An excerpt from a conversation between Evan Kane, the founder of Endeavor Realty and Joseph Ferrara of Sellsius Real Estate Blog regarding Endeavor Realty’s $1 listing:
Kane:
The listing remarks are very clear that the house is not going to be sold for $1. (By the way, we use $1 because MLSNI will not allow OBO or Best Offer in the list price field) The only people that seem to be upset and/or confused are real estate agents, the MLSNI and the North Shore Association of Realtors.
In fact, the only negative response we have personally received from other agents ( I am sure many have complained to the MLS and the Association) have been in regards to the owners decision to offer a lower than "standard" co-brokerage commission (but that is a story in itself.)
What I personally find most interesting is how Realtors fail to appreciate how this type of listing works in their favor in terms of acquiring business. Unlike a conventional listing, a consumer without a real estate agent is at a clear information disadvantage in comparison to a consumer using a buyers agent.
I would even go as far to say that the one flaw in using this "Best Offer" strategy is that it requires a knowledgeable and professional real estate agent representing the buyer to be successful. A typical consumer just doesn't have the information or expertise to make an offer without the help of an agent.
Imagine if "Best Offer" listings became commonplace. I think agents could find the value proposition to the service they offer that seems to be harder and harder for most of them to find. The "Best Offer" practice could be the "magic bullet" that makes real estate agents relevant in the internet age. The flaw? It would require buyers' agents to do a lot more work than driving people around and filling in contracts.
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