Free Real Estate Services

Some real estate agents were discussing real estate services (say that one fast) and one remarked, "What other professionals work for free?"  We all laughed and then thought more seriously about this dilemma.  It's true, at least in St. Paul, that a lot of real estate services are provided at no cost to the home seller.

We each thought back to this last year when St. Paul listings were not selling for months and then only after drastic price reductions.  Buyers had taken control of the real estate market and weren't willing to pay the high prices of previous years.  Each agent had paid out of their own pocket for the following items (just to get the property on the market):

• Sign install between $40 and $50.
• MLS listings is not charged by the property but the agent pays $30 per month for access.
• Virtual tour between $50-$300 per property.
• Brochures for the box have to be laser printed so the ink doesn't run in wet weather.  Cost per piece runs about $.50 to $1.10 or if printed "in house" about $ .30 apiece, so minimum of $30 for the first run.
• Just listed post cards about $100 for the first 100.
• Newspaper ads on the newspaper's website is $95 per month.
• Paper ad in the newspaper is minimum $50 for one weekend and the smallest size.
• Electronic lock boxes are $90 apiece with a quarterly maintenance fee.
• A system for answering showing requests is $30 set-up fee per property.
• Website exposure depends on the host.  A property specific site with its own domain could run at the cheapest about $40.
• In house brochures advertising the neighborhood and other attractions of the house run about $50 for a small quantity.
• Copies of the truth in housing, sellers' disclosure and other pertinent info about $20.
• Many hours put into communicating with the client, researching the market price opinion, creating the sign box brochures, the inside brochures, writing supplements for the MLS, writing ad copy, taking pictures, editing pictures for web publications, creating postcards, ordering the sign install, installing the lock box, etc., are free!

(The list of expenses above just scratches the surface.  It doesn't include overhead, licensing fees, desk fees, etc., which are the cost of being a REALTOR.  It only includes those costs specific to selling a property.)

When the listing doesn't sell, the agent is out a lot of money for the items paid out of pocket and has provided their client with a lot of free professional services!  Did I say free?  When a Saint Paul real estate agent takes your listing, they are personally investing a lot into the success of your sale.   They are motivated to get the highest price, but also a realistic price, because if the house doesn't sell, the real estate agent doesn't get paid either!  There aren't any other professionals I know that base getting paid on the success or failure of the project.  Hiring a real estate agent may be your best deal in town!

Comments

[Bonnie Erickson]

Thanks, Carole. I always aim to please. Now I've got to go find that top ten list! ;-D

[Carole Cohen]

Bonnie, you always post such clear and concise information that truly tells the story; congratulations on being on the list for Top Ten Real Estate Posts of the past year -- you are very deserving!