Super Saver - New Spin on Realty Costs

“So how do I do that and walk away with some equity?”

With the state of Michigan's housing market the way it is, homeowners are coming up with creative ways to try and sell their homes while turning a profit at the same time. via WZZM-TV Grand Rapids

[Kevin]

Your article doesn't say that if the property is on the GRAR (Grand Rapids Association of Realtors) web site otherwise known as the MLS the seller is to ofer a 3% commission to the selling broker (buyers agent).
There have been many discount brokers trying to cash in, mainly on volume, using some "discount" gimmick for years.
If he can make it on $499 per transaction, more power to him but make sure he at least spells out the fine print. And yes, some brokers cut their commission and should do so if they are not going to do the work required to properly represent a seller.
I would encourage you to check on the legality of the buyer "kick back" program. If I am accurate and he keep doing the, as he states on his web site, money back in the form of a check he will not have his license for too long.
Like I said many agents have tried this cut rate program for years and have failed. Most buyers and sellers would rather have someone properly handling the process...I mean what's next, cut rate medical procedures? How about BSBO (brain surgury by owner).

[George]

What the report fails to mention is that whenever your home is listed on the MLS a compensation for co-operating agents is stil offered. Therefore whether paying your agent for limited services or for full service, you still must pay the 3% to the agent bringing the buyer. So what you pay is $499 or $899 + 3% of your homes value.

Also the report mentions that the client can earn part of the commision and "whats wrong with that?" The answer is that according to Michigan State Law only licensed Realtors can earn a commision!!!

[Joe]

Great bargain. Pay the agent before he/she sells the house, plus pay out 3.5% for a buyers commission at the end of the deal, and pay an extremely high $300-$450 Administrative fee to your Agents brokerage and wha-la! you really have not saved yourself any money. Plus since you paid up front, now if your home does not sell, you are out the up front fee and are going to have to pay another fee or find a traditional agent. Traditional agents don't charge unless the home closes. Get all the facts and do the math. You may not really be saving at all.

[Taxpayer]

I'd never pay a realtor. These people pay a license fee and take a few classes. Most know nothing and just sit around all day and call it a job. I tried working with one a few years ago, only to be stood up on several appointments. That was it for me.

[not a golfer]

Taxpayer wrote:

I'd never pay a realtor. These people pay a license fee and take a few classes. Most know nothing and just sit around all day and call it a job. I tried working with one a few years ago, only to be stood up on several appointments. That was it for me.

There are some bad eggs out there but I agree with Joe...they DO earn their money and there is really no way around some of these costs. I listed my house for the last 2 years on my own and finally broke down and went with a realtor a couple of months ago. The market today is WAY different than it has ever been. No way to sell one on your own now...I tried. Not only that you need to pull out all the stops and go with a home stager to prepare everything just right and you must fix and paint everything. There are just too many other choices for buyers and they will just choose one that is ready to go.

[Elizabeth]

not-a-golfer- TOTALLY agree with you! Our house has been on the market since Sept, and many of our showings have been people our realtor has brought through himself. He told us in the beginning to fix everything that could possibly need fixing, but we didn't listen until a few months ago. Now we're getting much better feedback (and had showing #45 today!). It's an awful market, and you really need someone else to do all the marketing, etc for you right now (unless you're an unemployed person who has all the free time in the world). I don't think I would trust a $499 do-it-yourself type place.

[Taxpayer]

I wouldn't trust a "DIY" system either, but a realtor just isn't worth the high commission. C'mon people, a little common sense. You can do most of the very same things a realtor does. It's all about getting the word out that you're selling. A realtor simply heards people through the mill and puts out ads.
I guess if you want to cut all of those checks, it's your option and your money. Do yourself a favor and really check out who you hire - the person I tried out had all of these "sales awards" when I actually found out he makes only $17,000 a year (poverty level wages) in what he considers a full-time career. How can you get awards for doing so little? It's the industry's little trick for the consumer. They put out these awards to make agents look successful. Buyer and Seller beware.

[Albert]

Another option to consider includes a lockbox and listing on 100s of other websites including Realtor.com is FlatFeeMLSlisting.com

[_Mudman]

I have always had pretty good luck with For Sale by Owner. The last property I sold was about a year and a half ago. A lot has changed since then I know. Like some of you said, many homes to choose from, and it is extremely hard for the seller.

They have like 3 options,(estimated))$250,$500, and $750. Each plan is based on more coverage. I go with the cheaper one, and it involves the monthly magazine and web site. Then I go the extra mile and print up a ton of flyers and leave them here and there. Anyway, good luck to the ones trying to sell, wish you the best.

[BUG]

Taxpayer wrote:

I'd never pay a realtor. These people pay a license fee and take a few classes. Most know nothing and just sit around all day and call it a job. I tried working with one a few years ago, only to be stood up on several appointments. That was it for me.

OH! WHAT DO YOU DO FOR A LIVING? I AM A FEMALE REALTOR WHO HAS WORKED HER BUTT OFF FOR 12 YEARS. I OWN PROPERTIES WORTH OVER 1 MILLION FREE AND CLEAR ( NO MORTGAGES). SO MR. TAXPAYER, BEFORE YOU JUDGE REALTORS BASED ON THE JERK YOU HIRED GO TAKE THE REALTOR TEST. BETTER YET AFTER YOU SELL YOUR OWN HOUSE, HIRE YOURSELF A GOOD ATTORNEY TO HANDLE ALL THE LEGAL STUFF. I'M SURE YOU DO YOUR JOB BETTER THAN SOME OF THE OTHER PEOPLE WHO WORK WITH YOU DO. THERE ARE CLOWNS IN EVERY PROFESSION.

