Agents’ Sales Drop While ByTheOwner.com Sales Increase
An article in today’s Toronto Star reports that MLS sold properties in the GTA dropped 22% in March. This is in addition to an 11% drop in February, and a 2% drop in January. So far this year MLS sales in the GTA have dropped approximately 13%. Some of the reasons given for the drop in MLS sales include weather, the new land transfer tax, and the economy.
On the contrary, ByTheOwner.com’s sold properties in the GTA have increased 66% so far this year: Sold properties increased from 91 in the first quarter of 2007 to 151 during the first quarter of 2008.
Selling privately allows owner much more freedom in the stable market. For example, if you consider two similar homes being sold for $300,000, one being sold ByTheOwner and the other with an agent: The ByTheOwner.com seller is able to accept $300,000 and KEEP $300,000. However, the home being sold with the agent for $300,000 would result in the owner keeping less than $285,000 (assuming 5% commission). The ByTheOwner seller would even be able to sell their property for $295,000 and still take home $10,000 more than the home sold with an agent.
April 4th, 2008 at 9:25 am
On a $300,000 home selling on ByTheOwner.com with an offer for $289,000 the owner would accept the offer.However, if the same $300,000 home is with an agent & receives the same $289,000 plus 5% commission($15,000) that leaves the seller with only $274,000! The commission will kill the deal! I know with ByTheOwner.com we are creating more flexibility with the price & this is turn will create more deals that can close especially in a down market.
April 4th, 2008 at 12:51 pm
I have my house on by the owner, I thought I would see what an agent would list for, he said no more than 325. The next day I had a professional appraiser appraise the property at 349, and these guys are always conservative for banks. This agent wanted a quick sale, at that price the property would of sold in two weeks as the agent stated because it was so low. Worse still I had a couple look at the house, very interested but brought a buyers agent, before I met the one I talked to on my property, he introduced himself. As it turned out they both worked for the same company. I doubt this was just a coincidence. These agents are always out for no. 1, themselves. My house is listed at 355 on by the owner and with the appraisel I know that this price is probably a bit low, but thats Ok with no commisions to pay.