I was approached today by a friend with some questions. It turns out that not everybody wants to read an impassioned discussion regarding disintermediation or the technological and social ramifications of Web 2.0. She just wanted to know how what Area Pro Realty is doing for her today, in a nutshell.
Listing side commission is 2.0% based on final selling price on “traditional sales” limited only by a $3500.00 minimum. REO and Short Sale commissions are set by the Lenders who approve the sales and are split 50/50 with the Buyers (Selling) agent.
Typically this is 1.0% lower than “the going rate” for the listing side. On a $700,000 home, this saves the seller $7000.00. He can actually lower the price of his home to make it more competitive in the market and net the same or more at closing. Many (most) agents will negotiate commissions when pressed by the client to do so, but if they will agree to lower the commission for some clients (because they are “better” negotiators) is it simply not the “right thing to do” for all?
We offer Buyer Commission Rebates of 1% of the Buyer’s Agent commission, paid to the Buyer at close, when represented by Marston Myers or other cooperating Area Pro Realty – People’s Choice agent, on the purchase of ANY BROKERS LISTING. This is only limited by the requirements or limitations of the Buyer’s lender, or the FHA or other Gov Housing lending agency. We have paid out tens of thousands of dollars of Buyer Commission Rebates. After all, the BUYER actually pays the commission in the end because the commission is built into the sales price of the home. Again, REO and Short Sale Commissions are set by the Lenders who approve the sale and are split 50/50 with the Listing Side. However, Buyers of these properties may still typically expect a .5% rebate of the final sales price at close of escrow or as limited by their own lending situation.
On a $700,000 home this rebate will put $7000.00 in the hands of the Buyer to help pay closing costs, buy-down his mortgage rate saving thousands per year in payments or just a nice $7000.00 check at close. Per our CPA, this is a non-taxable event for the Buyer and will merely lower the basis of the home $7000.00 at resale.
Why do this? Because it is fair to all concerned, sustainable, client oriented and (most importantly to me) removes the adversarial tension that exists between Broker and Client. Do some Realtors see multiple clients at a social event and pray that those clients never compare notes regarding commission? Yea, I’m pretty sure they do…
Real Estate commissions are all negotiable by law. Most Realtors want you to believe that in a tough market seller’s should be paying at least 6% total because your home will be on the market longer and it will be harder for them to sell. What incentive are they offering BUYERS to purchase YOUR home? Marston Myers is offering BUYERS half of what the Seller is offering other AGENTS to sell their home.
Providing FULL SERVICE is mission critical. Without providing a robust full range of traditional and Web 2.0 services, lower commission means nothing!
I am simply “negotiating” upfront and publically for the benefit of MY clients and OUR community.
One last point, Area Pro Realty – People’s Choice does NOT “Discount” commissions! We are “Setting” fair commissions for our clients. If you can find better representation, better services or a fairer deal with any other Broker, than by all means take it!
Everything will be plainly stated in writing when we begin to work together. Please feel free to call me with any questions!
Marston Myers
Owner/Broker
925-262-8128
Area Pro Realty – People’s Choice
