come in such short time, huh? Have en enjoyable and safe New Years!
Dec 25, 2006 04:39 PM #1
Post a Comment
Spam prevention
Show All Comments
Rainmaker
1,391,093

Donna Harris

Realtor, CDPE & ASP - Hill Country Lakeway Austin
Are you Packed for Austin? I can help!!
*
*
*
Spam prevention

Additional Information