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  1. #1
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    Default Best Tips For Home Buyers

    Some tips for home buyers:
    Know your budget and pre-qualify with a lender.
    Consider what is most important to you and your family.
    Do your homework. Surf the web and come in educated.

    Consider quick-delivery homes and ask about incentives.
    Schedule appointments with your sales representative.

  2. #2
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    Default Re: Best Tips For Home Buyers

    Do you have any tips for home sellers? We already know the house we are buying but now have to worry about selling our home in a unsure market. I have a family member who is wanting to list the house for us, (he just got his real estate license but his parents have been in the business for years). What would be a good commission rate to propose to him? Since it will be his first listed home I was thinking of suggesting a 3% commission. Would this be insulting?

  3. #3
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    Default Re: Best Tips For Home Buyers

    Quote Originally Posted by AdelleC View Post
    Do you have any tips for home sellers? We already know the house we are buying but now have to worry about selling our home in a unsure market. I have a family member who is wanting to list the house for us, (he just got his real estate license but his parents have been in the business for years). What would be a good commission rate to propose to him? Since it will be his first listed home I was thinking of suggesting a 3% commission. Would this be insulting?

    I was a licensed Real Estate Agent for years and what I will tell you is that it's not up to you as the client to Choose the Agents Commission. It's up to the listing broker. I routinely turned down clients that thought it was their job to do my job. Let me explain why- if you try to turn your agent into a discount broker you are shooting Yourself in the foot.

    First, when a property is listed, the listing agent receives a commission and the selling agent receives a commission. If it's listed for $100,000 at 7%- (in most states, this can vary) this means the commission would be $7,000.

    It would be split this way:
    1/2 to the Listing Agents Office $3,500
    1/2 of it to the Selling Agents office $3,500.

    Then it's split again, your agent isn't going to get $3,500. (Unless they're the designated broker).

    They have to split it based on what their office requires. Our office required a 50/50 split. which means that after listing a Clients house- for $100,000. The commission I would receive is $1,750.

    Now, on top of that, an Agent has to PAY the broker where they hang their license. So for me, because I split 50/50 I only have to pay $1,000 per MONTH to Hang my license with that company. Plus phone, etc. This doesn't begin to cover the cost of Advertising the clients property.

    The same with the Selling Broker (the agent that brings the actual Buyer of the property).

    Now here's where it gets worse, In some states, the selling agency doesn't even get a 50/50 split- for instance in SC, they frequently get a 60/40 split- where the selling agency (the buyers side) only gets 40%. Which means the selling agent (the person who finds the buyer for your house would only make $1,400.)

    I'm here to tell you, when you're showing properties, you spend literally HOURS of your time and gas money driving people around. It takes an average of 40 hours with a couple before they ever even put in an offer. So the more you try to turn your broker into a "Discount" agent, the less likely you are to sell your house in a timely fashion.

    If you want to sell your house fast, offer an 8% commission - tell the Agent you want it in the Listing agreement that the commission will be split 50/50% when it's listed in the MLS and then just slightly increase the price of your house slightly to help offset it.

    You will have 3x's more Agents bringing Potential Buyers to your Home because it will be that much more inviting to them.

    To put it into perspective- if you were an agent, and you had Buyers in your Car and there were 3 houses that they wanted to see today, all the same price range, within a couple thousand dollars and the commission split was 1.5% (from your proposed 3%), 3%, or 3.5% (from 7%)- which house would you work harder to sell??? I know which one I'd sell first every time.


    As for actual Selling tips:

    • Curbside appeal- stand at the curb and look at your house- what's wrong with? Chipped paint, weeds, overgrown lawn, etc? Fix it.
    • Prior to the showing, bake bread. Works everytime. I used to purchase those french bread loaves from pillsbury for $1.97, cut it into 1/3rds and bake it for 10 minutes prior to a showing. The whole house smells amazing and It makes a house "smell" like home.
    • Make sure you don't have any pets IN the house during showings.
    • Make sure you don't have kids in there either.
    • Don't stick around for showings. Potential buyers DON"T want your input. It turns them off, instantly and instead of being able to picture themselves in your house- they start picturing you in your house. Not good.



    Good luck in selling your home.
    ~Liss~
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  4. #4
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    Default Re: Best Tips For Home Buyers

    Quote Originally Posted by Liss View Post
    First, when a property is listed, the listing agent receives a commission and the selling agent receives a commission. If it's listed for $100,000 at 7%- (in most states, this can vary) this means the commission would be $7,000.

    It would be split this way:
    1/2 to the Listing Agents Office $3,500
    1/2 of it to the Selling Agents office ,500.


    Then it's split again, your agent isn't going to get $3,500. (Unless they're the designated broker).
    Wow I didn't know that, I thought they got to keep it all! No wonder our broker told us to pound sand when we wanted to list the house at 4%! We listed with another agent who would and she never did sell the house. When we went to relist it they told us that it was a "stale listing" and we were better off leaving it off the market for 6 months and then try again.

 

 

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