THE NO FEE, DO-IT-YOURSELF REAL ESTATE COMPANIES
Have you seen the ads for the do it yourself "No Fee" Realty companies? They promise a one time small fee starting at $295.00 or thereabouts? They claim to be able to offer you the same service as an agent can? They can supply you with all the needed paperwork, signs, advertising, websites and more? They even have a toll-free support line?
I have seen their ads on major programs and networks on TV, full page ads in newspapers, radio spots, and ads just about everywhere else you can think of. The amount they charge is so nominal it could not possibly cover their advertising expenses. Where does the money for their advertising come from? Let alone a profit?
Trust me, that "one time fee" is not all there is. You will have to pay for signs, paperwork, any advertising, space on their website, and usually a fee for every prospect they send you. You must pay for their current market analysis and yes, a fee for their "support" line. Believe me, by the time it's all said and done, the expenses will be significant, plus these expenses are all payable up front! Not to mention the time required by you in this whole process.
I just wonder if their support is available at 1:00 am when you are trying to negotiate that deal. I can't remember how many times I've had a difficult or complex deal such as multiple offers, where I had to stay and negotiate until the wee hours of the morning. My job is to get it done right! My duty is to you, and to look out for your best interests. I stay until the best possible outcome is reached, until you agree that the result is what you wanted, no matter what time it may be.
As far as signs, feature sheets, directional signs, paperwork, pictures, and more, those are not a one-time expense either. I assure you that throughout the course of the listing, you will be spending even more. I don't go a day without replacing stolen or defaced signs. Feature sheets tend to disappear at Open Houses faster than you can make new ones. Due to rapidly changing market conditions, and the requirement to update marketing strategies, money needs to be continually spent throughout the duration of the listing. When working with me, you will never be asked for one cent of these expenses.
How about if your circumstances change after the listing? For example, what if market values are dropping and you can no longer sell for the amount you thought. The kids moved out of the house and you decided to list in order to downsize, only to find things have change, one or more kids have to move back. You listed because you wanted to buy a particular house in a particular neighbourhood, you put a subject to sale offer on it, but another offer was accepted because yours did not sell in time. You were going to upgrade, but just received layoff notice from work. God forbid there was a tragedy in your family.
At one time or another, all these circumstances plus many more, have happened to my clients. When I was asked to cancel these listings, I did so, promptly. All the expenses to that point are my problem, not yours. I absorb it as the cost of doing business and move on. I wonder if these "no fee" companies would refund all of your paid expenses. Surely NOT!
What about if you are successful in selling your home with one of these companies? I will tell you in all certainty, you will have not yielded as much as you would have, had you used an agent. In fact, you will have sold it for less than the comparable down the street. Let me explain.
A buyer coming to your house will not have an agent. Why? Because that type of buyer has the same intent as you: to save the fees. That buyer is looking for the best deal. When the offer comes in, that buyer will have calculated the fees on the one that sold down the street. Knowing you don't have fees, the offer will be your price minus those fees. The buyer does not care about your interests at all. He or she just wants to win a deal, and will move on to the next one if they don't get yours.Ok....so you decide to sell it to them. After all you did save on all those fees. But wait a minute... what about all those up front expenses? And suddenly, you've just sold for less than the comparable.
What about if you have a unique property? there are no comparables, and is the type of property that everyone wants?
In your area there are hundreds of agents all working with even more hundreds of buyers, and some of them are going to be interested in your house. Why would you exclude all those potential buyers? That's exposure! That's demand! For the last several years, with no end in sight, multiple (or competing) offers have been more common than not. I have seen houses sell for tens of thousands of dollars above asking price! Ask those sellers if they regret paying fees!
The "no fee" companies refute this by saying, "market value is market value and you will never sell for less."
Wrong. I firmly believe that if all Real Estate companies and all their agents fell off the face of the Earth tomorrow, within a short time, prices would fall for about the same percentage that the fees are.
So if the fees are part of the market value, what are you losing? Nothing. Pay the fees; I will achieve only the best possible results. Keep me on my toes; you are my customer, my principal - I work for you. Remind me of my Mission Statement as often as you like. You will not regret calling me.
