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How I would sell my home knowing what I now know about
the real estate industry on the Central Coast

The real estate market on the Central Coast is no longer a Sellers market. The inventory of available homes is higher than it has been for many years. What this means is that a real estate agent can't just put a home on the MLS and expect to get top-notch offers like the "good ole days". A home now needs to be marketed in order to get noticed and bring in the good offers.

Marketing a home is not a new concept to the real estate industry, it's just not as important in a Sellers market.  When you look to hire a Realtor to sell your home in this market, you need to evaluate their marketing services. This is much different than when you look for a Realtor to help you find a home to buy where marketing services are not needed. Even though a Realtor may be great was a Buyers Agent, they may be deficient in their marketing services and skills when acting as a Listing Agent.

How much value do you put on the presentation and marketing of your home?

You pay a Listing Agent a commission to sell your home, but you are actually paying two agents; 1) a Listing Agent, and 2) a Buyers Agent.  For example, if you pay a 6% commission, most Listing Agents will split that 50/50 with the Buyers Agent so 3% goes to the Listing Agent and 3% to the Buyers Agent (the commissions actually go to the Brokerages and then the agents get a cut of that, but we'll save that for a different discussion).  In the diagram below, it lists what services each agent provides. I feel that the marketing, presentation, and exposure piece is half of the service that a Listing Agent offers, especially in today's market.

listing vs buyers agent

In addition to the market changing to a Buyers Market, we've also seen a dramatic change on how Buyers look for homes. The last time we had a Buyers Market, the Internet wasn't even being used by Buyers. Now, we have over 80% of Buyers using the Internet in their home search. While agents that have been in the industry for 15+ years have previous experience in a Buyers Market, no Realtor has any prior experience in a Buyers Market when the Internet and technology has been such a dominant real estate tool used by Buyers.

This creates a challenge (and opportunity) for ALL Realtors as they must market homes differently than they ever have. Homeowners also have a challenge in that they may already have a Realtor they have worked with previously, but that Realtor may not have the best marketing services for today's market. The choice a homeowner may need to make is to either to use that Realtor knowing they are lacking in marketing services, or choose another Realtor that may have the Best marketing but lacking the "comfort" of having previously worked with them.

Announcing a service that will get you the best marketing services no matter which Realtor you choose

To solve this dilemma, I have developed a service that no other agent on the Central Coast can offer because of the popularity and success of my real estate websites and blog. I can complement any Listing Agents service so you can have the service that I would want if I was selling my home on the Central Coast which consists of:

1) the best presentation of my home
2) the best exposure for my home, and
3) the best Realtor
Here are the specifics:

The following are what the Listing Agent should provide:

Listing Agent Services that "Can't Hurt"  (these have questionable marketing value but are won't hurt to have):

Other Recommendations

If I was selling my home, I would have a Pest Inspection and Home Inspection performed right away. This way you will know
if there is anything you may need to repair before your Listing Agent negotiates the Purchase price. If you don't, you could
be 20 days into escrow and then have a price negotiation start again. Since your home will have been off the market for
a period of time, you will not be in a good negotiating position. You might take less money just so you don't have to put
your home back on the market. In addition, if the inspections turn out to be good, this is a very powerful marketing message
and may end up getting you a premium price.  Another way of saying this is "how can you negotiate the best price of your
home when you don't have all the information about the product you are selling?


How much do Keith's services cost?

You don't pay any extra for Keith's services! Just like the Buyers Agent, the Listing Agent pays Keith from the
commission you are already paying. Plus, Keith gets paid only if your property is Sold, just like the Listing Agent.
Other types of advertising and marketing services require immediate payment. This makes Keith's service very
attractive for both the homeowner and the Listing Agent.

 

Two Options to Choose the Best Listing Agent for You

  1. If you already have a Listing Agent in mind, they must sign a referral agreement with Keith. The best way is to
    contact Keith BEFORE you sign the Listing Agreement. Keith will then contact your Listing Agent of choice. (Note:
    While Keith can complement any Listing Agent's services, he has the right to decline his services based on the
    property, or chosen Listing Agent/Brokerage).

  2. If you haven't already chosen a Listing Agent, Keith can give you a good recommendation. Keith chooses
    Realtors based on his experience in the industry and interviews them to make sure they are good at the
    other services a Listing Agent provides. Keith chooses a Realtor that is local to your area. Because the
    Central Coast is divided in six separate Realtor Associations, you don't want a Realtor that belongs
    to a Realtor Association outside the area where your home is. For example, I wouldn't hire a San Luis Obispo
    Realtor to list a home in Pismo Beach. Or a Los Osos Realtor to list a home in San Luis Obispo.  The six
    Realtor Associations are: Santa Maria, Pismo Coast, San Luis Obispo, North Coast, Atascadero, and Paso Robles.

 

If you would like Keith to recommend a Listing Agent, fill out this contact form. You can interview this Realtor (just like
you would any other Realtor). You want to be comfortable with the Realtor you choose that will negotiate the sale of your
home. If for any reason you are not comfortable with this Realtor, just let Keith know. Keith is not bound to recommending
Realtors from a particular Brokerage.  His goal is to find you the Best listing agent to assist you and to complement his
marketing services.

If you already have a Realtor in mind, fill out this form.

 

How much does Keith charge the Listing Agent?

Keith charges a Listing Agent a 25% referral fee no matter if Keith recommends the Listing Agent or the homeowner
chooses the Agent. This is a standard fee in the industry and referrals are a common practice.  Keith's contribution to
the marketing of the home justifies 25% of the commission for the Listing Agent to go to Keith. Since Keith is paid only
if a home is Sold, he is taking on the same risk as the Listing Agent if the home is removed from the market.

For a comparable service, the Listing Agent would need to hire a photographer and web designer. To gain the same
level of exposure Keith's websites receive, the only option for a Listing Agent is to use Pay-Per-Click advertising. To
even come close to the same exposure, the Listing Agent would need to spend $20,000-$30,000 a month. Even if
they spent a fraction of this amount, they would not be able to support it for many months. While the goal is to sell
your home as quickly as possible, the average Days on Market has increased.  If a Listing Agent is paying out of
pocket each month, there will become a time when they will reduce or stop investing in the marketing of a home.
Keith provides the same level of exposure for as long as your home is on the market.

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