We firmly believe in the proportional representation when it comes to compensation where the Sales commissions and pay should be directly linked to the amount of effort and hustle to Sale your home. And given the Super Hot Housing Market of Silicon Valley where homes are selling within hours of hitting the MLS Listings, can you justify paying full commission to your Broker!?
The answer is qualified NO, unless your Broker/Agent is negotiating a Short Sale on your behalf which requires a lot of fence building with the Short Sale Negotiators at the Banks. We have written extensively about the Success Criteria of Short Sale Negotiations in our blog. In most cases, Short Sales are sold more than once since the 1st buyers never stick around long enough to see the Short Sale approved. That means that your Listing Agent has to find at least 2nd or 3rd buyers by the time your escrow closes.
However, we market homes for 2% listing and get qualified buyers sent your way within 15 marketing days. Let me explain what we are confidant in our methods. According to California Association of Realtors, the Average Marketing Time for a property in Silicon Valley has declined by 48% compared to the same period last year. This means that listing agents have to spend a lot less time marketing a property compared to 2012. And less effort, should mean less compensation. Here’s a summary of reasons why we believe you should be able to negotiate a better commission on your Home’s sale:
1) Inventory Shortage: Thanks to the manipulation by banks, there are more buyers than sellers in our Silicon Valley market, so your home is already in demand due to lack of inventory.
2) No Demand Generation: Due to shortage of inventory, your agent does NOT need market to generate interest for the property. Less effort should equal less pay.
3) Less Marketing Time: Since homes are selling much quicker now, your Listing agent won’t have to hold 10 Open Houses to get a buyer signed. Less work, should equal less pay.
4) More qualified Buyers: Lack of inventory has forced the buyers into a survival mode where they need to be pre-approved with proof of funds ready or else they won’t have a chance. Less effort in finding qualified buyer, should equal less pay.
5) What the Heck for: You should not be required for paying for the fancy digs occupied by the well-branded Brokerage with offices in the most expensive districts. Their building address is NOT going to sell your home, so you should not be required to cover their lease payment for a full year.
In summary, if excessive executive pay bothers you, then paying excessive amount of commissions should also bother you. So Contact US if you are interested in Listing Your Home for sale and negotiating a fair commission to market your home for sale.