“Pro Bono” Real Estate Agency? Not on Purpose Normally, when Realtor A refers a client to Realtor B, “B” pays “A” a referral fee. While Realtor B is going to be doing all the work, “A” has the client relationship — and can effectively decide which Realtor gets the gig. Depending on the situation and...Read More
Price vs. Value Undoubtedly, lots of home sellers who pose that question this Spring will answer “yes.” But if you then asked them if that’s how they chose their lawyer or CPA or family doctor . . . they’d look at you like you were crazy. Sophisticated consumers — of all professional services — know that...Read More
“UB?” How About “UO” (“Uhh, Ohh!”) What’s the counterpart to a FSBO (Realtors’ term for a “For Sale By Owner”)? I suppose that would be an unrepresented Buyer. But interestingly, there’s no analogous, universally recognized term (“UB,” anyone??) One possible reason: the way today’s housing market works, Sellers pay the Buyer’s agent. If the Buyer elects not to...Read More
Commission Saved: $8,000 Hit to Sales Price: $20,000 In FSBO Mistake #4, I chronicled the case of the hapless For Sale By Owner (“FSBO”) in Golden Valley who wasted their first — and best — month of market exposure incorrectly classified as a “Foreclosure” on MLS. Hit to their bottom line? I’d estimate 3% to 5%....Read More
Webster’s for Realtors OK, so they may sound like snowboarding manuevers. To Realtors, however, “commission splits” and “cross-over points” are two of the most important terms in the industry. So, what are they? A Realtor’s commission split is how much of each paycheck they share with their broker. Depending on the Broker and the individual Realtor’s arrangement, Realtors can...Read More
Test your knowledge of today’s real estate market, and answer the following question: Does dangling a fatter commission to the Buyer’s agent — what Realtors call the “listing payout” — result in a faster sale, for more money? A. No. B. Yes. C. Sometimes D. It depends on how much. Answer: “D.” (credit also given for...Read More
