Archive for the 'Consulting' Category
How Are Realtors Paid? July 26th, 2007
I mentioned in a previous post about how loan professionals are paid that I would write about how Realtors are paid.
Of course, the seller who lists his house with a Realtor knows how it is done because he or she signs the contract to pay a certain amount to the Realtor. The listing contract specifies that when the house is sold, the real estate broker will be paid a certain percentage of the sale.
The agreement is between the seller and the listing real estate broker. The buyer is not a part of this agreement at all. It is generally left to the listing licensee to decide how much to pay a cooperating real estate broker for finding a buyer. This amount is then posted on the listings that is seen by the Realtor.
When the buyer’s Realtor looks at the listing they can tell exactly the percentage they will receive if they sell a house. They may be paid 2% on the sale of one house and 3% on the sale of an identical house down the street. Some people feel that a licensee will show the house with the higher commission and ignore the other. In my opinion that may be true but it is not common. Most buyers representatives look out for the benefit of their buyer regardless of the commission amount.
It is expected among many Realtors that the listing broker will share the total commission equally with the buyer’s licensee. They feel that they should get an equal share of the commission because the transaction would not happen without a willing buyer. However, it is not necessarily the case that the commission is shared equally.
While an equal share of the commission may be an expectation, that is not necessarily what is done. Nor is true that the commission should be shared equally.
Some local listing licensees will give the buyer’s realtor less than 1/2 the commission, and some will give more than 1/2 the commission to help attract a buyer. It would be in the interest of the seller to know how the commission is being shared. If the seller knows and is in agreement with the method that their licensee is using than everything is cool.
Buyers should also know how, and how much, their representative is being offered to sell a particular house. In todays slower market we are seeing more and more ‘BONUSES”, offered to buyer’s representatives if a particular house is sold. I wonder what a buyer would think if their Realtor showed them a house in which he was being paid 3 1/2% commission but did not show them a similar house that only had a 2 1/2 percent commission.
Let’s have a little transparency here…it will help all of us in the long run.
If you want to work with a Realtor who gives you many options on how to pay, and how much to pay…check out my consulting articles. And if you want specific numbers where I have a sliding scale from $150 all the way to a 7% commission, give me a call. My cell is 907 232–7900
Do You Want Someone To Sell You? or Consult With You? July 13th, 2007
For years I have tried to think of ways to give people more options on how to accomplish their real estate goals. I have experimented with different approaches over this time but only recently discovered ACRE.
ACRE, (Accredited Consultant in Real Estate), is a new organization of Realtors whose goal is to provide a more transparent relationship between the consumer and Realtor. Take a look at the Consulting Times so that you can understand more about this new real estate model.
It was started by a group of Realtors that included Mollie Wasserman who wrote the book, Ripping the Roof Off Real Estate.
It seemed to fit the way I want to work and so I signed up and now am the only Accredited Consultant in Real Estate in Alaska.
My brother Jay and I have been discussing our fee schedules and now can give options to our clients. There are many different scenarios where you might need a real estate consultant rather than a full blown commissioned Realtor.
For example, perhaps you want to market your home yourself but just need some coaching along the way?we can help.
Or maybe you and a co-worker have already agreed on the basic terms of a sale but would like some guidance to put together a good contract?we can help.
Perhaps you are interested in a home that is for sale buy owner and would like some assurance that the asking price is reasonable?we can help.
If you want your house on the MLS and help in negotiation and management of a transaction, but can handle the rest yourself?we can help.
In fact, we can provide a full blown marketing package with price research, MLS, representation, and transaction management on a consulting basis that will still cost much less than a normal commission structure.
Jay and I have over over 26 years of combined real estate experience in the Matanuska Valley. We know how it works and do this full time.
You will NOT hear any canned sales lines from us. We don?t spend our time practicing sales scripts and role playing them on each other so that we can manipulate you into doing what we want you to do. We do not pressure or manipulate you to do anything.
We feel that our role is to LISTEN to you, and then to try to help you meet the need that you have.
In other words?we ?CONSULT WITH YOU, NOT SELL YOU?.
Give us a call at 907 373?0999 or drop us an email in you are interested in hearing more.
Marty Van Diest, Tele 907.232.7900 / marty[at]valleymarket[dot]com
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