BTSA's, nontraditional realtor commission, etc.

[mpbro]

We may need to sell our house in the coming months. Optimal scenario would be: generate some buzz, sell it quick, perhaps with multiple bidders. I've thought about using a BTSA (bonus to selling agent), as well as a sliding commission for my seller's agent. Can any of you comment on the effectiveness of either strategy?

The house is near the Med Center. On a large corner lot in a neighborhood with a lot of teardown activity. House it 1952, 2000 sqft--not quite a teardown.

I feel that if I list it myself at teardown price, I can sell it quickly, and forget about paying a big commission. I guess the question is: could good marketing and buzz get me a premium that would net me more than teardown price?

[jscarbor]

How do you plan on generating some buzz?

Generally, Houston is not a place where you get multiple bidders unless it is a truly exceptional property.

[jm1fd]

I would think that it would be possible to sell it for above market if you incentiveize the agents properly, but you're going to have to make it very much worth the agent's while to move it...so much so that they'd be willing to give bad advice to buyers, and pressure them into paying above market. I don't think you'd be able to do a whole lot better than the 6% you'd save selling it yourself, however.

[mpbro]

How do you plan on generating some buzz?

Generally, Houston is not a place where you get multiple bidders unless it is a truly exceptional property.

I had an interesting experience when I was looking for a place in June, 2004. The property was at 2203 Swift (click for a photo). Great curb appeal, nice location, great oak trees. The house has a great floorplan and was "clean". You couldn't find anything wrong with it. However, it was listed an a then-unheard of $270/sqft. Still, they received 4 offers first DOM and it sold for 2% over list.

Looking back with a critical eye, though, the place was nothing special. Kitchen about 10 years out of date, bathrooms average. Not enough bedrooms or bathrooms. School traffic twice a day. Whatever those people did, they generatedsome serious BUZZ! If I use an agent, I want that type of experience.

I would think that it would be possible to sell it for above market if you incentiveize the agents properly, but you're going to have to make it very much worth the agent's while to move it...so much so that they'd be willing to give bad advice to buyers, and pressure them into paying above market. I don't think you'd be able to do a whole lot better than the 6% you'd save selling it yourself, however.

I wonder if 2203 Swift did not have a BTSA!

[jm1fd]

Looking back with a critical eye, though, the place was nothing special. Kitchen about 10 years out of date, bathrooms average. Not enough bedrooms or bathrooms. School traffic twice a day. Whatever those people did, they generatedsome serious BUZZ! If I use an agent, I want that type of experience.

I wonder if 2203 Swift did not have a BTSA!

Is that house smaller than the typical house in the neighborhood? If so, that would explain the "unheard of" cost per square foot, and it would also result in an overall price lower than most, making it an attractive property for those without huge buckets of money to spend on larger houses. Alternatively, maybe there wasn't much of anything on the market in the area, and so when a new listing popped up, a bidding frenzy ensued.

[mpbro]

Is that house smaller than the typical house in the neighborhood? If so, that would explain the "unheard of" cost per square foot, and it would also result in an overall price lower than most, making it an attractive property for those without huge buckets of money to spend on larger houses. Alternatively, maybe there wasn't much of anything on the market in the area, and so when a new listing popped up, a bidding frenzy ensued.

The home is a bungalow-style, but there are many of those in the neighborhood. Even among its peers (land value and structure attributes), it was pricy.

You are right about the tight market--there was hardly anything good for sale at that time. The listing agent held it off the market through the April-May rush, then had an open house the first DOM. There were lots of lookers, and that had to drive buyer psychology.

[Spike101]

In my experience, BTSA's dont work. I have asked many agents on their thoughts, and they recommend lowering the price of the home prior to offering a realtor bonus. With the increasing amount of information available on the internet, buyers are doing their own research prior to visiting homes, more often bringing listings they are interested in.

Have you thought about directly contacting builders to see if they are interested in your property?

[jscarbor]

In my experience, BTSA's dont work. I have asked many agents on their thoughts, and they recommend lowering the price of the home prior to offering a realtor bonus. With the increasing amount of information available on the internet, buyers are doing their own research prior to visiting homes, more often bringing listings they are interested in.

Have you thought about directly contacting builders to see if they are interested in your property?

I'm a builder and would be interested in looking at anything in that area. Of course I would also want to save some of that money the person is saving by not having a realtor?

[Spike101]

As a builder, do you account for the 3% on every home? Or is it done as a general operating expense based on the percentage of homes sold with realtors? Just curious.

[jscarbor]

As a builder, do you account for the 3% on every home? Or is it done as a general operating expense based on the percentage of homes sold with realtors? Just curious.

I figure I am going to pay 6% on every home. In the end if I don't use that 6% then that usually means I am making more money or that I am able to be a little more flexible or even both.