2 Weston Hill sells direct

2 Weston Hill Rd

 

This came on $2.295 in October, which I thought was a pretty good price, but it sold direct (that means to a neighbor or friend, no commission, usually, and don’t we hate when that happens?) for $1.950. Good deal. 

On the other hand, 25 Lockwood, a new spec house, was listed today for $3.2 million. Maybe – I’m not sure, but it appears that there’s a FARport here, instead of a garage – for that price …. We’ll see.

17 Comments

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17 responses to “2 Weston Hill sells direct

  1. Jane

    Now will you answer my question about direct sales? I know you guys hate it, but sometimes it might just work out for both parties. Advice?

    • Well sure we hate it, because it gives the direct buyer 5% advantage over anything our clients bid. But it can work – the usual pattern is, a neighbor says, “if you ever want to sell you house, please let me know” and then, when they discover your price, they disappear. But well-priced to begin with, the neighbor can get a better deal and you come out slightly ahead. We still hate that, though.

  2. SlappedAss

    There is no information that indicates this house was sold to a neighbor or relative. If the owner paid a 6% commission, he would have shelled out $137,000 in commissions. If you divide that by the number of hours the RE people worked on this, it is doubtful it is a warranted amount. If one person worked full time for an entire year on marketing this house, it is still a ridiculous amount of commission. The owner dropped his agent, and lowered the price, which resulted in a sale.
    This is the future of real estate. Right now price sells home, its really that simple. The lower you can make your selling price the more likely you are to sell your home, at least that is what I hear many Realtors say.

  3. “FARport.” heh heh heh.

  4. Anonymous

    How about the recent private sale on Keofferam that surprised a lot of neighbors — very high price and didn’t even include the side lot!

  5. CTBought

    Price discovery, historical pricing, comps and general market intelligence is nearing commodity status. Anyone with internet access can get this for free. Brokerage commissions will continue to fall because of this. The broker’s role will not go away, rather the amount of them working will, as will the amount of work one must do to make less money. The sooner you accept that and change with the game, the sooner you will enjoy greater success.

    • uh huh. I’ll go back to lawyering before I work minimum wage showing houses. Not necessarily disagreeing with your prediction, but if it comes to pass, there won’t be any people of talent working this gig.

  6. Retired IB'er

    “there won’t be any people of talent working this gig”

    That’s such an easy lay-up, I’ll let it pass 🙂

  7. J

    Until buyer’s start paying commissions they will still use brokers to find homes.

  8. CTBought

    Actually the most talented people will be left in the business. This is market forces at work, economics if you would. Those who can provide the the highest quality and quantity of information and service will be the ones who gather the highes volume of transactions as commission rates contract. The weaker, more lazy players won’t have the volumes to make it worth it on a net basis. The fat will be cut as I like to say. In a rising market there is little reason for anyone to cut commissions, or little reason for buyers or sellers to demand it. However now it is of the highest priority. I’ll reiterate the brokerage role will not go away, however it will change. I think that change will be working harder and longer for less money per transaction.

  9. SlappedAss

    Its nice to see that I am in the majority here. The days of the 6% fixed real estate commission and mandatory MLS membership are waining. I love the argument all the real estate people make: “Private sales=over pay for home” or “You are paying for realtors ability to negotiate”. Please. There are very few, if any, arguments to pay ridiculous commissions to sell your home. No one can sell my home like I can-I know everything about my home-work that was done, monthly carrying costs, school system, neighbors, maintenance records, etc realtor knows none of this, but can sell my home? In sales product knowledge is one of the most important factors for success. Example: looked at a $1.5M Westport Spec Disaster last week-started st $2.9M a few years back. Builder put it up 4 years ago, still “brand new” except now its owned by a bank. Listing realtor is showing me the house, but can’t tell me where the property line is, what the taxes are, which bank owns it, or the difference between a short sale and a foreclosure, and wasn’t even sure if it was a SS or Foreclosure. Told me a foreclosure will take 6 months to close. Even though the last two I bought took 7 weeks. Because I had done my homework, I had all the answers the realtor didn’t. Who wants to, or should pay huge money for this incompetence? I don’t. All that information is readily available to me at NO CHARGE. Realtors think they are providing a valuable service, some of them do. But most do not. There are a lot real estate people struggling. Survival of the fittest, business world style. The easy money for realtors is a thing of the past. No one wants to pay more than they have to for anything these days.

  10. foobar

    kudos slappedass. you are talking my book.

  11. Slapped, you are right on target. Like I have said, most realtors cannot sell a home to save their lives. Some brokers tried to sell value added services…Raveis tried Home-Link, it went bankrupt, and crushed his national reputation. It was all an attempt to stem the flow to the Internet, and the free information. It does not work, and only the best realtors will, and should survive.

  12. Cos Cobber

    Hey CF, back on 1/26/10 I said ‘at least $2MM’ while you thought sub $1.6MM (am I right, is that what you thought?). While I was wrong to state ‘at least’ it appears I was closer than you..no? 🙂

    http://christopherfountain.com/2010/01/26/new-market-reality/#comments

    • I think I said (I’ll check) that the house next door, while not as nice, was going for $1.6, so I didn’t see this one going for $700,000 more. But yeah, $1.950 is closer to your bet than mine. maybe.