Profile picture for user4846460

Help with picking the right listing agent!

I am interviewing multiple listing agents.

A listing agent offered me free Inspection report, a title report, and a lender quality certified appraisal (not just a CMA) from [website deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines].. I found this agent more valuable, though he is charging full 6% commission. I was hoping to pay 4.5% commission.

Is a free due diligence packet on my home by [company name deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines]. worth the extra 1.5% commission?
 
His argument is that a due diligence packet would attract additional buyers and remove post-inspection-contigency renogotiation, which would itself pay for the additional commission plus more. Please advice.
  • February 23 2014 - Seattle
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Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (31)

So how's your listing going?
  • October 28 2014
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Profile picture for daveskow
Hi there …checking in to see how your listing  is going ?   has the property been placed on the market ?  if so - did it sell 

thanks and all the best ?
  • April 12 2014
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Profile picture for user4846460

Thanks to all of you. As a result of this thread, I got several listing agents writing personal email to me. I was able to talk to two more from Zillow. The issue is that everybody is offering exactly the same pitch. Nobody even tried iota to differentiate themselves from the crowd. It is exactly the same. How I as a end-user make a pick? Should picking a listing agent be that hard?

If you were to make an option, which option would you choose?

1. Everything the same.

2. Everything the same + something new.

Even if I had agreed with each of you that "something new" is not valuable, but there was no reason to think that it would hurt to try. Even if that something new has no value, it would still leave me to the current baseline of offerings. I am not from real-estate industry. I am from technology industry, so I naturally value innovation. That agent was showing a lot of energy. Indeed, I had shortlisted him, that is why I posed the question here. The discussion here really helped me made my choice, since nobody was able to made a better suggestion.

The purpose of the thread is accomplished. So there is no point in putting more stuff on it, which question my intent, judgment, or choice. Wish you best of luck to all!

  • February 25 2014
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Profile picture for sunnyview
"I was sitting on the edge of my seat for this one."

Me too! In 3D glasses it was almost more than I could stand! I'm just glad we all lived to tell the tale.



  • February 25 2014
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I was sitting on the edge of my seat for this one.  Would user4846460 change from the system he/she was highly promoting or not.  Shocking outcome.  /sarc
  • February 25 2014
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Profile picture for Gabilan Properties
Great! Now we can put this ad fest to bed.

What this agent is offering, has no value in the "real" real estate world.
  • February 24 2014
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Profile picture for user4846460
Thanks everybody. I have picked the listing agent. I am going with the agent who is arranging a free inspection, appraisal, and title report from [company name deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines]. I see that any revenue maximizing activity involves servicing the potential buyers as best as possible, and I want to maximize the revenue from my home. I have not seen many listing agents treat home buyers as potential customers. His past record in quick and hassle-free sale above list price is quite impressive.
  • February 24 2014
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Truthfully, he hasn't charged you anything yet if the property isn't on the market and hasn't sold. Share your budget BEFORE you interview agents. You'll draw a pool of like-minded agents from which to choose, then get into the details of due diligence and what not. As a specialist, my fees reflect the onus of my professional capability, accountability, education as I travel among other real estate specialists to better serve specific clientele. NOT to detract from discount agents. You (he) shouldn't be ARGUING w/ anyone during this time of transition.  Good luck. Lyn.
  • February 24 2014
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An appraisel is just an opinion , It gives an estimate of value.  Usually this value is not very accurate. An Appraisel's only purpose is supposedly protect the lender by using Loan to Value ratio's.

Having an early inspection does't help either,  every inspector will call something out different then other inspectors.

My neighbor's house just sold ,  and they had 4 deals fall through that all had inspections.   The Seller was fixing something new each time.

So their you go......not much value, for these items.
  • February 24 2014
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user 4846460..................I am licensed in Washington and Oregon and am a  member of the NWMLS.......I am originally from seattle and getting my network back in Seattle.

I work for Windermere Real Estate , and would like to offer my services, and interview for the listing.


Dave Triol
[Phone removed by Zillow moderator. Please see our Good Neighbor Policy for information]

ps.  It really comes down to price and what quality house in the Location.
  • February 24 2014
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Profile picture for wetdawgs
May you make the right choice for yourself,  and at this point it seems as if you've identified a choice that works for you.  The Zillow moderator is being diligent removing your links and references to your choice, and  your posts are sound like a promotion.  

