For buyers, there are 4100 houses and condos on the market. You look at six homes, like 1 or 2, but continue researching all the homes and the 1 or 2 that you like sell to another buyer who is ready and decisive.
Then next week, you go out and, like, 1 out of 5 homes, and you are comparing this home to the homes you saw last week that sold.
Next week, it will be more of the same, and months later, you will compare the available home to what the market was three months ago and the home that sold.
What if you had just submitted an offer and picked the best available home?
Chances are you would be ahead of the person who didn't buy.
Most of us underestimate how many homes we've looked at. When you add in open houses, showings, and online tours, you are an expert on what will work for you. You have to trust it and make a decision to do it. There are a bunch of safeguards and inspections to cancel escrow and get your deposit refunded. The happiest clients I see buy in the first 7-10 homes we see.
This is the experience of over 1200 homes sold. George
For sellers, you delay the decision to list and which agent to work with because you have these concerns.
(you want a new home but don't want to pack up and move. You don't want to pay today's mortgage rates. Are you uncertain if the next home will be better than this one, and will it all happen in time so you're not homeless or pay two mortgages?)
You decide to talk to an agent about selling. The price is about what you thought. The agent's commission is in the range you expected. They have sold many homes, so you feel they could do a competent job.
But what if you found an agent that will price your home higher and charge less commission?
1% less is $10,000, and a $25,000 higher asking price is $35,000 more in your pocket. Will it really sell for more by picking a cheaper agent and increasing the asking price?
Your decision will delay your plans to sell, add stress, and increase the odds that your home will not sell. Right now, 31% of San Diego County homes don't sell.
So, you quickly eliminate any agent who tells you the truth about the asking price and the commission required to sell it for the highest price.
Now, you think I am a genius. What if I found another agent who would take another 1/2% less and price it $50,000 more? That's a total of $15,000 less commission paid and $50,000 more in price, so $65,000 more in your pocket.
Why stop there?
Why not sell it yourself and increase the asking price to $100,000 more than the value? That's another $120,000 in your pocket.
Here's the problem: You want to find someone who tells you what you want to hear instead of what it takes to achieve the results you want.
(You want to find an agent who believes in a sky-high price and does it cheap).
Then you start thinking again, "I'm a genius! I can always come down later. Pricing a home at market value is for suckers. Pricing it undervalue to create a bidding war is for fools."
So you do your thing and 60 days later reduce your price from $1,000,000 that could have sold for $980,000 to from $1,100,000 to $1,000,000 then it needs to sell for less because it has been on the market for over 2 months, so it eventually sells for $890,000. You could have got $980,000 if you would have priced it right and worked with a competent agent and have the The paradox of choice, which screwed you over.
You think all of these ideas will improve your results, but every time you raise the price of your home, buyer demand decreases, and people who put their homes on the market too high generally sell them for 11% less.
Similarly, whenever you reduce or remove the commission, you reduce the buyer demand created by marketing and buyer's agents. See the commission as an investment to sell your home for more money, even after paying a commission. The good news is that you don't pay it until you get the desired results.
See psychology below.
The Paradox of Choice: Why More Is Less by Barry Schwartz explores how having too many options can lead to decision-making paralysis, dissatisfaction, and stress. Schwartz argues that while freedom of choice is generally positive, excessive choice can negatively impact well-being. Here are the main points:
1. The Problem of Excessive Choice
Then next week, you go out and, like, 1 out of 5 homes, and you are comparing this home to the homes you saw last week that sold.
Next week, it will be more of the same, and months later, you will compare the available home to what the market was three months ago and the home that sold.
What if you had just submitted an offer and picked the best available home?
Chances are you would be ahead of the person who didn't buy.
Most of us underestimate how many homes we've looked at. When you add in open houses, showings, and online tours, you are an expert on what will work for you. You have to trust it and make a decision to do it. There are a bunch of safeguards and inspections to cancel escrow and get your deposit refunded. The happiest clients I see buy in the first 7-10 homes we see.
