Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Listing Homes for Sale - Part 5 of a 5 Part series

Link to Listing Homes for Sale - Part 1 of a series

Link to Listing Homes for Sale - Part 2 of a series

Link to Listing Homes for Sale - Part 3 of a series

Link to Listing Homes for Sale - Part 4 of a series

This series focuses on effective and efficient methods of meeting with Sellers who want to sell Phoenix area Homes and Real Estate, determining whether there is a good fit between the Seller and the prospective Listing Broker, and the technology that is available to streamline the process.

Professional service fees, activation date of the listing in the MLS, and what needs to take place between now and when the doors open to the public 

So now it's decision time:

  1. Does the Seller believe that the marketing plan offered by the Listing Broker meets their needs?
  2. Is the Seller willing to list the home for sale at a price that is supported by the current market?
  3. Is the Seller agreeable to the professional services fee?

If those three stars are in alignment, you have a great new listing!

So - how does the discussion go?

Mr & Mrs Seller - As I mentioned at the beginning of our discussion, we need to cover three key areas:

  1. First - my marketing plan.  We've just reviewed that and you tell me you believe I can effectively market and sell your home.
  2. Next - We need to discuss List Price. We've covered that so we can move to the next step, which is:
  3. Professional service fees, activation date of the listing in the MLS, and what needs to take place between now and when the doors open to the public.

Either:

  1. Option A - The Sellers Agreed to a List Price supported by Market Data
  2. Option B - The Sellers DID NOT AGREE to a List Price supported by Market Data

Option A - The Sellers Agreed to a List Price supported by Market Data

Mr & Mrs Seller - based the List Price here is an estimated Net Sheet that includes my x% professional service fee - which is split between me and the Buyer's Broker - w% to my Broker and y% to the Buyer Broker in the MLS.  Variables that may change this number include any prepayment penalties on your current financing, and HOA transfer fees.

Tony - We're not comfortable with the commission amount.

I can increase it if you prefer! :-)

No - Another agent told us they would help us for 1% less than your fee.  We want you to lower your commission.

I understand.  Everyone wants the best deal possible.  Let me ask you a question.  Did the other agent who has a different pricing model offer the same marketing model that I do?

Well....no.

Then we aren't really talking apples to apples here, are we.  In fact, if you asked the other agent to help you and do all the things included with my marketing model, don't you think the commission they would ask for might be different?

It could be.....

Then, quite frankly, you have a decision to make.  You can list your home with me given that you've already agreed you believe our marketing model will get your home sold for the most amount of money, in the least amount of time, with the least amount of inconvenience for you - or you can list with the other agent for a different commission amount, and let them help you.  I've found focusing on the bottom line, rather than the commission line, is the most relevant number - wouldn't you agree?

Yes.

Then let's review the listing documents.......

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Option B - The Sellers DID NOT AGREE to a List Price supported by Market Data

Mr & Mrs Seller - based the List Price you want here is an estimated Net Sheet that includes my x% professional service fee - which is split between me and the Buyer's Broker - w% to my Broker and y% to the Buyer Broker in the MLS.  Variables that may change this number include any prepayment penalties on your current financing, and HOA transfer fees.  Please note that there is an upfront non-refundable retainer in the amount of $x,xxx that will be credited back to you at close of escrow.

Tony - We're not comfortable with the commission amount or the upfront retainer.

I can increase it if you prefer! :-)

No - Another agent told us they would help us for 1% less than your fee.  We want you to lower your commission, and we don't want to pay any upfront fee.

I understand.  Everyone wants the best deal possible.  Let me ask you a question.  Did the other agent who has a different pricing model offer the same marketing model that I do?

Well....no.

Then we aren't really talking apples to apples here, are we.  In fact, if you asked the other agent to help you and do all the things included with my marketing model, don't you think the commission they would ask for might be different?

It could be.....