May your sale go well.

  • February 24 2014
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Profile picture for sunnyview
Honestly, it seems that you are promoting a specific website as opposed to an idea. Discussion is welcomed on Zillow, but I would encourage you to read the policy so you don't get flagged.
  • February 24 2014
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Profile picture for user4846460
Dave, very good questions. I asked the same questions from the agent. No, I am in under no obligation if the house does not sell. I do not have to pay a penny in that case.

My understanding about his strategy is that, it is not targeted to save some money for the buyer. If that were the case, how much it would be saving, at the most a few hundred dollars, which is worthless.

His strategy is to empower the buyers and increase the buyer's decision making speed. As per him, many buyers missed out on hot properties because they are overly risk-averse and inherently slow in making decisions. Their agents are not empowered to help them make decision faster. Sellers lose on such buyers. Even one additional buyer interested in my home would be worth 2% additional revenue on an average. So that looks like win-win-win for me. More commission to the listing agent, better allocation of homes to buyers, and much higher price for me.
 [Promotion deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines.]
  • February 24 2014
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Profile picture for sunnyview
A buyer would be foolish to rely on any seller provided disclosure or due diligence packet whether it was provided by a third party company or not.

Buyers should do their own inspections and choose qualified inspectors to inspect key areas of the house. Sellers can do a pre inspection or provide a report, but buyers should be encouraged to put seller provided inspections or reports where they belong... in recycling.
  • February 24 2014
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User wrote:  "This appraisal can be backed with the Earnest Money protection of the company. I do not see anybody protecting any single penny of the buyer. If my buyer's earnest money can be protected, would not it persuade the buyer to make an offer, perhaps without even a contingency."

For this to be relevant to a buyer a seller would need to request waiver of the financing contingency, and that seldom happens.  If a buyer is that worried about it they could include Form 22AA (appraisal contingency) and that would survive the waiver of the financing contingency.

But ignoring that, I don't see how you would make this a selling point for a buyer because you'd basically be saying that you're one of the few sellers who are planning on asking the buyer to waive the financing contingency.  To me that would be telegraphing that you might be difficult to work with.

Also, connecting up with a prior point, about listing for a price that attracts offers over list, seemingly that would make this appraisal guarantee go away unless you're going to list for less than the appraisal amount.  I'm assuming of course that the EM guarantee doesn't include a sale price above the appraisal price.
  • February 24 2014
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Profile picture for daveskow
Regarding inspection / appraisal report - in my opinion most ( if not ) all possible buyers will gladly accept any data provided but they will also be foolish to not complete and order their own reports ( even if reports are "independently prepared " Appraisal would have to be redone due to lender requirements so why bother with two plus cma etc....is listing agent willing to offer buyer a Credit to pay for lender required appraisal ? This would be more attractive to a buyer than a pre done appraisal that essentially useless Title report being provided - there are 2 Reports - one for seller and one for buyer - Is this agent offering to provide a credit to buyer to cover their portion of the title cost? If so - this would be much more Attractive to a buyer than a title report prepared in advance to review Question - if you choose to cancel listing or Change listing agents down the road -do you need to pay for Any of these items ?
  • February 24 2014
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As to pricing, any house well sell quickly at a price over list if it's priced below market.  That is one of at least three market strategies.  The problem is there is a psychological limit to how high over list buyers will go, so you can price too low.  Also, don't blame the agent if you see a house priced too high.  The seller controls price.  Agents can refuse to list at a price but many agents allow clients some latitude in pricing.  You're right though that some agents will suggest a higher price to get a listing, and the agent actually selected will need to deal with that as part of their client's opinion of value.  The seller will also be getting opinions of value from other more questionable sources.  To be successful the agent needs to deal with those issues, but there are ways to deal.  The real problem here would be the unrealistic and inflexible seller, but that does not sound like you.
  • February 24 2014
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Profile picture for user4846460
Doug, appreciate your response. As I said in an already long thread, I as a seller will have no influence on the inspection report done by [company name deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines]. It is a third neutral party. So wetdawgs response is based on the wrong assumptions. Regarding the appraisal, this agent told me that it would be a lender quality appraisal and not just CMA as done by other agents. This appraisal can be backed with the Earnest Money protection of the company. I do not see anybody protecting any single penny of the buyer. If my buyer's earnest money can be protected, would not it persuade the buyer to make an offer, perhaps without even a contingency.

