Most people’s biggest asset they will ever own in their lifetime is their primary residence. When it comes time to sell your Phoenix property would you rather trust that sale to your ‘homie’ or to an Executive?
The market is good right now. Prices are increasing, most of the people who lost money during the real estate bubble have seen their values come back. There are too few houses on the market, so when a house is put on the market with a great marketing plan, it is going to sell.
I was a history major in high school. I know history repeats itself often, so it is easy to just look back at 2004-2006 when things were booming and know what is coming. When the market is good people look at real estate as ‘easy money’ and they come into the business with a ‘discount broker’ model. They think this is so easy to sell a house that we can charge a smaller fee, put it in MLS which syndicates to roughly 6.3 gazillion websites, and presto it sells. Where is my Easy Button?
I have had two friends, not in real estate, recently ask if a certain low-flat fee brokerage is hurting the business of the Phoenix Real Estate Guy crew. This certain brokerage has been spending a lot of money advertising so I decided to pull some numbers.
These numbers are as of July 26, 2018, and looking at the year to date on just the listing side.
Let’s say you are out for beers and wings at The Reef in Uptown Chandler one night with your homie from high school who works at a discount brokerage. You mention you are downsizing and going to sell your house. So your homie says I got this, and I can save you money. So what can you expect the results to be?
This chart shows the numbers year to date with this discount brokerage vs. The Phoenix Real Estate Guy crew at Realty Executives.
To date, in 2018 this brokerage had closed 16 transactions with 9 that were either taken off the market or canceled. While the three of us and our teams had sold more houses with only two that did not sell. So if you went with the flat fee discount brokerage you had about a 65% chance of selling your house. While using one of us executives you had a 95% chance of closing. 65%, 95%. Trust an executive.
Remember what we said above. The reason they are getting in with this discount brokerage model is that real estate is easy, especially in this hot market.
There are things we can do to have your house have a better chance of selling. Our job is to get more people through the house to give you the best chance of selling the house at the best price. So when you are looking to save a few thousand dollars on your home ask yourself, is it really worth wasting the time and effort with your homie, or should you just go straight to an executive and have a better certainty of selling?