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How To Save Half of a Realtor's Commission
How do you hire a full-service realtor and only pay half a commission? It is always surprising when a homeowner is going to hire a realtor to sell his property, especially when he next complains bitterly about paying 5% or 6% to someone who he believes does little or no work. Usually the seller marks up the property to cover the commission which over-prices the property and the result is it doesn’t sell.

Usually, the commission paid to a realtor is split equally between himself and his “broker”, who is the licensed agent in charge of a particular firm. If the commission on a sale is $20,000, the realtor and the broker each get $10,000. Newer methods of payouts to agents include paying “desk fees” to the broker in exchange for higher payouts. For example, if the agent pays $135/month as a “desk fee” he may be entitled to a 95% commission while an agent paying $60/month may only entitled to a 70% payout.

If the agent doesn’t sell the property he listed, but another agent does, the buying and selling brokers each get half of the commission and the 3% commissions are again split with the agent so he gets 1 1/2 % net. So for a $20,000 commission the split looks like - $5,000 each to the two brokers and $5,000 each to the two agents. This is a simplified summary of the process but illustrates the payout procedure. If the agents are on a higher payout because of their monthly desk fees, their portion of the commission is increased and their broker’s portion is reduced proportionally. Industry statistics show that 95%+ of the time the listing agent does not sell the property! So the real money for a realtor is in getting the listing and having another realtor sell it. The largest commission producers in the industry sell listings and not properties.

The way to save at least half of the realtor’s commission is to list with a flat-fee broker who will list the property on the MLS (Multiple Listing Service) and Realtor.com but who does not show the property. The buyer for your property will come from a “buyer’s agent” who brings a client to see your home and make an offer. He is interested in receiving his usual 50% of the full commission or 3% of the sales price. If you offer a 3% commission to the buyer’s agent, you have saved 3% by not having to pay the seller’s agent (listing agent)! In the above example of a $20,000 commission, the agent who brings the buyer still gets $10,000 but you are saving $10,000.

What if you are unfamiliar with the sales and contracting process and you need help? For the $10,000 commission savings you can hire an attorney to review any contract and give you advice usually for less than $500 so you are still ahead $9,500. But better yet, the attorney can give legal advice that your realtor can not, and you have recourse against your lawyer if something goes wrong.

So to save at least 50% of your commission, should you decide to have a realtor sell your house, use a buyer’s agent only and offer him a 2.5% or 3% commission. Another unique benefit of only paying a buyer’s agent is that if desperation sets in and you need to sell quickly, you can increase your payout to the buyer’s agent and attract many more buyers than using a seller’s agent. The highest commission seen in the past year is a 12% commission to buyer’s agents for condo units. In the depressed condo market these days, it is not uncommon to see 10% commissions to buyer’s agents. So if you have decided to sell your home on the MLS using a realtor , you can save substantial money and sell your home faster by focusing on paying only a buyer’s agent to sell your home.

Dave Dinkel has over 30 years experience in real estate investing which has given him a unique perspective into the workings of the real estate market. He has developed a CD entitled "How to Sell Your Home in as Little as 72 Hours", available at no cost for a limited time by going to <a href="http://www.fsbotlc.com">www.fsboTLC.com</a> and he shares even more techniques and secrets in his homeowner's home study course at <a href="http://www.fsboautopilot.com">www.FSBOautopilot.com</a>

Real Estate Formula
It was a simple real estate formula. The ads ran in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. Maybe a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments. When a friend started doing the same thing he explained the process to me. It was a way to get a great return on capital, and it was the opposite of buying with no money down. There is no down payment at all when you buy, because you buy for cash. The Simple Real Estate Formula You probably know that when you buy for cash, you can often get a much better price. With no financing contingencies in the offer, and the promise of a faster closing, sellers are willing to sell for less. You can offer $95,000, for example, on a house that might be worth $108,000. If you can’t get it for less than, say, $99,000, you walk away - there are always other opportunities. Once you buy the house, you put few thousand into high-return repairs and improvements. These might include paint, carpet, and maybe asphalt for a dirt driveway. For our example, we’ll say you spend $5,000. Let’s suppose the house is worth $116,000 now. You’re ready for the next important step in this real estate formula. You put it up for sale, targeting buyers who can’t get financing easily. You provide the financing. Because you are making it easy for the buyer, you can get more than the $116,000 value for the home - and do it without paying a realtor’s commission. Let’s say you sell it for 123,000. The buyer needs a down payment of just 5%, or $6,150, and makes monthly payments of $1230 per month. You charge higher interest than the going rates at the banks, of course. This is a win-win situation. Your buyer is able to buy a home instead of renting, and you get a capital gain of perhaps $16,000 after expenses, plus good interest. Your total rate of return will often be over 20%! In our town, the first to do this consistently were a father and son team of lawyers. They saved money by doing their own foreclosures when necessary. Once they foreclosed, they raised the price and sold the home all over again. They made millions. Did you know that if you can get an average return of 18% on your money, you’ll turn $75,000 into more than one million dollars in about fifteen years? That’s the power of a good real estate formula. Immo Visit Marrakech : Company Of Real Estate In The Marrakech , Morocco : http://www.immo-visit-marrakech.com

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Sellers Tips: Home Sale Preparation
So you are selling your home and need a little guidance on getting it ready for the droves of interested buyers that will be coming to see what you have to offer? No problem. Getting a home ready for shows is a pretty simple thing. All it really takes is some planning and careful execution, a bit of time, and maybe a few bucks but the end result is amazing when done properly. You may even wonder why you are selling the home in the first place! It funny, some people are amazed at how different their home looks when all is said and done.

All right, let’s get down to business. The first thing that you will have to consider is cleanliness. Now, you may say “but my home is already clean!” This might be true, but go and have a look at a new construction show home, how clean is your home compared to that? It’s alright that your home has some mess in it, it is to be expected. After all, nobody lives in a show home and you likely have a whole family in yours right? Ever heard the term “white glove?” Well put one on and go around your home seeking dust and clean anywhere you find it.

The next thing you may want to consider is odor. There are any number of variables that can factor into the smell that a home has. If you are a smoker then this is a huge one. Pets are also great for causing “unpleasant” odors. Getting rid of smells can be tricky as they weave their way into everything, the furniture, bedspreads and mattresses, clothing, drapes, well you get the idea. Airing out the home is a good way to start. Open all the doors and windows and turn on any fans that you have. This should get the air circulating and help the odor situation. Remember that simply “masking” odors with flowery sprays will not solve the problem. Washing and cleaning anything that may hold odor is the way to go.

Let’s think about things that send up red flags to buyers. Wallpaper from the 1970’s, old appliances perhaps also from the 70’s. Old carpets and scratched wood floors are another things that buyers don’t really like to see. Buyers are looking for new fixtures and modern (or at least new) looking appliances and such. Old stuff does not really help a home to sell. Another good idea is to repaint the walls in a nice neutral shade such as beige or cream. It may seem boring but it is much easier to sell a home with beige walls than a home with green or blue walls. Leave the extra decorating to the new owners, they likely will have plans for their purchase anyway.

Eric Badgley is a motivated and professional realtor located in beautiful Whatcom County. For information on <a href="http://www.bellingham-realestate.net/">Bellingham WA real estate</a> contact Eric for <a href="http://www.bellingham-realestate.net/">bellingham real estate</a> or visit online at www.belllingham-realestate.net.