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Sellers: The commission comes out of your pocket

Here is something to consider if you plan to sell your home this year. Early indications are that both listings and sales will be down this year for Winnipeg’s real estate agents. Many would-be buyers and sellers can be expected to sit on the sidelines until it becomes clear what effect the recession will have on this market.

So expect agents to be even more aggressive than usual when dealing with ComFree clients. You will be deluged by calls from agents who’ll tell you they have someone who wants to buy your home now, if only you’ll list with them, or that you have to be on the MLS to sell, or that they can get you so much more they’ll cover their own commission.

Experience suggests these claims should be viewed with suspicion. For the agent with the ready-made buyer, tell him you won’t sign a listing agreement, but he’s welcome to bring his buyer around and you’ll negotiate something if a sale ensues.

To the claims you have to be on the MLS or that an agent will net you more than a private ComFree sale, remember that price is what ultimately sells a home. Paying a commission always makes it harder for you to price your home to sell.

But every year, some ComFree clients switch to an agent. Some sell and some don’t. But even those who sell usually realize after the fact they would have been better off lowering their price with ComFree than listing on the MLS.

Every day, I drive by two homes that illustrate the point. One is a new two-storey on Lindenwood Dr. The owners listed with ComFree Oct 10 for $379,900. By Nov. 27 the family had to move out of town and listed with Re/Max for $389,900, lowered later to $379,900. After two months on the MLS, the listing expired unsold. No MLS magic there.

A nearby deluxe condo bungalow off Dovercourt Dr. was listed with ComFee in April at $464,000. It was overpriced and didn’t sell. On Sept 5, the owner listed with an agent at $459,000, which dropped to

UNSOLD WITH AN AGENT
LINDENWOOD DR.

Listed with ComFree Oct. 10/08
List Price with ComFree: $379,900
Listed with Re/Max: Nov. 27/08
List Price with agent: $389,900
Price Later Reduced to: $379,900
Agent’s Listing Expired Jan. 30/09

DOVERCOURT DR.

Listed with ComFree Apr. 30/08
List Price with ComFree: $464,000
First Listed with agent: Sept. 5/08
List Price with agent: $459,000
Price Reduced (Oct. 3) to: $449,000
Price Reduced (Oct. 28) to: $429,000
Listed with new agent: $429,900

Remains unsold


$449,000 before that listing expired. A new agent listed it at $429,900, $34,000 less than it was priced with ComFree. It still hasn’t sold. If he were still with ComFree, the owner could drop his price to $399,900, be no worse off than he is now with the realtor and be better-priced to sell. It’s price, not the MLS, that sells homes. The MLS alone could not sell these two beauties.


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