Agents: NEVER List a Property for All Cash

Agents: NEVER List a Property for All Cash

Limiting Financing or Discouraging Financing is a HUGE MISTAKE and is Hurting Your Seller…

Listing agent skills are not what they used to be. Many agents, rather than directing their sellers on how to get the best sales price, are now caving in to the fears of their clients and allowing them to run the transaction. A listing agent is exactly that, an agent for the seller who should be directing all aspects fo the sale. One of the listing agent’s job is to make sure the property is “marketable.”

A marketable property means that it is also financiable and provides access to the majority of potential buyers. Marketability aslo guarantees that you will achieve the price at the upper end of the price range for your property. This will not happen if you discourgage financing because your seller is too lazy to perform repairs, making the property unfinanciable. Unfinanciable properties are very, very unmarketable becuase they are only available to cash buyers, eliminating over 80% of families looking for property. It also eliminates most first time home buyers which is 26% of the market right now.

Limiting Marketability, including financing, can reduce the sales price up to 50% depending on the issues. No competant lisiting agent should allow that to happen. All listing agents should be prepared to explain to their client how much money they are leaving on the table if they do not perform reapairs or upgrades prior to the close of escrow.

Please read my blog on financing repairs with the buyer’s down payment for ideas. Also, rehab loans can also solve this problem.

Last. The listing agent is solely responsible to SUPPORT the price he or she is listing the property for. I cannot tell you how many times this value was pulled out of the listing agent’s b** when I asked. Sales closed in the last 3 to 6 months are used to support value or unusually high recent listings. It is the listing agent’s job to inform their client to make a listing marketable to secure maximum profit.

Ralph Migliozzi,

Broker Originator Serving Northern California 

NMLS 282851 DRE #01002038

(p) 530-330-3073