[Title Agent]

BUG wrote:

<quoted text> OH! WHAT DO YOU DO FOR A LIVING? I AM A FEMALE REALTOR WHO HAS WORKED HER BUTT OFF FOR 12 YEARS. I OWN PROPERTIES WORTH OVER 1 MILLION FREE AND CLEAR ( NO MORTGAGES). SO MR. TAXPAYER, BEFORE YOU JUDGE REALTORS BASED ON THE JERK YOU HIRED GO TAKE THE REALTOR TEST. BETTER YET AFTER YOU SELL YOUR OWN HOUSE, HIRE YOURSELF A GOOD ATTORNEY TO HANDLE ALL THE LEGAL STUFF. I'M SURE YOU DO YOUR JOB BETTER THAN SOME OF THE OTHER PEOPLE WHO WORK WITH YOU DO. THERE ARE CLOWNS IN EVERY PROFESSION.

Geez, watch the hostility Ms. Professional. You are representing your career associates. You and I both know the reality of FSBO transactions. Personally with these type programs being offered, I'm feeling pretty good about having a busy career for the coming years; fixing all the flub-ups.

[Gr girl]

I have my house up right now with JT Henderson. So far I have really liked the program. It has been very aventagous for me to be able to list my open house days and times up on the mls (grar.com, plus I am working with a lady I really like, she has been so helpful. I had my house up FSBO, but I needed that marketing aspect that the MLS gives me. Had an open house last week, people were rollin through, things are looking up! Plus the website hits on my house have tripled since January. I'm crossing my fingers!!

[Mistatefan]

I'm a former realtor. Certainly some people need realtors while others may not. But you should know the rules and the laws before you sign up for these DIY websites. Many are scams. If an agent on the MLS sells your home, they get their commission. You still have closing costs.(Think title company, etc). It's not as if it "only" costs $499. Another thing to keep in mind when you are purchasing a home, a realtor costs you nothing, zero, zip, nada. They money they earn is the commission from the seller. So why not call a realtor and let them do the work for you?

[Taxpayer]

Title Agent wrote:

<quoted text>
Geez, watch the hostility Ms. Professional. You are representing your career associates. You and I both know the reality of FSBO transactions. Personally with these type programs being offered, I'm feeling pretty good about having a busy career for the coming years; fixing all the flub-ups.

I guess this is just another example of why I don't work with realtors. My time is worth more than what they can offer.

[homeowner]

as I drive down the street and see all the homes for sale in our area, I have to ask my self how do I get mine sold? So I did a little bit of research to see what company had the highest sales in our area last year. Then I compared that number to this company and I was shocked. For the number of signs I see around the sales number for this company is very small. What I found out is a lot of people are paying this amount of money up front and their house never sells. So not only are they out the $499 (or more) they now have a full service realtor they are paying. Sounds to me like JT is the only one getting ahead here.

Like my grandma always said: if it sounds to good to be true it usually isn't!

[stay at home mom]

Mistatefan wrote:

I'm a former realtor. Certainly some people need realtors while others may not. But you should know the rules and the laws before you sign up for these DIY websites. Many are scams. If an agent on the MLS sells your home, they get their commission. You still have closing costs.(Think title company, etc). It's not as if it "only" costs $499. Another thing to keep in mind when you are purchasing a home, a realtor costs you nothing, zero, zip, nada. They money they earn is the commission from the seller. So why not call a realtor and let them do the work for you?

I would never try to sell my home myself. It's a lot of hassle and realtors have access to everything needed to sell it.

[Michigan Realtor]

I am a licensed realtor in Michigan for 6 years now. I will agree with everyone, the market is tuff, too many homes, too few buyers. Hey, if you can sell your home yourself, great! If you sell it by a DIY real estate company great! It does save you a lot of hard earned money. The fact is, all a DIY realtor does is put a sign in the yard, puts it in the MLS, and collects a check whether it sells or not. They don't try to find a buyer, or have open houses. Most sellers don't have the knowledge and sales experience to know what to say, and what not to say to a potential buyer. People think real estate is so easy, than why does only 10% of agents make it longer that 3 years? I'm sure that more than 10% of cashiers, or bank tellers, or road construction workers last longer than 3 years. It takes a special breed of people to help buyers and sellers in the real estate market as a full time job to earn enough money to put food on the table. No matter what happens, the sale of a home doesn't come down to "oh its painted with new carpet", or "its staged and looks move in ready", it always, always, comes down to price. And with it being a buyers market, price is more important now than ever before! A FSBO can have 1,000 people look at the home with no offers, but knowing how to price it accuratly is a sure sign that it won't sell. Realtors' earn what they earn because they know the market and they know property value. With experience and knowledge comes a paycheck, and a hug from the seller. I have helped many FSBO's and EXPIRED DIY sellers who asked the question, "Why didn't my home sell? We had a lot of showings and a lot of sundays wasted on open houses." Then when I prepared a market analysis just to tell them they wasted 2 years because the home was way overpriced based on sentimental value, not property value. Its true, sometimes homes do sell FSBO or DIY, and thats wonderful,but if your serious about selling, and need to price the home to move, the only sure-fire way to do that is to hire a full-service agent in your area, and listen to what they say!

[Michigan Realtor]

There's no doubt about it, when you go to court, you hire an attorney. When you get your haircut, you go to a barber. When you need your computer fixed, you hire a geek. Sure you could try yourself, but then you end up in jail, with a bad haircut, trying to surf the net on a computer with a virus. Just like selling your home, you hire a professional. Thats the reason these DIY realtors go out of business, theres only so many people that will give up $495.00 just to end up with a home thats not sold, and a headache!

[Michigan Realtor]

Comment to me directly--- [e-mail]

[Michigan Realtor]

By the way, I don't know how it happened, but in my first comment where it says "****", thats supposed to be the word "carpet"