Wetdawgs response is also not based on the current market scenario, where many buyers are waiving inspection contingency. Those who are not waiving are finding themselves out of buying the most desirable homes. I as a seller do not want to lose out on such cautious buyers. I want to provide them every information so that they can participate in winning my house on the same levels as some of the risk taking buyers are.
  • February 24 2014
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Doing a seller inspection is somewhat controversial.  

http://www.trulia.com/blog/kary_l_krismer/2014/01/seller_inspections_good_or_bad

But in any case, I have a real problem if the agent is not giving you a choice of at least three inspectors, OR making one of the three inspectors free.  What the inspector says is wrong (as opposed to what is actually wrong) are things you will need to deal with in some way.  That is no bargain, IMHO.  And that the inspector is "independent," well that is just complete nonsense.  

As to the rest of the free stuff, not worth a dime.  Any agent can get you a title report, and they should get a title report before actually listing the property. Also, there is nothing magical about an appraisal, other than perhaps giving you an alternative basis for disclosing the square footage of the house.  In fact, I would say appraisers are less in tune than agents to factors that will make a house sell or not sell, and I've yet to see an appraisal that offers an adequate discount for poor condition.

All that said, depending on the property, 6% may very well be a fair commission.  There are other things the agent should be doing for that commission.  But it sounds like you fell for a sales pitch.
  • February 24 2014
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I cannot agree more with these words from wetdawgs and its worth posting them at the forefront of this thread, I still see this user as an advertiser so I wont be indulging him with my time or efforts...

WetDawgs:
"While buyers are happy to look at a seller's inspection report, it is a rare buyer who will skip their own independent inspection.

While a buyer doesn't mind looking at an appraisal,  their lender is not going to skip the appraisal.

Title search - once again, the buyer doesn't get to skip this even if you provide it.

Sounds like a lot of money is being spent on things the buyer is going to have to pay for any way.
'
You asked what the Zillow moderator objected to.... I suspect it is using the company's name and website in almost every paragraph.   The same happens if you say Re/Max, or Century 21, or Keller Williams or Coldwell banker again and again with websites addresses.     Don't hesitate to discuss the subject, but leave the name and website out of your posts. "
  • February 24 2014
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Dan, totally agree with you. The agent I am asking about here seems like great agent. He is aware of modern tools, and have successfully closed many high end sales. His strategy in last many sales is to enable the buyers to compete vigorously on a home. I saw some of his past listings and they all went significantly above the list price within a matter of week, and closed within 4 to 6 weeks.

The cost of his due diligence packet is not the primary thing, as he is eating up the cost. To me, his commission is the same as any top notch full service agent's commission. Though this is the only agent I found, who is aware of all the latest tools available in the real estate. He is the only one which told me how [company name deleted by Zillow  moderator. Please see our Good Neighbor Policy for posting guidelines]can persuade the buyers to make their best offers.

This to me is an indication of both his experience and his continued learning of the modern real-estate. It is like a doctor who is aware of the latest treatment options for his patients. 
  • February 24 2014
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Profile picture for Dan Tabit
User,
In my opinion the deciding factor on who you select shouldn't be the "free" extras they are offering or the commission structure.  You should select an agent based on who will get you the highest net price after all is said and done.  Each agent/broker has their own approach (or should have) lower commissions, extra goodies, franchise name etc.  All of which may have value, but any of them will pale by comparison to a great agent with skill, experience and real knowledge of our business. 
Focusing on the commission may get you an agent working on two to three times as many transactions to make their incoming, providing you much less time and attention.  My advice has been to focus on finding the best possible agent. A great agent is worth more than whatever commission you pay, but a bad one can cost you way more than just a commission. 
  • February 23 2014
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Profile picture for user4846460
wetdawgs, that is the point. It is not the seller's inspection report. It is an inspection report done by an independent inspector *not* chosen by me. I as a seller will have no influence in it.

