Real Estate Agents - Re: Need your input on sale of property

Author

Re: Need your input on sale of property

Steve Horrillo

2005-07-30, 9:21 am

On 29-Jul-2005, kimshapiro100@yahoo.com wrote:

> A friend in the Bay Area, California is thinking of selling her
> property...house.
>
> She has heard of Help u Sell...
>
> Does anyone have experiences with this company ?
>
> Any input ?
>
> Any economic alternatives to using Help u Sell ?
>
> Any thoughts would be highly appreciated.
>
> Thanks
>
> Kim

Help-U-Sell is fine as long as the contract says that you will give the
buyer's agent at least 3% in the MLS. The problem with discount brokers is
that they think they can pass off their discount to the one who is going to
get your home sold without any consequences. The problem with trying to
screw the buyer's agent is it's the buyer's agent who does most of the work
and who decides which house their buyer sees.

When the sales person / Realtor arrives ask them to do a 1% / 4% split. In
other words, 1% commission to the listing agent and 3% to the selling agent.
And also make sure it is understood you will be getting a "FULL SERVICE"
listing. Which means a agent will be there at the appraisal, walk-through
and closing. If you can find a Realtor who will do that for 1% you've got
yourself a REAL bargain. Anything other than that is a just a marketing
come-on. I suggest you add 10% to the asking price and pay 7% to the agent.
Just make sure they put it in the MLS as a 3.5 / 3.5 split.

Help-U-Sell will also offer you a lower price option and not even put your
house in the MLS. They will advertise you in their website, billboards, bla
bla bla... Don't even go there. You'll always be able to add 10-20% to a
reasonable asking price, put it in the MLS and get it. If you're not going
to put it in the MLS you don't need a Realtor. A Realtor who doesn't compell
you use the MLS is either ignorant, desperate, or the lowest of the low. You
want run away FAST from any agent who doesn't understand the selling power
the MLS has.

--
Warmest regards,

Steve Horrillo, Realtor / C.Ht. =^..^=
http://BrokerAgentTraining.com http://over100percent.com http://HipFSBO.com
http://eLOWn.com

Tim4Homes

2005-07-30, 2:21 pm

Steve,

In CA, the "customary commission" is now 2.5% to the buyer's agent. Rarely
do we see any agents offering beyond that.

When an agent offers a bonus to the agent, it is not always in the best
interest of the buyer. Sure the agent will make more money, but that clouds
their judgement on finding the best property for the buyer's needs, which
should be foremost in their mind.

There is nothing cheap about 2.5%. If a selling agent can properly promote
a property, handle all of the paperwork, advise the seller on preparing the
property, and spend countless hours communicating with buyer's agents ...
all for the 1% you suggest ... then surely 2.5% is not an insult to a
buyer's agent !

In my own experience, I have actually had buyers find my listed property
through the internet, or via an open house, then call their agent to write
an offer. The agent has spent virtually no time with them, and this
laziness carries over to the complete transaction where I'm expected to do
all of the work for both sides. Now how is that worth 3% or more ?
Granted, once its in the MLS, we pay the commission, but the buyer's agent
in this situation is certainly not the "procurring cause" .... they just
handle the original offer.

Of course, a viable buyer's agent is worth the full commission. However, in
the Bay area where properties easily exceed $800,000 in selling price, a
buyers agent earns $20,000 at 2.5%. If they are working on their own, or in
a 100% commission office, that means their net after normal expenses (
unless they own an office ) is about $19,000. If you look at the average
time it takes to find, show property, write an offer, and shepard the
purchase on behalf of the buyer, that is still a very good hourly rate !

Tim

"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:1OJGe.40420$sJ4.22491@bignews5.bellsouth.net...
>
> On 29-Jul-2005, kimshapiro100@yahoo.com wrote:
>
>
> Help-U-Sell is fine as long as the contract says that you will give the
> buyer's agent at least 3% in the MLS. The problem with discount brokers is
> that they think they can pass off their discount to the one who is going
> to
> get your home sold without any consequences. The problem with trying to
> screw the buyer's agent is it's the buyer's agent who does most of the
> work
> and who decides which house their buyer sees.
>
> When the sales person / Realtor arrives ask them to do a 1% / 4% split. In
> other words, 1% commission to the listing agent and 3% to the selling
> agent.
> And also make sure it is understood you will be getting a "FULL SERVICE"
> listing. Which means a agent will be there at the appraisal, walk-through
> and closing. If you can find a Realtor who will do that for 1% you've got
> yourself a REAL bargain. Anything other than that is a just a marketing
> come-on. I suggest you add 10% to the asking price and pay 7% to the
> agent.
> Just make sure they put it in the MLS as a 3.5 / 3.5 split.
>
> Help-U-Sell will also offer you a lower price option and not even put your
> house in the MLS. They will advertise you in their website, billboards,
> bla
> bla bla... Don't even go there. You'll always be able to add 10-20% to a
> reasonable asking price, put it in the MLS and get it. If you're not going
> to put it in the MLS you don't need a Realtor. A Realtor who doesn't
> compell
> you use the MLS is either ignorant, desperate, or the lowest of the low.
> You
> want run away FAST from any agent who doesn't understand the selling power
> the MLS has.
>
> --
> Warmest regards,
>
> Steve Horrillo, Realtor / C.Ht. =^..^=
> http://BrokerAgentTraining.com http://over100percent.com
> http://HipFSBO.com
> http://eLOWn.com

