Motivated seller. You’ll like the spacious interior of this 3 bedroom, 2 bath home in Schley County, Ga. From its great room with vaulted ceiling to its master bedroom and bathroom to its kitchen and laundry room, there’s much to like, not to mention the price of $78500, which is below the county tax assessor’s appraisal.
How many Realtors do you pay when you pay a real estate sales commission?
Most times two, sometimes three and many times four. How is that?
In most sales the seller pays a commission to the listing broker who splits it with the listing agent.
If the property was listed and sold by the broker himself, he can keep the whole commission. When an agent listed the property, the commission is split between broker and agent according to the broker’s policy on commissions.
When the property was listed by an agent of the broker and is sold by another agent of that broker, the commission is split three ways among the broker and his two agents.
When the property was listed by one company but the buyer comes through a different company, the commission is split between the two companies, and split again between the broker and agent in each company.
The typical commission on residential property is 6%. If two companies are involved, the commission is split, usually 50-50, with each company receiving 3% of the selling price.
What if you listed your property with a broker, e.g., Michael Dixon, at a 6% commission, and he sells the property himself? In that case he would not have to split the commission with anyone. Would he keep the whole 6% commission for himself? No.
He would take only half of the commission and let you keep the other half. Michael can afford to work for 3% of the selling price because he has very low operating costs. You would still get all of the services you usually would pay 6% for.
Q: Can’t I sell my own house better than a real estate agent?
A: That’s certainly possible. It depends on your answers to some questions:
— Will you always be available to show the house when a potential buyer wants to see it?
— Will you market the property effectively including an easy-to-find presence on the Internet?
— Can you detach yourself from the house emotionally and handle criticism and objections like a pro?
— Are you a good negotiator who remains calm under pressure?
— Can you create a binding legal agreement with a buyer that protects you against a default?
— Can you follow up with a buyer to make sure he or she is obtaining financing and meeting other obligations?
If you’re not fully confident in your ability to meet these requirements, you’d be smart to turn the marketing of your property over to a professional. Untold numbers of sellers have started with a For Sale by Owner sign in the yard only to turn to a real estate agent after months of frustration.
A common mistake sellers make is overpricing their property. This is easy to do because of the seller’s emotional involvement and a desire to recoup all of the costs of improvements made over the years. Unfortunately, this approach flies in the face of reality in too many cases. The market value of your property is not necessarily what you think it is “worth.” And some improvements don’t translate into a higher selling price.
You and your buyer must agree on a value in order to get the property sold. Clinging to a subjective concept like “worth” may prevent you and your buyer from ever reaching an agreement. A real estate agent can help you arrive at a value for your property based on objective criteria, and keep you from having unrealistic expectations and the disappointment they produce.
One real estate company, mine, will actually advertise For Sale by Owner property free of charge or obligation. Why would I do this? For one thing, it costs me nothing except a little time to take pictures and put the property on one of my Internet websites. Since the property is not listed with me, I can’t lose something I don’t have. But, who knows, some day you may decide to list the property with a REALTOR, and you may choose me. At least I’ll have a shot at it.
What’s more, while your property is displayed on my website I may get calls on it. You may agree to let me show the property, and prepare the written agreement if there’s an offer and you accept it. In that case you can compensate me with a partial commission based on my level of involvement. It’s a win-win-win situation for you, the buyer and for me.
If you’d like to talk with me about your property, and consider your options, call me at 229-924-3089. Would you like to get an idea of the value of your property in today’s real estate market? Would you like to know what properties comparable to yours are selling for? Call or email me at: email@example.com.
Enjoy the serenity of your place on the Flint River in Dooly County, Ga. Not a cabin but a beautiful three-bedroom, two full bath home. Living room has a gas logs fireplace. Kitchen has LG stainless steel appliances and granite counter top and breakfast bar. Master bedroom boasts a tray ceiling and ceiling fan. Baseboard and ceiling moldings throughout. Screened back deck overlooks the boat house and Flint River. Electric boat lift, large deck and decorated sitting area in the boat house make the perfect place to relax, party or launch your boat for a fishing or sightseeing trip on the river. The vinyl sided house sits over a four-foot crawl space. A Trane heat pump provides heating and cooling. An in-ground sprinkler system keeps the yard looking fresh and pretty. The lot is 0.51 acre on a dead-end street with practically no traffic. One look and you’ll fall in love with this river property. Price pending appraisal. Contact Michael Dixon, broker, 229-924-3089.
This Is Real Estate Today. That’s my business slogan. What does it mean?
It begins with you. If you really and truly want to sell your house and it is 1) priced right and 2) move-in ready, I would love to help you find a buyer.
You may get faster results by listing the property, but I (and only I locally) advertise unlisted property for sale on my websites. Your listed property will go in the AmericusArea MLS and Realtor.com. It will be picked up by Zillow and numerous other real estate search sites on the Internet. Anyone, anywhere, looking for your type of property in this part of Georgia will see your property.
An interested buyer may contact me directly or any licensed real estate agent. The agent will then contact me. We’ll make an appointment to show your property, and we’ll encourage the buyer to buy it. Why? Because it is 1) priced right and 2) move-in ready.
Let’s take this a step further. Let’s say the buyer comes directly through me, and there’s no commission split with another agent. In that case the commission will be 4% instead of the typical 6%. I don’t keep the whole commission if I don’t have to split it.