Today, at least in king county, buyers are skipping over inspection contingency blindly. Those who are not losing on buying homes, even though they might have been willing to pay higher. I as a seller do not want to lose on these potentially risk-averse, but possibly willing to pay higher amount, buyers.

Regarding appraisal, indeed, a lender will order its own appraisal. But there will be some report which will get used to decide the price of the home, before lender even come into picture. Is a CMA report done by an agent superior or a report done by a certified appraisal? Even in this seller's market, many homes are sitting over a month. Clearly these homes are priced higher by the listing agents in order to lock the listing. I do not want to be in this situation, where my home sits in the markets for weeks, and get tired. That way eventually I will have to cut down the price. I want to start with the right price in the beginning.

Thanks for telling me that Zillow is objecting to the name. It is strange, since without using the name, it is hard for me to describe my situation. Without using the name, it would look like as if the seller is providing the due diligence packet, whereas the truth is that an independent third party would be doing it, without any influence from the seller. This aspect is the key to my question.

  • February 23 2014
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Profile picture for wetdawgs
While buyers are happy to look at a seller's inspection report, it is a rare buyer who will skip their own independent inspection.

While a buyer doesn't mind looking at an appraisal,  their lender is not going to skip the appraisal.

Title search - once again, the buyer doesn't get to skip this even if you provide it.

Sounds like a lot of money is being spent on things the buyer is going to have to pay for any way.
'
You asked what the Zillow moderator objected to.... I suspect it is using the company's name and website in almost every paragraph.   The same happens if you say Re/Max, or Century 21, or Keller Williams or Coldwell banker again and again with websites addresses.     Don't hesitate to discuss the subject, but leave the name and website out of your posts.

  • February 23 2014
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Profile picture for user4846460
Thanks Dave.

I can sell my home quickly in any market, any time, not just in King County. It always depend upon the price.

I have only one home, and it is a significant part of my net-worth. I want to get the maximum price for my home. There are very few sellers in King County, who are maximizing their revenue, because very few realtors know how to do so.

Obviously, I believe realtors service is not a commodity. A superior realtor is worth his/her commission in gold.
  • February 23 2014
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Profile picture for user4846460
Thanks Maria and wetdawgs.

wetdags, indeed 1.5% is not free, and as such nothing is free in the market, not even google searches. There are listing agents who are charging full 6% and not even offering any additional service on top of the discounted listing agents. This listing agent is offering something which is going to cost him over $1000.

Maria, indeed 5 different inspection reports may be different. Though, do buyers rely on 5 different inspection reports on just one? If the buyers rely on just one, then that could be the one from [deleted by Zillow moderator]  as a seller will have no influence on the [deleted by Zillow moderator] inspection report.

The appraisal report comes with an earnest money guarantee for the buyers. It is the same quality report as lenders use. I have never seen anybody offering any kind of guarantee, even a penny, regarding this.
  • February 23 2014
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Profile picture for daveskow
If property is in king county - no need to pay extra expense to sell house in this marketplace
  • February 23 2014
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Profile picture for wetdawgs
Do you consider 1.5% of your home value "free"? 

If you think these things offer value, perhaps you should price them independently.
  • February 23 2014
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I gotta say I am on the fence regarding this. Not sure if it's a ploy to justify a higher commission or if those items are of real value to a buyer. Five inspectors will find different things wrong with a house as will five appraisers come up with a different value. A pre-inspect is useful but you can order one yourself and have it available for review. An appraisal not so much because a bank appraiser has to follow guidelines so there is no guarantee the appraisal will be meaningful for someone going for a mortgage. The most valuable is the title search but also can be ordered by you. All these items of value seem to be putting more value in the agents pocket....
  • February 23 2014
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Profile picture for user4846460
Thanks Lisa. Yes, he and the others I have interviewed are all experienced. The differentiating aspect, I want to discuss on this thread is whether offering the buyers a free due diligence packet from [deleted by Zillow moderator] worth it?

The market is a seller's market, so it is easy to get discounted listing agent. Is paying full commission to make it easy for the buyers to evaluate my home worth it?  
  • February 23 2014
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