Is a Limited Service Listing a good idea? The old adage that you get what you pay for truly applies here.
Notice The Upside Down MLS Photo ?
This is how one property was displayed in an MLS photo on market for over 69 days. Apparently, in all that time neither the limited service agent nor the owner bothered to look at or correct the picture orientation. I posted previously about poor MLS photos but not correcting the photo orientation after all this time is just lazy.
“DO NOT CALL AGENT 4 SHOWINGS!”
Limited Service Listings became an option several years ago. Limited normally means you can pick a level of service you are willing to pay for. In most cases, it’s just list the property in the MLS with upgrades to include photos, signs, lockboxes and possibly a showing scheduling service. After the agreement, the listing agent doesn’t even answer calls on the property or advise on the real estate purchase contract.
Most buyers agents hate these abominations because to serve their clients appropriately they must do the work of both agents, assume twice the liability & often for less money. This particular listing is only offering 2.5% commission.
It’s not about the money, the buyers agent can’t get accurate or timely information, showings can be difficult to schedule and they must deal directly with the seller whom may not have knowledge of how real estate transactions work, experience with standard forms, title work or what can go wrong.
No Real Estate Advice Or Representation
Sellers are happy that they paid so little until they realize they were left dangling in the wind, no representation, no advise, no one following up on the listing photos, timelines or paperwork. Yes, it is sideways but why not at least take the time to close the cabinet doors?
I had one of these sellers ask me when he could sell his car? He was from a foreign country and as soon as his house sold, he was selling his car and other possessions so he could return to his homeland. Unfortunately, I could not advise him since I didn’t work for him. What if he sold the car based on my advise and the transaction fell through? I felt sorry that he didn’t have representation but it was his choice.
Sure, you can save money, you can download your own forms and you can act as your own lawyer and doctor too. It makes a lot more sense to hire a professional Full Service Realtor when listing you home for sale! Unless you are a sophisticated seller with current real estate transaction and market knowledge don’t fall victim to the limited service trap.
Discount and Internet Brokers – Use An App And It’s Unicorns
More recently we have seen discount brokers and internet buyers. Be aware that there is always a catch. Discount brokers will tell you they are full service but something has to give somewhere and it’s normally what they pay their employees.
Often, the agents working for these outfits are new to the industry. They were recently licensed and have minimal experience and databases of clients or know how to prospect for their own leads. They like being paid a base pay versus commission so they can make ends meet. Is that the type of representation you want?
The we buy you home by clicking on an App is another recent business model to be wary of. It will look like you are saving money until you add up the fees and the required repairs. Sure, no showings and you just further discount the price in lieu of repairs but you will be taking home much less than if you sold the traditional way. You ARE paying a fee, a convenience fee that is pretty hefty.
Call Keith Laursen, your local Van Alstyne Fathom Realtor for Full Service at 469.233.1234