Then, quite frankly, you have a decision to make.  You can list your home with me given that you've already agreed you believe our marketing model will get your home sold for the most amount of money, in the least amount of time, with the least amount of inconvenience for you - or you can list with the other agent for a different commission amount, and let them help you.  I've found focusing on the bottom line, rather than the commission line, is the most relevant number - wouldn't you agree?

Yes.

Regarding the upfront fee - this is purely a way of making sure we all have a vested interest in getting the property sold.  Given that the initial List Price is significantly above what the market supports, and given there is no way to insist that you lower the price at a future date, the upfront fee helps offset my upfront expenses in a situation where the risk of failing to sell is significant.  I can waive the upfront fee, but only if the property is listed at a price supported by the market.

Or - we can agree to go our separate ways.  I would like to help you get your home sold - but frankly I'm just not in the business of taking over-priced listings at significant out-of-pocket expense only to have them languish on the market until they expire - causing you a lot of grief and costing me a lot of money!  Can you understand why that is a prudent business practice?

Yes.  So you're saying that if we list at a price the market supports then there is no upfront fee, but if we want to list it at the higher price we've got some skin in the game? 

I couldn't have said better myself!  We have three options:

  1. Option A - List at a price supported by the market and pay no upfront fee
  2. Option B - List at a higher price and pay the upfront fee
  3. Option C - Agree to go our separate ways

Any one of those is OK with me.  Which would you prefer?

Option A 

Then let's review the listing documents.......

Option B

Then let's review the listing documents.......

Option C 

I wish you all the best with the sale of your home!

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The end result of this discussion MUST be full agreement between Seller and Listing Broker regarding what the initial List Price, pricing strategy and compensation will be.

Don't be afraid to walk away from an over-priced listing that will cost you time, effort, money and grief!

If you are moving forward with the Listing, explain to the Seller what needs to be done to get the property ready for showtime, and stipulate a specific MLS activation date in the Listing Agreement that allows all the pre-showtime activities to be completed prior to activation.  You want the property to show as well as it can to the first group of Buyers to walk in the door.

UPDATED: See Getting Ready for Showtime! Part 1 of a series

If you are considering selling a home or real estate in the Phoenix area you owe it to yourself to talk with Haven Express at Keller Williams Realty Professional Partners to determine whether Tony Marriott is the best real estate Broker in the Phoenix and Scottsdale metropolitan area to help you with the sale of your home!

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

Great post tony. But I need to ask you one thing.  Does this script always work for you?
Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) about 12 years ago
Very good Tony. I really like the retainer fee pitch. I think I may have to borrow that. What an excellent way to demonstrate how we are the ones that are going out of pocket. Do folks ever agree to the retainer or do they normally agree on your pricing?
Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) about 12 years ago

Lanre,

It always works in the sense that any of the three outcomes is fine with me.  I don't work with any other alternatives.

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

Bryant, So far pricing has been the direction since I introduced the retainer a couple of months ago.  There were a few who considered the retainer, but reality got the better of them!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Hey Tony....had to bookmark this for tomorrow....so I can read all of them.....it's 9pm....just got in at 6:30 and trying to catch up on everything.....
Posted by Celeste "SALLY" Cheeseman, (RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE (Liberty Homes) about 12 years ago
Sally - Thanks for reading!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

Excellent series Tony - thank you.  If you don't mind my asking how much of a retainer do you ask for, is there a percentage or a flat fee?

Cheers,
Uzi Husain
Arizona Realtor, serving Goodyear & The Phoenix metropolitan area 

Posted by Uzi Husain about 12 years ago

Uzi - I can't discuss specifics on commissions as it would make Mr. "Anti-Trust" Sherman very unhappy!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Thanks Tony. Someone recommended to read this series and I'm glad I did.
Posted by Wayne B. Pruner, Tigard Oregon Homes for Sale, Realtor, GRI (Oregon First) over 11 years ago

Wayne B. Pruner I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!  

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Wishing you a prosperous and Happy New Year!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

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