Category Archives: Commissions

For Sale by Owner (FSBO) in Rochester NY

Rochester NY’s FLAT FEE, FSBO Leader

 

You have heard about “Location, Location, Location” in real estate but when you are selling your homes by owner you have to think about INFRASTRUCTURE, INFRASTRUCTURE, INFRASTRUCTURE!  Why? Because if you hitch your wagon to the wrong star you run the risk of leaving lots of money on the table.  

 

List2Move (formerly called FlatFeeRochester.com) was started right here in Rochester NY almost 7 years ago with the idea that if you give the sellers the RIGHT tools (the same ones the agents and brokers use) and a little coaching along the way, that they would be able to successfully sell their own real estate.  Well Rochester, it is working really well!  We can tell you with confidence that by listing with List2Move.com you have a 42% better chance of not paying any co-brokers commission at all. (And much better service and better signs than anyone in or out of town!)  We have saved our homeowners (our neighbors) over a $1,000,000 (million)  in commissions!

 

That being said, it is also true if you go with the cheapest service out there you are going to get some real cheesy looking signs, and little if any infrastructure which makes a big deal if you are really trying to save the most money.  So if you want to save the most money, have the least amount of problems and sell quick there is still only one real contender, the market leader….List2Move.com

 

 

 


Top 10 Reasons to FSBO with List2Move.com

10. Realtors can’t solicit you any more!  It would be unethical according to the National Association of Realtors Code of Ethics!

9.  Automatic Syndication to hundreds of web sites including Realtor.com

8.  Automatic marketing to all Realtors in your area

7.  Name your own buyers agency commission (You don’t have to give it all away!)

6.  Control of your deal

5.  Chance to eliminate the buyers agent’s commission (100% of Sellers make the commission offer and 42% still pay nothing)

4.  Automatic Marketing all Realtor’s buyers registered in the MLS computer

3.  No long term listing contracts

2.  Free consultation with someone who wants you to succeed!

1.  It’s all done from the comfort of your own computer!

Change commissions after accepted offer?

 

One of the requirements for gaining access to MLS as a For Sale by Owner or as any full service real estate client is an offer of commission.  It can be as low as one dollar (as with List2Move.com) but you have to make a blanket offer of commission and it has to be documented in the listing agreement (Contract)!  This “offer” basically says, “if you (a Realtor) bring me an offer that I accept, I will pay you (that Realtor) “x” amount of dollars or percent!!!!  It is contractual, it is specified in the MLS and only Realtors who have access to the MLS database can see it!!!!!   Again, it is contractual because we are dealing with money….which should make cents, right?

 

Negotiation of the commission can only happen before the contract is signed!

 

Real life story….

I got a call this morning from an agent who has an accepted offer with a seller.  She tells me that the seller who is offering 1.5% says they are going to pay less because the buyer came in before they put the home on the MLS without a Realtor, however, the contract was drawn up by a Realtor with the Realtor’s name on it naming the Realtor’s company as the procuring cause of the sale.

I looked up the offer of compensation on our listing agreement, and it read 1.5%.   Seller didn’t renegotiate with Realtor before accepting the offer and therefore, most likely, the Realtor will be paid the full 1.5% commission.

For Sale By Owner’s Flat Fee MLS, Rochester, NY

Going For Sale By Owner in Rochester NY takes some thought.  The rewards are great if positioned with a company that doesn’t compete with you for buyers.  Some companies will throw you on the MLS and then when the buyer calls the broker the broker “represents” the buyer and collects the commissions.

 

Not at List2Move.com!

 

List2Move.com has the the infrastructure that sends the buyers direct to the seller everytime.  Effectively removing the broker from the equation and puts more money in the sellers pocket.    For Sale By Owner’s in Rochester NY are learning that not all flat fee providers are the same!

Is your flat fee provider working against you?

For sale by owners, beware!

 

If you are not working with a provider that is truly on your side you will most likely pay the price.


$1000′s in commissions


What do I mean?  You must remember that when you go on the MLS, your not only tapping the number one tool of the Realtors but you are also getting syndicated nationwide in most cases, which is all good.  However, one key ingredient is missing that could be costing you thousands of dollars in commissions.

The buyer leads!

 

Where are they going?  They are going to the broker, not you (the for sale by owner) !!!!

 

Surprised?  Don’t be.

 

The MLS and the syndicated sites are set up for brokers,

 

not for sale by owners!

 

Brokers pay for this syndication out of their dues paid annually to their MLS and the small fee you pay to list your home or property on the MLS is just that.  A small fee for exposure or advertising!  It does not guarantee you the buyer leads!  However,

 

Getting around this is easy


Look at the brokers listings on the brokers website.  Is it FSBO (For Sale by Owner) Friendly or not?  You should see a way to clearly get in touch with the owner.  The broker should also be promoting this on the public MLS website.

 

List2Move sends you 100% of the buyer leads

 

Log on and list!

 

 

Hustling Rebates In Real Estate

A real estate commission rebate is not considered taxable income!

What does that mean?  Well, it means you would get tax free money back soon after closing on your next home or property!!!!  Sounds good but not many Realtors are offering it.  Yet.  However, once you know about real estate rebates, you would be crazy not to seek out the largest one you could find! It really is that simple.

Let’s face it you are going to do the majority of the work finding and purchasing your new home and that is a fact!  So why not treat this like a business deal which it is and shop for the best rebate you can get.  Hey, everyone knows a real estate agent or ten, but this is BUSINESS, don’t make the costly mistake and make this personal.  Ask them all what kind of rebate you can expect from them when you use their services.  Remember it is your money that you are bringing to the table so get some back!

List2Move.com in Rochester and Syracuse, NY have been offering hefty rebates over the last couple years but so few people actually get it!  This can add up to literally thousands of dollars, that you were bringing to the closing table either way!!!!

Check your state to see if commission rebates are legal.  New York State allows real estate commission rebates!

Rebate Check cut!

List2Move.com (Fairport, NY) today cut a $5206.88 check as a rebate to buyers who recently closed on their new home built by Morrell Builders in Victor, NY.

These buyers were also sellers with List2Move.com and because there was no agent on either side of the selling transaction they saved over $10,000 in selling commissions as well.

Not bad considering we are still in a recession!  Smart?  You bet.  List2Move.com offers flat fee MLS for sellers and offers commission rebates for buyers.

Home Buyer’s can save money by using rebates

Buyer’s brokers are beginning to compete on price by refunding a portion of their commission to the home buyers.  This was once illegal in New York State but that all changed in March of 2007.  Believe it or not it is still illegal in 11 states. 

Roxwell Properties, owner of www.list2move.com has begun to offer on average 50% of the commission back to buyers. 

Commissions do not sell Real Estate

My attitude towards commissions has always been the same;

Commissions do not sell real estate, period.

We had a client recently (January 2008) who wanted to experiment. He made an offer of 2% commission , and he threw in an additional $14,000 on top as a bonus, adding up to a total of 6% to the selling agent which is far above the “traditional” 3%. We emailed out the promotional piece to every single agent and broker locally (3000+)

Many people think that agents and brokers have some magic powers to sell property “quicker and for more money” (at least that is what we see in the paper) but in reality property is sold “quicker” if it is priced for the market. If it is over priced it is going to sit. As for the “more” … forget it, you are only going to get what the market will bear.

My advise, is to do what the professionals do; listen to the market, price it accordingly, and market directly to the buyers.