“Mere postings” have a lot of flaws. Here are just a few.
Today I’d like to take a minute to talk to you about mere postings. What’s a mere posting you might ask? A mirror posting is when a seller wants to sell their property on the MLS, the multiple listing service, but they don’t want to use an agent to do it. So they call these fly by night companies and for anywhere from $50 to $2000 this company will place their listing on the MLS and allow the seller to act as their own agents. So, you don’t have a listing agent, you’re acting as your own agent, your doing appointments yourself, you’re taking calls yourself, and eventually you’re supposed to negotiate your own deal. Mirror postings are popular. A lot of real estate agents are getting upset by them, but they have a lot of inherent flaws built into them and I’m going to take a moment to tell you what those flaws are.
The first flaw with mere postings is this: they’re overpriced. I don’t even need to see the listing to know it’s overpriced, I just know that it is. How do I know this? Because these people have chosen to use an agent to list their place because they didn’t want to pay them. They’re not going to take that savings and pass it on to the buyer. No, they’re going to list at the highest price they think they can get. Another reason why mere postings are usually overpriced is because they’ve looked at their comparables and they’ve chosen the most expensive comparable for their neighborhood. If ten houses have sold in the neighborhood of that week, I guarantee you that mere posting has chosen the most expensive listing and used it as their comparable, whether it’s comparable or not.
Now, another option that a seller has with a mere posting is to offer a commission to a buyer’s agent. A lot of mere postings, they put up $1. If you’re doing that, good luck. You’re not going to sell your place, period. But a lot of these mere postings choose to offer 2.5% to a buyer’s agent. They think, “Well, as long as I’m on the MLS buyers are going to want to see my place. I’ll offer 2.5% to a buyer’s agent to bring a buyer to me.” That sounds great in theory, but that is very very flawed. This is the second problem with mere postings. By offering to pay the buyer’s agent a commission and not paying your own agent a commission, all you’ve done is pay for your opponent’s representation. You know, I liken that to suing someone in court and paying for that person’s lawyer and then coming in without your own. The buyer’s agent’s job is to talk you down in price, to get their buyer the best and lowest price they can. Their loyalty is to the buyer, not to you, the seller. So, you’ve paid somebody else to come in and talk you down in price, but you haven’t hired your own representation. Where’s the sense in that?
Now, the third and possibly the biggest flaw with mere postings is something they call the “grain of salt” factor. When someone is trying to sell their own property and somebody else is looking to buy it, they have to take everything the seller says with a grain of salt. Why is that? Because they’re trying to sell their own property. If I was an agent and I have a buyer, I’m taking him around and I show him fifty properties, let’s say. I’ll tell him the good things, bad things, positives and negatives about each property and let him make his own decision. I don’t necessarily care which property he buys, as long as he buys a property. For as a seller selling their own property, it’s only interested in selling their own property and listening to the seller trying to pitch their own upgrades is sometimes comical.
Listen sellers, I’m going to give you a little tip here: laminate is not an upgrade. Nobody likes laminate. Laminate sucks. The only people who put in laminate are people that a) couldn’t afford to put in wood or b) are too cheap to put in wood. So if you have a buyer in there and you’re trying to sell them on how glorious your laminate is or what type of laminate or what color it is, I got to let you know that’s not an upgrade for most people. My buyers are looking how they’re going to rip that laminate the Hell out. Yes, it may look a little bit better than the shitty green carpet that you had under there, but it’s not as nice as wood and it’s not a selling feature. Just because it looks good to you doesn’t mean it looks good to the client and that is a perfect example of the “grain of salt” factor.
So, sellers, I hope I’ve given you a few points about mere postings that will help you make your decision as to whether you want to give it a try or list with a realtor and agents that are watching this I hope I’ve shown you that to me, mere postings are a gold mine. They’re nothing to worry about. Work with them and help your buyers score large.
My name’s Chris Borkowski. I’m a broker with Re/Max Hallmark and I’m here in the city of Toronto. If you have any questions are anything to say, by all means drop me a line. Thanks for watching.
If you have any questions, or you’re looking for great real estate in Toronto, Toronto real estate investment, or office space, call me at 416-486-5588 or email firstname.lastname@example.org.