In today's sluggish real estate market, punctuated with declining property values and slower sales, you may want to consider what it's going to cost you to sell your property.  With a typical full-service broker, you can expect to pay 5 to 10 % commissions to market your property. 

For example, if your home has a selling price of $250,000 at a 6% commission rate, it will cost you $15,000 before you pay for closing costs and home repairs. I don't know about you, but that is a lot of money, especially if you paid $230,000 for the property just two years ago! 

You could go to closing and not have enough equity in the property to cover these costs. You might have to take your checkbook to close the deal, especially if you have to move.  Some people are doing that because the inflated real estate market deflated, and the value of their property has plummeted. 

The idea of a discount brokerage came to me many years ago after I sold a fixer-upper.  The broker/agent's check was larger than the profit I made on the property!  The selling agent was with another company so he was working for half the commission rate.  My listing broker didn't sell the property and still got paid half! 

That didn't seem fair, so I made a decision: when I became a broker I was going to get paid for what I did.  If I didn't sell the property, I wouldn't get half the commission.  Does that sound fair to everyone?

I have to concede that with a discount brokerage, you don't get all the services that a full-service brokerage company offers. We do not advertise property in the local newspaper, because it is expensive and isn't as effective as it was 20 years ago.  We don't advertise in the glossy real estate magazines that you find in your local grocery stores, because by the time your property shows up in them, it has been on the market for 60 to 90 days. 

So, how do we market your property, and why do we do it that way?

Today's buyers are looking on the Internet at places like Realtor.com.  Did you know that anyone could go to our local MLS online and access all the listings without being a Realtor?  Future buyers are driving through neighborhoods looking for "For Sale" signs and then looking them up on the web. 

Many buyers are moving away from "For Sale by Owner" because after the closing, too many non-disclosed items were cropping up, such as: non-permitted additions and remodels, non-permitted and non-inspected electrical or plumbing upgrades, or termite damage that was concealed by the homeowner so a termite inspector wouldn't find the damage. 

I have often said that money feels better in my pocket than in someone else's. You have to decide what is best for you. Will you have empty your checkbook at closing, or will you get to keep some cash in your pocket?

 

Property values are not growing like they were a couple years ago. In some cases, values have gone down.  I believe that the market is going to settle down to was before the bubble, and will have a growth rate of 2 to 4%. 

If you do your homework, you can start seeing your equity grow in a couple of years. When you sell, you can make a decent amount of profit from your investment.

 

I have decided to run for Congress. Please find out more at www.martin-backforcongress.org