What do Agents Do For the Commission?

I just heard a commercial over the radio from a local real estate brokerage advertising that they will never charge you, the seller, 6% commission. That it was unfair and that they could save you thousands on the commission when you sell your home if you list with them. "How are they doing that?", I thought. I went to their website and their "services menu". What did I find? Basically, no services! Yes, they will list your home for 4% versus a traditional 6%, with 3% going to the buyers agent and 1% going to them. Seems fair and reasonable, right? Wait! That is the ONLY service they offer. They will put your home in the MLS. There are services out there that will do that for MUCH cheaper. What about marketing, negotiating, handling of issues that come up? THAT my friend, is where the REALTOR earns their money. Anybody with a pulse and a real estate license under a broker can simply put your home in the MLS. Although this is an important tool, IT WILL NOT GET YOUR HOME SOLD, that is unless you price it WAY BELOW MARKET. Thus, not saving you thousands, but costing you thousands. You need an experienced agent that knows how to market your home online and to other agents. You need an agent that knows what is effective when it comes to online marketing and how to get your home seen by other buyers and agents around the globe. Simply listing your home in the MLS will not do that. You need proper property photography, effective verbage, and the capablity to get this listing, along with multiple photos, on major websites and search engines.

The next time you consider one of these "caring" real estate agents that claim to be looking out for you, consider the whole cost. Dig deep with your questioning, ask for marketing examples or a marketing portfolio of their current and past listings. Seller BEWARE!

The BW Home Team offers our clients a break on the commission when they sell their home with us and purchase their next home with our team, while offering excellent, aggresive, professional, marketing and negotiating skills. We welcome all your questions!

Afraid to jump into the real estate market?

Many buyers and sellers that I have spoken to recently are afraid to jump into the real estate market right now. With all the doom and gloom from the media, who can blame them? Sellers are afraid that they'll lose all their profits and equity, while buyers are afraid they'll buy a home and it will lose a big percentage of its value in a short time. So, when is the right time to buy or sell?

In Dallas/Fort Worth, any time is relatively safe. Our market was never in a real estate bubble like we've seen on the east and west coasts and while we have seen home values go down 1 - 2 percent or so in certain areas, mainly home prices are holding steady, not rising or falling. Granted, there are more foreclosures on the market right now and some relocation company owned homes are basically being given away, so there are deals out there, but I don't see home prices tetering on the edge of a cliff, getting ready to plunge down a large percentage.

I will be putting my own personal home on the market this coming spring and purchasing again, regardless of the news the media is putting out at the time. There are always going to be buyers out there, and DFW has gotten some good press on being a great place to work and live. The main thing you should be concerned about is whether your family needs a larger/smaller/more efficient, etc. home right now. The market is not as scary as the national news makes it sound. We are still moving here in Texas!

Is your Realtor still around and if so....for how long?

In response to the recent problems in our nation's economy, 8% of the real estate agents in the DFW area have decided to give up on our market. Predictions are, we will see another 2% - 5% before the end of 2008. Is your agent still in business?

Most agents that get out of the real estate market when times are slower are generally considered in our profession to be "hobby agents". These are agents that try to do real estate on the side, helping an occasional family member or friend. However, generally instead of "helping" that family member or friend, they are hurting them, in most cases more than that client would expect. Hobby agents do not have the experience that full time agents, that is, agents that earn their living through helping people buy and sell real estate, have. 80% of the agents in America typically only handle 2 closings PER YEAR! How can those agents negotiate and get their clients the best deal possible, leaving no money on the table? How can they look out for all the contract loopholes and know how to solve all the unique problems that pop up on almost every contract?

When it comes to choosing your next agent, remember, YOUR family, and YOUR income comes first. Don't worry about hurting someone's feelings. Choosing a Realtor is a business decision and you should go with someone or some team that has experience, education, and also makes you feel comfortable and can easily answer most if not all of your questions. You want an agent/team that is stable and can last through all the highs and lows of the market. Don't cheat yourself!

The Need for Title Companies in Texas

Here I interview Cathy McMullen of LandAmerica American Title in Texas about the need of a title company in Texas.

Demystifying Texas Homeowners' Insurance

Watch Jason Ridley with Allstate and I discuss pertinent topics regarding Texas homeowners' insurance.

Texas Mortgages: Conventional versus FHA Loans, Predatory Lending, and Interest Rates

Doug Martin and I discuss relative topics regarding the Texas mortgage industry.