July 27, 2007: A by-owner home seller is no match for a skilled Phoenix Realtor
We're about to list a home for sale in a fairly pricey neighborhood, so we are very aware of our competition.
We knew a similar home was ready to go on the market, but we were convinced it would be marketed as "for sale by owner," so we didn't feel threatened.
Why not? Because a by-owner seller is no match for a skilled listing agent.
I'm willing to concede that there are some unskilled listing agents, but that doesn't matter to us. We compete against professionals, not amateurs.
In fact, the seller instead went with a limited-service listing, which is slightly -- but only slightly -- more likely to succeed.
By now, go-it-alone sellers are thin on the ground. You can get a true MLS listing at a range of discount prices, from $3,000 down to $99.
So why is a limited-service listing unlikely to succeed? In this market, a home must be marketed perfectly from Day 1 or it will sell slowly and at a deep discount, if at all.
Except for the MLS listing itself, the home will be offered by owner in every respect: priced wrong, prepared wrong and inaccessible to buyers and agents.
This is not a necessary consequence, but it is very common.
In the case of our newly listed competition, the home is offered at $200,000 over its market value. It will not be a threat to our listing.
But it wouldn't be a threat even if priced right. A professional home marketer will bring too many weapons into battle for an amateur, no matter how dedicated, to compete.
Even worse, a limited-service listing shouts out a warning to buyers' agents to stay away.
Why? Because it is being marketed by an amateur. The seller will have no one to turn to for advice, exposing the buyer's agent to double the legal liability in the transaction.
There's nothing wrong with negotiating the best price you can get for a full-service listing. But in our opinion, limited-service listings are a false economy in this market.
Greg Swann is the designated broker for BloodhoundRealty.com, a full-service Metropolitan Phoenix real estate brokerage. This article originally appeared in the West Valley regional sections of the Arizona Republic.
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