As I am sure you have heard, the economy has affected real estate values over the past few years. With these lower real estate values, people do not have a lot of equity and are not able nor do they want to pay a 6% real estate commission and lose money.
In November 2008, I had my daughter. I wanted to continue with my real estate business, but also wanted to be home more to spend time with her. My solution for this was to work with Sellers in a limited capacity. I had tried limited listing programs with a few sellers before having my daughter and the success rate was huge.
With the limited listing programs, the Sellers do not have to sign a contract for a 6% commission. There are two different programs that I offer. One program requires Sellers to do showings and some marketing. They pay me one flat fee and receive such things as MLS exposure and assistance with all paperwork. The other option is where I do everything but at a reduced commission percentage. By going with a limited listing program, my clients are saving money and in many cases avoiding short sales or foreclosure. Many of these Sellers would not have been able to buy again if they had not sold using one of my listing programs.
It has been two and a half years since I began implementing these listing programs on a regular basis. Since then my business has been booming. In fact, I have had one of my best years to date. I do continue to offer the full 6% listing and work a lot with buyers, but a big part of my business has shifted to helping Sellers in a limited capacity.
Of course, the other huge benefit for me is being able to spend time with my daughter. My time isn’t consumed with holding open houses and marketing properties. The Sellers are doing these things – saving them money and me time! These early childhood years go by so fast and as a parent you don’t want to miss a single minute. Being a real estate agent, I have been fortunate and have not needed a nanny or day care for my daughter. In most cases, I can work any time, any day, and most importantly, around my daughter’s schedule. We get to attend various classes each week and do other fun outings without having to wait until the weekend to find the time. This career has proven to be ideal for moms!
In the future, I do see the real estate market shifting to more limited service listings and reduced commission full listings. Until things really turn around and Sellers have a lot of equity – why would they want to pay out all that commission money?
Written By Carrie Hill, mommy of one. To contact Carrie of Rocky Mountain Real Estate or learn more about her real estate strategies, please see her page.
