Do homes sell themselves in a hot market?
Over the past few years the Vancouver, WA real estate industry has been red hot and many homeowners and realtors have cashed in.
In 2016-2018 we saw housing inventory hit all-time lows while demand was through the roof. It became the norm for agents to list a home in the Multiple Listing Service (MLS) and receive multiple offers over the list price before they could even shut their eyes for the night. There were so many buyers trying to buy the same home that the average listing agent was able to move product without spending a dime to professionally market the property, leaving homeowners wondering, “What did my agent do to deserve a commission?
Then came the emergence of the “Discount Broker” and more homes being listed for sale by owner. Yet in a red-hot market, where demand drastically outweighed supply, most of these homes listed by owner or with a discounted broker sat on the market and went unsold.
What were home sellers left with?
They turned to the true professionals to market and sell their home. In fact, within six months of trying to sell on their own, 85% of home sellers turned to a full-service real estate agent to list their home. How much money did that decision cost the homeowner? Let’s take a look at the numbers…
Average monthly mortgage payment (not including property taxes) = $1500 x 6 months = $9000
Average price of home in Vancouver, WA = $350,000 x 2.5% listing side commission = $8750.
On average homeowners who tried to sell their home on their own or with a discounted broker COST themselves $250 or more, and more importantly, cost them time.
When the market begins to shift, when homes no longer sell themselves, average is not going to cut it.
When is Vancouver going to see the next shift?
The numbers suggest we are already seeing a shift in the market and full-service brokers are going to be needed more than ever. From this time last year, new listing inventory is up 13.6% while pending sales are down 5%. In other words, more homes are coming onto the market and less homes are going off the market. This naturally creates an increase in home supply. Discount brokers offering to list your home for 1-2% simply are not going to get the job done. At Prestige Realty Group we spend nearly 1% to market and sell a home.
What if there was a better way? What if you could hire a professional from the start, sell the home in record time, and then decide how much commission your listing agent deserved? We have the solution. Call us today and ask about our Flexible Commissions.