Why Pay More?... shouts the headline of a local company that offers limited service listings.
Good question. I'm a consumer, I shop hard for things I buy and my wife clips coupons and generally only shops sales, so getting a deal appeals to me.
What's my answer? Results!
I took a look at the recent history of an agent, whose recently expired listing I just called on, to see what kind of results he was getting. Here is the breakdown of residential properties he's listed in the past 6 months in my county.
16 Active listings
1 Pending inspection
1 Pending Financing/Closing
1 Sale Fail/Release 304 average days on the market
6 Expired 335 days average on the market
12 Cancelled 109 days average on the market
2 Sold 147 days on the market, 94% of last list price
2 Possible Successes
What does this say about the odds that the 16 active listings will close? Not very good I'm afraid. But what's the harm... so they try it for a while?
Let's make some assumptions; the average list price for his active listings is over $500,000. If the market declined 10% this year, just a rough estimate for my area, those homes are worth $25,000 less now than they were 6 months ago. If the home owners still want to sell, and many of the cancelled and expireds I checked were back on the market, they were worse off than before.
Am I picking on this one poor agent, one limited service company? Perhaps, I won't name him, and I don't blame him. He collects a fee upfront regardless of the results. I just feel that his question deserved an answer. I'll compare my results with these any day of the week.
What about in your market, do the limited service companies do any better? Are their clients well served?
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