The post below was first published on August 5, 2008 but is being re-published in response to recent media attention to the state of residential real estate.  An October 29, 2008 article titled “Homeowners’ Perception of home values not grounded in Reality” by Susan Miller published in Bizjournals has been discussed in numerous forums, and has appeared in the New York State Association of Realtors web site.  By the time homeowners finally accept the fact that their home will not command the price they optimistically believe it is worth, – an assessment typically based upon emotion, e.g., I saw my neighbors house sell last year for $325,000 and my house is nicer, or based upon statements by real estate agents trying to get a listing, e.g., your home is well priced, my marketing plan can get you the results you need ( what we call puffing a listing appointment) – the homeowner is stuck in a long six month listing and is forced to accept a lower price and pay a ridiculously  high commission just to receive the low price. Read about a story that illustrates this point:

Jon Cooper walked into my office in Amherst, NY to talk about his dilemma.  It seems he has a beautiful custom built home in Warsaw that he has been trying to sell traditionally at 7% commission.  He priced around $309,000 and was willing to pay about $20,000 to a real estate broker to sell his home for about $300,000.  He went through two well known real estate brokers without success and he was now living outside Lake Champlain along New York’s northeastern boundary.  Yet, even after two six month stints on the MLS with high commission real estate brokers,  listening to the hype about broker opens and tours, the comments that the local agents “have buyers”, Jon was still hesitant to use America’s Choice.  He had heard only positive descriptions from people who used us, yet, the negative comments from real estate agents continued to have an impact upon him.

Jon finally chose to utilize America’s Choice in April of 2008.  He purchased our $1,295 package for heavy direct exposure and he chose to utilize Real Estate Direct’s exclusive agency program to continue on the MLS without the requirement of being forced to offer 3% or more to buyer’s agents. His neighbor showed the property for him.  We advertised his home in Rochester, Buffalo and Syracuse.

I see Jon sold with America’s Choice in June of 2008 for $299,000 at 0% commission.  Jon saved $20,000, but just as important, Jon sold at the market value.  Jon’s story is reflective of many of our customers and illustrates the reason to  use us: better exposure results in a higher price in a shorter period of time.

Now, lets look at a theme I have been discussing.  It is to have trust in our system rather  than listening to the negative comments from agents desiring to list your home at 6 or 7%.  Look at 100 Timarron Trail and 68 Timarron Trail.  Both are new built homes around $200,000 in Greece, NY.  Both recently sold with us.  Yet, a neighbor I spoke with decided to sell with a 7% broker because “they have buyers”.  It never ceases to amaze me that an unsupportable comment like that is an effective sales technique.  I watched as this neighbor started higher to cover the commission and systematically lowered the price to about the same price as our homes in order to sell.  So this neighbor sold at the same price, in a longer period of time, and paid about $14,000 for services rendered.    We had a seller in Pittsford list with us at $399,000 even though our comparables showed the home to be worth about $375,000.  He told me that a well known “power” agent told him he would sell around $395,000.  He did not receive offers through America’s Choice at that asking price and he called me personally. He said he had to walk away with $380,000.  I suggested that the  home was worth around $375,000, that he should reduce his asking price to $379,000 and he should be able to walk away with $370,000 IN HIS POCKET.  He didn’t take my advice, but chose to list with the “power agent” in Rochester.  Obviously, he believed the hype.  This agent says she has “luxury homes” and that a seller can be a part of her “collection”. I watched as he started at $399,000 and systematically lowered his price over a five month period.  Ultimately he settled on $379,000 and sold for $370,000.  That means he walked away with about with $344,000.  YES, $344,000 WHEN HE  EXPLAINED TO ME THAT HE HAD TO WALK AWAY WITH $380,000.  Think, talk to sellers who stayed the course with us.  Now is the time more than ever to trust America’s Choice and all the professionals who comprise our team.  Regards to all.