Favorite Agent Listing Approach

[jguide]

Has anyone tried the listing aproach advocated by this guy (Matt Jones) in a buyers market? Do properties really sell faster and bring a better price with a higher 8% commision rate.

He claims that the higher rate gets more showings. He convinces the seller to up their price by 10% and raise the commission by 2% and the properties sell much faster by getting higher traffic as apposed to selling with a lower price.

I'm a new agent just looking fo a good approach to listing. His approach seems to make sense; I'm just not sure if it would work in my market where many of the buyers are presently bargin hunters looking to take advantage of our current market conditions.

[webmaster]

Seems a bit like bribing the buyers agent to be in the interest of the listing agent and not of the buyer - To me this is shady at best, attempting to offer higher commission to get the buyer agent on your team in order to increase your own commission.

I am sure there are certain buyers agents that would do this, but myself if I were representing a buyer, I would ensure that I had "their" best interests in mind, not the seller - after all is that not the function of a buyers agent in the first place? Besides in making sure I have the financial benefit of my buyer in mind, I have a better chance of building long term relationships and lifetime clients as opposed to talking a client into buying something I know to be overpriced just to make a couple of points - what happens when your buyer finds out? (If they do) - that customer will never do business with you again, and isn't real estate truly about repeat business and building a portfolio of happy customers?

I know you are new, so might not have all the insight (And I am not an agent so what do I know)

[webmaster]

Incidentally, what I "am" is a seller, and I have always been tempted by "I will sell your home for fair market value within x days or I will buy it" - in a sellers market where listings can sell themselves (And do it quickly) this seems like it is pretty safe (Especially if you have good contractual butt coverage)

[jasoncrouch]

I agree with Morgan here. We have a fiduciary responsibility to our buyer clients, so if it is not in their best financial interest to purchase a specific property, it is something that should be disclosed (e.g. "this home is overpriced for the location, etc.).

However, if all other factors are equal (property not overpriced, seems well-maintained), then this technique is fine. I have used it a few times with sellers, but we don't raise the price. Instead, we simply offer more money to the agent or to the buyer to help ensure that their home makes the cut for showings. I usually explain that if a buyer's agent has 20 potential properties to choose from, and they are going to show 10, they will generally include any homes with commission bonuses on their list.

It doesn't actually sell the home, but it does increase the chances that every qualified buyer looking in that area will see the property.

[webmaster]

I am certainly all for quick sale tactics with all other things being equal - if a seller wants to offer .5% of their 3 to the buyers agent in order to entice buyers agents to ensure the home makes the list, that is totally cool - this provides incentive to the buyer agent without them having to compromise their integrity - but intentionally overpricing the home and then offering more to the agents is not (I don't think) going to get the home sold faster, and likely there will be more room at the negotiating table for reduction (The seller will likely take a lower offer than listing price knowing full well their home is overpriced) and then the seller ends up paying 2% more on the transaction and selling a lot closer to fair market value (Giving up more in negotiation) than they realized and the buyer still pays to much

IMO - any deal that does not benefit anyone but the agents, is not a good deal (This is assuming that the home doesn't sell any faster which I honestly don't think it will)

[jasoncrouch]

I have given up some of my commission as a listing agent in order to make a deal more enticing in a difficult market. I have also offered 4% to the BA and split this extra 1% with the seller. Any time we do this, we are not raising the price or duping the buyer. I am much more concerned about having integrity than in making a quick buck. I am absolutely convinced that doing the right thing in our business (and in any business, for that matter) will always lead to long-term success.

[webmaster]

A-men brotha

I am much more concerned about having integrity than in making a quick buck. I am absolutely convinced that doing the right thing in our business (and in any business, for that matter) will always lead to long-term success.

[Chad mcbain]

Well to answer the original post I have read Matt Jones Book and did find it intriuging but do to some negative things I have read on forums such as these about his company I decided to stay away from his products. That said another agent in my office whom I believe has alot of integrity has tried Matt's approach on a couple of what he believed were difficult listings to sell. He offered 4% to the BA wich would normally be 2.5% and both properties sold much faster then expected. I do not believe that the agents in question pressured the buyer but I most certainly think they put these homes on the list to see were normaly they might not have made the cut. So I think it did increase showings and therefore the possibility of getting the right buyer.

[Chad mcbain]

Hey Morgan, I think a sale of your home gaurantee might be easy to do in a sellers market but remember it is at your price and we advertise this in a buyers market as well so you do actually take a risk depending on the property. What it really does is allow us to double end our own listings more often and also can be a good listing tool.

[Micheal Pannell Realtor]

Tell you what i do on most listings, I tell the seller to add a bonus to the Buyers agent. I tell them it will get alot of Showing. Now i dont do alot of listings but if i was looking and i saw a nice bonus i would make sure that was added to my stack