JUST SOLD! Brick Syracuse Rambler
Published On: August 21, 2020 Posted by: Jeremy Peterson
I just closed on the sale of this nicely finished brick rambler located in Syracuse, Utah. The home is located in a subdivision constructed in the mid 1990’s. The home boasts 5 bedrooms, 3 baths including a mother-in-law apartment in the walk-out basement. The home was originally listed for $455,000 on April 21st during the lockdown.
The price was dropped to $445,000 in mid-June. In mid-July my clients noticed this home and we viewed the property. The home checked off all the boxes for them and we submitted an offer of $455,000 and asked them to pay $9,500 in closing costs. They accepted.
The transaction was made awkward due to the home being listed with a notorious low-fee brokerage based out of Utah County. Communications with the listing agent were terse. We mostly engaged in grunts and snorts via email. The listing agent’s voicemail specifically instructed callers not to leave a voicemail because he wouldn’t ever check it. Then, the sellers called me directly to ask questions about our request for repairs after inspections. That was a big no-no.
Other than the lack of grace and diplomatic ritual that embodies every other transaction I have had the pleasure to participate in, this transaction still concluded successfully. The appraisal came in at value and we closed on time.
NOTE: One of the puzzlers regarding this home was that it had sat on the market for almost three months before our offer was accepted. The home was priced similar to other similar homes in the area. We were scratching our heads as to why it sat for so long. However, a review of their agent compensation answered that question for us. Since this home was listed with the aforementioned notorious low-fee brokerage, the agent compensation offered was significantly lower than average market compensation offered by other brokerages. When buyer’s sign a broker agreement, the compensation the brokerage will receive from the buyers is determined in that agreement. Typically that amount is on par with what cooperating listing brokerages in the market will offer to pay for the buyer. However, if there is a difference, specifically a shortage, buyers can be liable to make up the difference. So, when the notorious low-fee brokerage set the commissions at a fraction of average market compensation, most agents likely informed their buyers that they would be forking a lot of extra money out their pocket, money that should go toward a down payment and closing costs, to make up for the gap. The take away here is that when sellers and their notorious low-fee brokerage accomplices set agent compensation below average market compensation, they can expect their home to sit on the market longer in direct proportion to the gap that buyers will have to pay their agents. People get what they pay for.