I have been thinking about a perplexing phenomenon. Over the years I have seen highly motivated, intelligent, and seemingly rational people exhibit a rather strange behavior.  They are the people who cut short their listing with America’s Choice in order to list with a real estate broker charging 6, 7, or 8%.  What do they have in common?  Each of these people, while listed with America’s Choice,  staunchingly refused to reduce their asking price, or if they did reduce their price, they did so for only a very short time. Yet, once listed with the high commission agent, they reduce and reduce their price.?!

Recently, a successful lawyer listed his home with us.  Our appraisal system showed the home to be worth somewhere around $260,000.  We shared this information with this attorney.  He listed at $294,000. Our system showed a lot of action on the website for his home.  He called to tell us he was not satisfied that his home wasn’t sold.  Through discussions we learned that real estate agents were telling him that his home was beautiful, showed well and they couldn’t understand why it hadn’t sold.  We concurred that his home was beautiful.  We directed this attorney to the comparable homes and the appraisal data showing his home to be worth somewhere in the 260’s.  He lowered his home to $284,900 for a few weeks then abruptly called to say he was listing.  He was with us for less than 3 months. I watched as his home sat on the market with his agent at a price of $284,000.  After expiring with his first listing agreement he signed up with another agent at 6%. But this time the listing price was $269,000.  After almost another four months it has finally sold this week for $262,000.  I know he would have sold at this price with America’s Choice in less than one month.  Over 90% of homeowners who do not cut their listing short sell with us.  So what happened here?  I have seen this same scenario played out a number of times.  People drop their price and still pay tens of thousands of dollars to real estate agents.  Why? 

An even stranger story is that of a local physicain.  He sold a lot in Orchard Park with America’s Choice for about $150,000 – yes, just for the lot.  No commission at all.  He then had a home to sell in Orchard Park.  We listed it at 2.5% Real Estate Direct at an optimistic price – and we told him so.  Yet, he wanted to try that price.  The price was around $390,000.  We obtained an offer of $360,000.  The commission would have been 2.5%.  The doctor would have netted about $352,000.  Well, the doctor rejected the offer and would not even counter.  The listing expired with us. The doctor listed with a large traditional real estate firm.  We have watched as the listing expired after 6 months.  The price kept dropping and we now see it listed in the high$330’s.  Yes.  That means even at full asking price the best the doctor can walk away with is about $320,000.  That is over $30,000 less than he had on the table with us.  What does  this mean?

I am hypothesizing that it is the statements of real estate agents telling these sellers that the reason they have not sold is simply because they are using America’s Choice rather than using a 6,7 or 8% real estate broker.  It seems these sellers believe what they are hearing from real estate agents or want to believe it.  The problem is that after listing they are stuck six months.  Why do these sellers not have faith and trust in us?  I have written about recent university research showing companies as well established and entrenched as America’s Choice clearly obtain as high or a higher sale price as good real estate brokers.  I truly believe that on the whole America’s Choice obtains a higher sales price in a shorter period of time. I have written about our long history in Buffalo and Rochester and the thousands and thousands of success stories. Just look at the incredible success our Erie, PA office has had in the suburb of Millcreek.  We have shown in our magazine that we have sold hundreds and hundreds of homes on the same streets. In collaboration with 2.5% Real Estate Direct we can offer access to the multiple listing system websites.  Our employees are honest, solid, well trained, knowledgeable and above all willing to help our customers.  There is nothing missing from our program.  So why the story like our attorney above, and others?  Do people just give up?  When they list, do they simply think, “just sell it.”  Are they so disappointed in the market, or depressed at the value of their home, that they just give up, lower the price and pay high commissions?  I have to think about this some more. I can say, wholeheartedly,  ”Don’t give up”.  We can and will empower you to sell at the highest price in the shortest time.   All it takes is trust in us and a fair review of the true facts.  We want eveyone to be one of the 90% success stories (it will then be 100%). Have a good night.