For the past few years, there has been an enormous migration of consumers looking to alternative methods of selling their homes rather than using traditional real estate brokers. According to the 2006 Consumer Federation of America Report that analyzed the growth and challenges of non-traditional real estate brokers, the growth of the "discount broker" in Seattle, WA has seen nearly a 450% increase in customers since 1995.
The rise of non-traditional or discount real estate brokers such as Redfin, Zip Realty, Help-U-Sell, etc. has provided consumers with an alternative to the fee structure of traditional real estate brokers. Many consumers have become disgruntled by a perceived lack of willingness of some traditional agents to reduce commissions to facilitate transactions in this challenging market environment. Furthermore, many consumers no longer see the correlation between the higher fees of traditional brokers with the quantifiable and tangible results of successful and mutually beneficial real estate transactions.
Many consumers have sought to go the way of "For-Sale-By-Owner" (FSBO) to do it on their own because they feel they can either sell their home better than a traditional agent or save significant dollars along the way. According to the 2009 National Association of Realtors (of which I am a member) report, 69% of the consumers that chose to sell their home For Sale By Owner (FSBO) did so to avoid paying high Realtor fees.
As of the 2009 NAR report, For Sale By Owner (FSBO) transactions accounted for 11% of the total sales transactions completed in the year. 75% of those polled in the report stated that the largest difficulties they faced were due to lack of in-depth market knowledge that led to mis-pricing their property, difficulty in understanding the paperwork, contract negotiations and property presentation. The results of this move to discount or do-it-yourself strategies have left many consumers with mixed to poor results at best and most looking for more answers. Some figures have the number of consumers giving up and turning back to traditional agent representation as high as 70-80%. This after months of additional carry costs (mortgage payments, etc.), longer market times and lower overall showing activity.
The most startling difference comes from the difference between the sales prices of those represented by a traditional agent versus For Sale By Owner (FSBO). According to the 2009 NAR report, homes represented by a traditional agent sold for $215,000 versus homes sold For Sale By Owner (FSBO) at $172,000, a 25% difference. Even when you take into account that many FSBO transactions are done between family and friends, the differential is still tremendous. This number is up from a 16% differential in the 2005 NAR report.
Consumers are speaking with their actions and moving towards discount and FSBO alternatives, but the results reflect that this is oftentimes not the best option for most people trying to sell their home. We feel strongly that we must produce a quality alternative that provides our clients with the best chance to succeed at selling their home in this market while simultaneously balancing a clients desire to save resources.
At the James Real Estate Group, we are keenly aware of the importance that consumers have placed on being in control of how much they pay for real estate services, especially in light of this challenging market environment. Thus, we have created our Sellers Advantage Program. We have developed a program to provide our clients with "traditional agent service and representation but with the ability to choose a non-traditional price."
The Sellers Advantage Program is structured to provide our clients with four distinct service platforms, each containing a basket of services designed to provide the client with price discretion while at the same time enhancing the marketability of the property. This program enables you to choose a service platform that satisfies both your financial and real estate goals. You can choose from our Base Package (1.5%) all the way up to our Platinum Package (3%), or somewhere in between. One thing is for certain, the plan you choose will be right for you.
No equity or financially distressed? No problem. My team is extremely experienced and qualified in working with Short Sales and Banking institutions to work out financial solutions that work for all parties.
Interested in learning more. Just give me a call (206) 300-2693 or shoot me an email at email@example.com. Visit our website at www.jamesregroup.com to learn more about our services and how we have helped other clients just like you. Your information is always confidential.