This question can be answered in one sentence.
But first a little background:
Regular surveys across the United States by Realtor Associations show similarities in terms and conditions of accepted offers that Realtors and inexperienced homeowners often overlook — until too late!
The below market data comes from the MN Association Of Realtors https://www.mplsrealtor.com/market-data/ for the month of March, 2023:
Inspections waived 35%
Cash 23%, Conventional 66%, FHA 5%, VA 2%, Other 4%
Average purchase to list price is 101.2%, Median purchase to list price is 101.4%
Seller contribution towards buyer’s closing costs 21%
Home warranties included 10%
Contingent on the sale of the buyer’s home 11%
Escalation clauses included in 4%
Appraisal gaps included in 23% of financed purchases
One Sentence Response
Because it has been scientifically proven time and time again that a listing commission will handcuff the homeowner from offering terms, conditions, and assistance to buyers to increase the chance of winning offers.
Now for the elongated response:
Asking a homeowner to pay $10,000 to $20,000 in listing commissions and again to discount or offer $10,000 to $20,000 to help buyers is too SCARY.
Unfortunately, without removing the listing commission many sellers will be pressured to discount price to attract lower price bracket buyers who may or may not be interested.
It should be noted that discounting the price of properties will not have the same effect as helping buyers to purchase; so let’s compare:
Seller A has the exact same property as Seller B for sale.
Same price
Same size lot
Same square feet
Same physical attributes
Same tax
The two properties are located across the street from each other in a town home community. The only difference is Seller A chose to sell his home through a listing agent who charges a listing commission. Seller B chose to sell through a Homeselling Ai agent to skip the listing commission.
In this apple for apple comparison the empirical evidence will be in the fact that Seller B has the flexibility to leverage the same money that Seller A had locked himself into a listing commission by offering incentives, assistance, and inspection/repair credits to create or increase higher demand for the same property.
In fact, by creating and increasing demand for the same property Seller B increases his chance of receiving multiple offers to escalate for full or higher purchase price. In many markets offering $1000 to $10,000 to help buyers, albeit for repairs, interest rate buy down, closing cost, financing assistance, or other needed expenses can skyrocket an extra $5,000 to $50,000, or more in profit.
Be sure to ask your Homeselling AI agent for your free report WE’RE TAKING THE SCARY OUT OF REAL ESTATE to learn secret #2 how skipping the listing commission can protect properties from having to discount. Visit www.payperoffer.com for more detail on how Homeselling AI has safely and effectively replaced the SCARY discount.
Homeselling AI invented the NoDiscount process since 2003 to help consumers to remove the complexity of having to discount properties to find buyers. Now with accelerated technology Homeselling AI makes it even easier to skip the listing commission.
