Wednesday, March 11, 2015

You've heard the term BUYER BEWARE: Well It's equally important that SELLERS BE AWARE! (A.K.A. what is a Waiver of Broker Cooperation?)

Which Picture would you Prefer?

Life if full on contradictions. The below is being shared after a recent experience that clients of mine had while looking for a home online.

If you are selling your home, you traditionally look to find an agent/agency that will Market your home to the MAX. That means finding the right agent that knows how to put your property in front of as many buyers as possible. It’s simple Economics 101, the more buyers that see your home online, the more buyers that will see your home in person, which should translate into the highest price paid.

When markets are short of inventory, you can sometimes encounter an agent/agency that will try to convince you to sign what is officially called AGENCY EXCLUSIVE Listing Agreement in tandem with a WAIVER OF BROKER COOPERATION. You need to know that this is probably NOT in your best interest.

A Waiver of Broker Cooperation means that you are restricting buyers to only use that agency. This runs contradictory to normal economics and marketing strategies that are all geared to exposing your property to the most number of possible buyers. Keep in mind that the area’s local agencies (offices)may have as few as 5 active agents to as many as 250 agents each; whereas, the Garden State MLS has over 17,000 registered agents. Why would you want to restrict your home to potentially less than 1% of the available are agents and local experts? According to NAR: "88% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001."

Selling a home with a Waiver of Broker Cooperation may share a similar result when likened to the statistics for a FSBO--For Sale By Owner. When Sellers are shown to sell their homes as a FSBO, they can put a sign in the ground, use a FSBO site to feature their home and potentially achieve some additional minimal online distribution. This is in stark contrast to using a agent/agency that will broadcast your listing out on the local MLS, advertise broker opens which puts your home on a HOT LIST, and ultimately gives you much more broad base exposure.

Statistics don't lie! In 2013, the typical FSBO home sold for $184,000 compared to $230,000 for agent MLS listed home sales. That means that the Homes sold by agents with full distribution and MLS support sold their clients' homes for 25% more than those properties limited to minimal online and restricted agent exposure. Your home is generally your single biggest investment, you should trust in your agent/agency and in the market to give you the highest possible sales price, even if you spent as much as 6% to list your home--with half going to the buying agency and the remaining half being paid to the listing agency--you still make out almost 20% more in your pockets.

Mark Slade
Keller Williams
Good Homes

Selling a Maplewood/South Orange/Millburn/Short Hills area home involves many steps and having an experienced Maplewood New Jersey Real Estate Agent and Realtor®, specializing in the Bedroom Communities of New York City in Essex/Union County— Millburn, Short Hills, Montclair, West Orange, South Orange, Livingston, Maplewood, Springfield, Summit, Madison, Chatham, Scotch Plains, Fanwood, Cranford and Westfield--by your side will make the transaction run a lot smoother. I would love to be your Maplewood/South Orange New Jersey Area Real Estate Professional! I assist both buyers and sellers in the Bedroom Communities of New York City, mostly served by NJ Transit’s Mid-Town Direct Train Lines, offering commutes of 45minute or less to NY Penn Station, with either the purchase and or sale of residential real estate.

As an Accredited Buyer’s Agent (ABR), I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home. My GO-TO team can provide you the best in Real Estate advice with regard to attorney choices, Home Inspectors and Mortgage Loan Officers

As your Maplewood/South Orange/Millburn/Short Hills/Essex/Union County New Jersey listing agent I am well versed on as your local expert in all things in the Maplewood and South Orange area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your Mid-Town Direct home to be competitive in today’s market with training to provide my clients with an in-depth Advanced Comparative Market analysis, and advice on staging. As my office’s technology officer as well as both a Zillow Platinum Premier and Trulia Premier agent, I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your New Jersey Real Estate Agent and Realtor ® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your New Jersey Essex/Union County area Realtor® (with a little bit of Morris County thrown in for good measure) is one of my truest passions, and “Helping You Find Your Dream Home” is my number one priority.

Mark Slade

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