Real Estate Miscellany

When you think about calling a broker for help in selling your home, or buying one, for that matter, probably one of the major national franchises comes to mind. Naturally, since an enormous amount of advertising money is spent to bring about that reaction. The advertising money comes from the 8 to 10% fee charged to the franchisee on every single dollar of commission coming into the office. Your commission dollars. Brokers apparently feel that's a good deal for them because a lot of business is driven to them, but what's in it for you? Not much. These offices characteristically have a great number of agents. You can see them generally in newspaper ads, row after row of smiling faces, (what I call the high school yearbook approach to advertising), all apparently standing by ready to serve your needs. These ads are placed for two reasons. First, it looks like a bunch of people are ready to go to work on your sale. Second, the agents have to pay individually for placement in the ad, so the broker winds up with close to free advertising. If your property is listed on the MLS, every agent in that ad, and in every other office in town has an equal interest in selling your property. The only agent with a specific and greater interest in the sale of your property is the one with whom you listed it, so all those smiling faces don't mean a thing. Except to the broker. The moral? Find the lowest fee full service broker you can find. Full service because you want your listing broker working for you in all aspects of the transaction, lowest fee because if you go on the MLS you will have "hired" every licensed agent in your market area, including all those big offices. For an agent to show preference for one listing over another for personal economic interest is a violation of the NAR code of ethics, and in California, a violation of DRE regulations. At a more personal level for a client, for an agent to place their interest before yours tells you all you need to know about their character.
On a local note. The Chico, CA MLS has 561 single family homes listed for sale today, approximately 3.5/4 times the number listed last year at this time, and our year to date sales are running just under 80% of last year. Gives you pause. Orland, CA, or Glenn county actually, has 138 sfr compared to 1/2 that number last year, although sales are about 100% of last year YTD. These are MLS figures and don't account for some increased level of FSBO offerings. To me it seems that while interest and gas prices are having some impact, the greater buyer reaction is a kind of "let's see what happens" as prices have been reducing recently. I believe the glut of home listings are caused by owners with no real reason for selling but a desire to see if it's still possible to cash in on the intense price run-up of the last couple of years. I'm hoping sites such as Zillow.com will help us, and help home owners catch a dose of reality. It would be good for everyone.