BREAKING NEWS

HOME BUYERS

We love educated consumers! All too often the big box real estate companies and banks take consumers for granted and persuade them to overpay for services by using fear tactics, such as: "if you don't use our mortgage company, you may not close on time".

Read our Mortgage and Real Estate Articles for the truth.

MORTGAGE RATES

Rates down and signaling a drop

Keith L. Eliou, Esq., CFP, RIA, MBA

- Financial & Retirement Planning

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SELLERS: WHY OPT FOR THE MOST EXPENSIVE WAY TO SELL RIGHT OUT OF THE GATE?

“I HAVE A GOOD FRIEND WHO IS A REALTOR AND SO I’M GOING TO USE THEM.”

This is among the most common reasons we are given for why a seller picks a particular agent. Consider this, if the person is such a good friend, then what discount are you getting from the tens of thousands of dollars that you are about to spend? Are they charging you the same rate as non-friends? Our advice, if they are good friends, pick a less expensive option and get all of the services that you need, and then you can take the thousands and thousands you save and pay for part of one of their kid’s weddings (obviously we are making a point here).

Before you commit to paying tens of thousands of dollars to sell your home with the traditional commission-based model, consider options. This isn’t brain surgery. This isn’t rocket science. Look for the low hanging fruit. You can always stop and then hire an agent who charges the full traditional commission.

By investing a few hours in research (or paying for a one hour consultation with us), you can uncover lots of options that will provide you will the services that you want and save thousands in the process. Probably having a better overall experience by engaging experts in the areas involved rather than working through a generalist, real estate agent, of unknown in-depth qualifications.

Let us lay it out in a quick example:

You agree to pay a 5% commission on a $500,000 home or $25,000 dollars.

The agent lists the house on Sunday and it sells by Saturday, at or close to the full asking price (maybe even by the same agent or an agent in the same company, which is a whole other issue).

Versus

  1. For a week, while you are getting ready to sell, put out a $20 dollar for sale buy owner sign;
  2. A buyer makes an offer- it is their obligation to make the offer, you don’t have to pay anything until you need help
  3. You hire a real estate attorney for $1000-$2000 dollars to review the agreement and walk you through the process

YOU SAVED $23,000-$24,0000 DOLLARS!

Versus

4. One step further, you could next advertise your home in the local MULTIPLE LISTING SERVICE, for a FLAT FEE of $300-$400 dollars. Yep, it’s the same MLS that the agent would use

SO, YOU SAVED $22,600-$23,000!

THERE IS ROOM FOR YOU TO PAY FOR MORE SERVICES AND STILL SAVE TONS.