01 Oct “If I Can’t Sell Your Home, I’ll Buy It!” ::cough cough::
Remember that episode of Different Strokes where Gary Coleman/Arnold Jackson hung himself upside down in his closet thinking it would make him taller? That era produced some of the best sitcoms. They just don’t make shows like that anymore. Unfortunately gimmicks are as strong as ever.
Let me cut to the chase. Here’s a simple question:
Imagine if I knocked on your door and told you I wanted to buy your home for 90% of its appraised value. Would you let me buy it? What if “I” got to select those same drinking buddies appraisers?
Before you answer that question lets break down the numbers on a home with an apprasied value of $200,000:
$200,000 X “usual” commission = $12,000.00
90% of appraised value = $20,000.00
$200,000 – $32,000 = $168,000.00 net to the seller.
How about if I also required that YOU agreed in writing to make any and ALL repairs to the home PRIOR to a home inspection?
I’m sure some of you are thinking the commission is of no relevance considering you were going to pay that anyway. But that isn’t so. Not in my book. If I stood to gain 32k equity of your 200k home what do you think the likelihood is that I am going to be working REAL HARD to find you a better offer from another Realtor? The commission is designed to pay for a service….. and I’m not talking about the kind of service where the home owner gets bent over. I’m talking about the kind of service where the home owner pays to sell their home for the highest and best offer. A seller who pays a commission should have THEIR best interest put FIRST.
When I first got in this business I noticed these “gimmicks.” These cute little ways to “get more listings.” That’s right, to “GET MORE LISTINGS.” Notice I didn’t write “SELL MORE LISTINGS.” Odds are you’d never agree to the program I just explained, but by the time you said “NO” it wouldn’t matter, I’d already be sitting across the kitchen table offering you a more traditional method. One that makes sense. One that isn’t as silly as what poor Arnold was trying to do.
The good old fashion bait & switch.
This practice might be great for you. Not all participating agents that promote this type of practice are doing so to take you for 30% equity of your home. I also don’t believe in the cookie diet.