This is the experience of over 1200 homes sold. George
For sellers, you delay the decision to list and which agent to work with because you have these concerns.
(you want a new home but don't want to pack up and move. You don't want to pay today's mortgage rates. Are you uncertain if the next home will be better than this one, and will it all happen in time so you're not homeless or pay two mortgages?)
You decide to talk to an agent about selling. The price is about what you thought. The agent's commission is in the range you expected. They have sold many homes, so you feel they could do a competent job.
But what if you found an agent that will price your home higher and charge less commission?
1% less is $10,000, and a $25,000 higher asking price is $35,000 more in your pocket. Will it really sell for more by picking a cheaper agent and increasing the asking price?
Your decision will delay your plans to sell, add stress, and increase the odds that your home will not sell. Right now, 31% of San Diego County homes don't sell.
So, you quickly eliminate any agent who tells you the truth about the asking price and the commission required to sell it for the highest price.
Now, you think I am a genius. What if I found another agent who would take another 1/2% less and price it $50,000 more? That's a total of $15,000 less commission paid and $50,000 more in price, so $65,000 more in your pocket.
Why stop there?
Why not sell it yourself and increase the asking price to $100,000 more than the value? That's another $120,000 in your pocket.
Here's the problem: You want to find someone who tells you what you want to hear instead of what it takes to achieve the results you want.
(You want to find an agent who believes in a sky-high price and does it cheap).
Then you start thinking again, "I'm a genius! I can always come down later. Pricing a home at market value is for suckers. Pricing it undervalue to create a bidding war is for fools."
So you do your thing and 60 days later reduce your price from $1,000,000 that could have sold for $980,000 to from $1,100,000 to $1,000,000 then it needs to sell for less because it has been on the market for over 2 months, so it eventually sells for $890,000. You could have got $980,000 if you would have priced it right and worked with a competent agent and have the The paradox of choice, which screwed you over.
You think all of these ideas will improve your results, but every time you raise the price of your home, buyer demand decreases, and people who put their homes on the market too high generally sell them for 11% less.
Similarly, whenever you reduce or remove the commission, you reduce the buyer demand created by marketing and buyer's agents. See the commission as an investment to sell your home for more money, even after paying a commission. The good news is that you don't pay it until you get the desired results.
See psychology below.
The Paradox of Choice: Why More Is Less by Barry Schwartz explores how having too many options can lead to decision-making paralysis, dissatisfaction, and stress. Schwartz argues that while freedom of choice is generally positive, excessive choice can negatively impact well-being. Here are the main points:
1. The Problem of Excessive Choice
- Freedom vs. Overload: More choices might seem empowering, but they often lead to anxiety and decision paralysis.
- Decision Fatigue: Sorting through numerous options is mentally exhausting and can result in poorer decisions or avoidance altogether.
- Maximizers: People who strive to make the "best" choice by exploring all options. They often experience regret, doubt, and less satisfaction.
- Satisficers: Those who settle for a "good enough" option are generally more content and less stressed.
- Minor variations between choices (e.g., 50 toothpaste brands) can make decisions more time-consuming and less rewarding.
- Choosing one option means forgoing others, and the awareness of missed opportunities can diminish satisfaction with the choice made.
- More options raise expectations, making it harder to be satisfied. People compare their choices to idealized expectations and feel disappointed even with good outcomes.
- More options increase the potential for regret, as individuals may second-guess their decisions or blame themselves for "choosing wrong."
- In a world of endless options, people often compare their choices to others, leading to envy and dissatisfaction.
- Limit Choices: Reduce the number of options you consider.
- Focus on Satisficing: Aim for a good enough option rather than the perfect one.
- Practice Gratitude: Appreciate what you have rather than dwelling on what you don’t.
- Embrace Constraints: Set boundaries or routines to simplify decisions.
- Schwartz critiques modern consumer culture for glorifying unlimited choice, suggesting it contributes to societal stress and unhappiness.
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