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For Sellers

  • Trying to sell a house without a broker is not a good idea
  • Best way to sell is by hiring a good broker as an owner's "exclusive" agent
  • Worst way is to hire a bad broker as an "exclusive" agent
  • Good brokers have the same attributes as any other professional

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There are three ways to try to sell a house.

First, an owner can try to sell his or her house without a broker.  This rarely works, because most buyers shop on the internet at brokerage websites and through brokers who won’t show for sale by owner homes because they can’t make a commission, so without brokers, sellers usually can’t get enough exposure.  Typically for sale by owners give up after a year or two and hire a broker, and during that period of time they have made tax, mortgage, and maintenance payments that would have gone a long way towards paying a commission.

Second, an owner can list their house with brokers as an “open listing”.  This means that a commission will be paid to any broker who finds a buyer,  but no one broker will be given the listing exclusively.   Without an exclusive agent, open listing seller's have no one to push their house by advertising and holding open houses.  A seller who has an open listing must notify every area broker regarding the availability of their house, including any price or photo changes, and field the calls of all brokers regarding their home.  During negotiations, an open listing seller can be in a precarious position; they may not know anything about the broker bringing an offer, and most importantly, whether or not that broker is violating their duty to the seller to get the highest and best price and just trying to make a deal happen at any price so they can make a commission for themselves and move on.

The third way to sell a house is to give a broker an “exclusive” listing.  This is the best way to sell a house if one selects a good exclusive broker, and the worst way to sell a house if a seller chooses a bad broker.

It may be unpleasant, but the first thing a good broker will do is provide the seller with sales data establishing the homes likely selling price.  In addition, a good broker will describe general market conditions, how the house is positioned among competing inventory and a strategy for selling the house within the time period selected by the owner.

If the owner signs an exclusive with a good broker, he or she will immediately alert all other brokers to the availability of the house, hold open houses for brokers and the public, and advertise the house.  A good broker will  thoroughly research a property so he or she is able to answer all questions with competence, attend all showings, and, critically, negotiate the terms of the transaction with diligence on the seller’s behalf always, always, always keeping his or her fiduciary duty to get the seller the highest and best price foremost in his or her mind.

A bad exclusive agent will do just they opposite.  Bad agents tend not to provide any sales data to owners, because they want the listing at any price, so they can use it to generate calls from signs and internet advertising from buyers they can redirect to other well-priced homes.  They often do little or no research and are ill-equipped to represent a property.  Bad brokers often will not immediately share their listings with other agencies, or send incomplete photo or data sets, because they will make a higher commission if they sell it themselves or within their own agency, even if it sells at a lower price.  For the same reason, bad brokers often don't return calls or emails from other agents, and for that reason their listings are shown less frequently and sell at lower prices.  Worst of all, a bad exclusive agent will sell-out their clients’ bottom line during negotiations -- or whisper their clients bottom lines around their agency -- to get the deal done at any price and make a commission.

When selecting a broker, look for someone who is experienced, honest, responsive, knowledgeable, and works in the business full-time.

There are millions of dollars at stake on the most ordinary transactions in the Hamptons.  If you wouldn't hire an agent as your doctor, lawyer, accountant, or other professional, don't hire them as your broker.

Find a professional.

To discuss selling in the Hamptons, please contact me.