However, if there is another agent involved, and a commission split, we’ll do a 60-40 split. I’ll keep 40% of the commission and give the other agent 60%. That may be an incentive for agents to show your property. This is exclusive with Michael Dixon Realty.
Please remember: You don’t pay me a penny until you decide to sell your real estate to a buyer. Only when you get paid do I get paid.
If you love country quiet, woods, fields and streams, you may have found your next home. This 295-acre (+/-) tract lies in Schley County, Ga., about 95 miles south of Atlanta via US 19. You’ll find a vintage country store and an old farm house that has been updated. The land features rolling fields and woods, springs and four separate streams. Could be a great horse farm. Native forest, old fields and maturing planted pines offer new scenes around every curve. The property is traversed by around 5 miles of roads and trails. A bridge for light vehicles and a foot bridge cross a creek. The property offers a choice of home sites and/or cabin sites. The farm house, dating back to the early 1900s, has a tin roof and three fireplaces. The property is approximately 40 miles east of Columbus, Ga., and 50 miles southwest of Macon. It is 6.5 miles to Ellaville, and another 15 miles to Americus, Ga., via US 19. It is offered at $3,350 an acre. For more information or a personal tour, call Michael Dixon at 229-924-3089. This property is not listed with an agent. No compensation is offered or implied.
All of my listings have been sold. One or two new listings would be nice. Why would you list with me rather than one of the bigger offices?
Consider: Your property will get as much exposure to prospective buyers with me as with other brokers. It will be listed in our local area Multiple Listing Service. It will be picked up by several national real estate search sites like Realtor.com and Zillow. It will be found on numerous other search sites as well.
Here’s the big difference. I work alone with no office staff and no agents. I don’t have routine office expenses, nor do I have to split my commissions with agents. How does that help you?
With my low operating costs I don’t need to keep the entire commission in some cases. Let’s say we’re in a listing agreement that will pay a 6% commission. If the buyer comes through me directly, not through another company, I’ll gladly take a 4% commission.
You save 2% on your commission obligation, but I make 1% more than I would make if the buyer came through a second company and the commission was split 50-50.
No other real estate broker makes you this offer because no other broker can afford to work for 4%. I gladly do so. You’ll get the same full service as you would for a 6% commission payment.
If you’re thinking of putting your property on the market in 2017, let’s talk about a marketing plan tailored for your property. Call me at 229-924-3089 or email me at firstname.lastname@example.org.
I have hesitated to write this post because it may seem to be shooting myself and fellow Realtors in the foot. But everyone must adapt to change in how real estate is marketed – ready or not.
What do I mean? For many years the real estate agent was the go-to person to list your property for sale or to get information about listed properties. Now practically everyone with a computer goes online to see listed properties. An owner can post a property for sale (or rent) without listing it. A buyer can look at a property directly with the owner or enlist the help of an agent if desired. Buyers and sellers have more information at their fingertips than ever before.
How are these changes affecting the role of agents and brokers? We are not the essential go-to person in many cases. We are still necessary to unlock doors, show houses, and write and present offers on listed properties. We still provide a valuable service, but we may not have the level of influence over the listing and selling process that we had in the past.
What brought about this change? If we could pinpoint just one thing it would be the advent of the Big Z – Zillow. Do a search for real estate for sale in your location and chances are the Zillow website will be right up there are the top of the page. There you can window shop for listed properties to your heart’s content. Are you selling? You can list your property on Zillow for the whole world to see.
Zillow’s data on properties is not always as accurate as that on Realtor.com, the National Association of Realtors site, but that doesn’t matter for most of the buying and selling public. What does this imply for the Multiple Listing Service, the mainstay of listed properties? The MLS risks becoming redundant in the public eye, if it isn’t already.
What’s the potential effect of this change on the Big Box real estate companies? How does their branding add value to your listing experience as a seller when buyers by the thousands can view your property online and call a Realtor only when they are ready to see a particular house? Does the buyer care who the house is listed with? Probably not; the buyer just needs someone to unlock the door and let him or her see inside.
There’s still a role for real estate agents and companies to play as service providers, particularly for those people who still call an agent or a company for information or to list a property for sale, but as the population ages the way we do things is changing. Younger buyers and sellers typically start the process online and bring in an agent on an as-needed/if-needed basis.
This may be a glimpse into the future of the listing and buying aspects of the real estate brokerage business. From my point of view as an independent broker, it’s the way to go.
I market real estate. You sell it. To explain: Let’s say you list a property with me as your Realtor. I market the property, that is, I advertise it, promote it, and try to find a buyer for it.
You, as the owner, can choose to sell it or not depending on the offer you receive. Only the owner, the title holder, can sell the property. By “sell” I mean to transfer the title to a new owner in exchange for payment.
The real estate agent may bring an offer to the owner. The owner may then enter into a contract with the buyer and transfer title to the property. Thus the agent markets the property, the owner sells it.
My role is to bring a buyer and seller together in a contract. The agent is a broker, a middle man or woman. The agent may represent the buyer, the seller, or neither. The agent always represents his or her broker.
The agent can represent the buyer or seller only with a written agreement signed by both parties.
As a broker, I represent myself. At the same time I can represent you as a buyer or a seller.
Always ask any time you’re not sure about some aspect of a listing agreement or any part of a contract. While a real estate agent or broker cannot give legal advice, he or she can usually explain the terms of a contract as stated in the pre-written contract forms.