September 11, 2006
When Homeowners Are Desperate to Sell
When homeowners are desperate to sell…
Was it only last summer that houses sold in a day, buyers were bidding up prices and sellers in some markets haggled down real-estate agents' commissions? Nationally, 39% more "existing" homes — not new ones — are on the market than last year this time. Real-estate agents are giving stunned sellers crash courses in marketing. Agents now command the full traditional 6% commissions — sometimes more — if only to use most of it as bait so they can offer up to 4% or 5% to a buyer's agent for a successful sale.
What a difference a year makes
In the toughest markets — including many Florida cities, Detroit, Atlanta, Dallas, Stockton, Sacramento and San Diego — incentive is the name of the game. One Florida agent offered a Mercedes-Benz with a house sale. Others dangle vacations or gift cards with thousands of dollars in gasoline. In its report released in August, the National Association of Realtors reported that 26 of 151 metro areas experienced outright price declines in the March-June quarter.
