“I think a large real estate company will bring more buyers to my house than a smaller boutique real estate company, such as yourself.”
Michael Guglielmo, an agent here at Herman & Co, signed a listing. The seller didn’t heed Michael’s advice on price, and priced the property at $495,000, approximately $75,000 higher than EVERY recent comparable sale in the area. About 5 months into the listing agreement (and several price reductions later), Michael finally got it priced closer to market value at $434,999. With that price, the showings increased and shortly after, an offer was presented to the seller. After some negotiating, the buyer’s final offer was $405,000. The seller countered close to asking price and the buyer walked away and purchased something else.
The listing expired about a month later and they listed with Neuhaus Realty, the second largest real estate company in Staten Island. They listed the property at $429,900 and within a year, they slowly reduced the price to $399,900. No deal occurred and it expired.
The seller then listed their home for $389,900, with Robert Defalco Realty, the largest real estate company in Staten Island. After 2 months on the market, the property had an offer and closed for $360,000. But Robert Defalco Realty didn’t bring the buyer.
As chance would have it, Herman & Co brought the buyer. If the seller would have heeded Michael’s advice, they would have closed a year sooner and walked away with an additional $45,000!
The point is that a potential buyer can come from any source. As a matter of fact, according to the NATIONAL ASSOCIATION OF REALTORS®, approximately 95% of homes sold are not sold by the listing agent! Another agent brings the buyer. Not to belittle the listing agent…the listing agent handles negotiations for the seller as well as a myriad of other functions throughout the sale of a home. They need to be well versed in situations that could create havoc throughout a deal such as inspection negotiations, contract negotiations, and municipal issues as well as other things of that nature.
I always try to explain to sellers that the most important factor is to find the right agent that you feel comfortable with because you will be dealing almost entirely with the agent, and not the agency. The real estate agency acts as the support for the agent. The seller usually has little to no contact with the agency.
You have to trust your agent to guide you through the home selling/buying process. The same way you would trust a doctor to treat you. And just as you would get a second opinion from another doctor, you should interview more than one agent before you sign a listing contract. Do your homework, be comfortable with who you are working with, and hire the right agent.