homan4

2005-07-30, 3:21 pm

In NY the top producing agent in the area had it in with his broker about a
few issues, he ended up leaving and rather than go to another broker he
opened a "Help-U-Sell" franchise.

I always used their ads in my listing presentation. They showed Mr. & Mrs.
Pennywise and Pound foolish in front of a home with a caption "These folks
saved $10,000 in commissions." Inevitably, a check of the MLS would show
the home also sold for $20,000 to $30,000 less than comparable homes sold by
the full service companies in the same neighborhood at the same time. Let's
recalculate the savings. Although cooperating agents didn't get paid much
for the sale (usually 1.5% where the average was about 2%), many would look
for their listings to sell to investors who would flip them. The best one I
saw was an investor who bought one of their listings - a highly visible
property close to the high school, listed for $249,000 and sold for $239,000
and flipped it two weeks after closing for $315,000 after doing no work to
improve it. Keep in mind they were working as a fiduciary agent of the
seller, and couldn't even get the buyer to full (deeply discounted from fair
market value) price. To be honest, I have more respect for "No money down"
graduates than for these agents, if the seller is going to get so little for
their home, why pay a commission?

I also used to point out several listings I had where the selling side
commission was 3.5% (high for that area the usual was 2%) and the first
three or four showings were usually by the Help-U-Sell and Assist-2-Sell
agents - and on all occasions the first agent in was the Help-U-Sell
broker's daughter. The reason being they could make more money selling my
listing than listing and selling one of their own. I always asked potential
sellers if they wanted to have their house advertised with these companies
when their agents were going to use the bait & switch to sell mine anyway.

The best story was when I went to a broker open house for lunch one day, the
Help-U-Sell broker was holding an over priced turkey with a 1% selling
commission open for agents. He told me the owner was a former agent from a
full service broker in town, and asked me if I could think of a better
compliment. I said "yes, asking you to sell the home with a reasonable
selling broker commission and a reasonable selling price." I hope you get
the picture, the old adage "you get what you pay for" applies here.

"Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
news:1OJGe.40420$sJ4.22491@bignews5.bellsouth.net...
>
> On 29-Jul-2005, kimshapiro100@yahoo.com wrote:
>
>
> Help-U-Sell is fine as long as the contract says that you will give the
> buyer's agent at least 3% in the MLS. The problem with discount brokers is
> that they think they can pass off their discount to the one who is going
> to
> get your home sold without any consequences. The problem with trying to
> screw the buyer's agent is it's the buyer's agent who does most of the
> work
> and who decides which house their buyer sees.
>
> When the sales person / Realtor arrives ask them to do a 1% / 4% split. In
> other words, 1% commission to the listing agent and 3% to the selling
> agent.
> And also make sure it is understood you will be getting a "FULL SERVICE"
> listing. Which means a agent will be there at the appraisal, walk-through
> and closing. If you can find a Realtor who will do that for 1% you've got
> yourself a REAL bargain. Anything other than that is a just a marketing
> come-on. I suggest you add 10% to the asking price and pay 7% to the
> agent.
> Just make sure they put it in the MLS as a 3.5 / 3.5 split.
>
> Help-U-Sell will also offer you a lower price option and not even put your
> house in the MLS. They will advertise you in their website, billboards,
> bla
> bla bla... Don't even go there. You'll always be able to add 10-20% to a
> reasonable asking price, put it in the MLS and get it. If you're not going
> to put it in the MLS you don't need a Realtor. A Realtor who doesn't
> compell
> you use the MLS is either ignorant, desperate, or the lowest of the low.
> You
> want run away FAST from any agent who doesn't understand the selling power
> the MLS has.
>
> --
> Warmest regards,
>
> Steve Horrillo, Realtor / C.Ht. =^..^=
> http://BrokerAgentTraining.com http://over100percent.com
> http://HipFSBO.com
> http://eLOWn.com

Allen Greenspan

2005-07-31, 3:21 pm

What we see in these posts are desperate and misguided attempts to scare
consumers to maintain the status quo, i.e., exorbitant realtor fees and
commissions. In the kind of market we currently have, most homes 90%+ are
sold from the signage, not MLS.

I suggest you FSBO or insist that the Help U Sell agent does not list with
MLS, as it reduces the seller proceeds by 3%, which I feel is foolish in the
kind of market we have. Realtors always say the house was sold under market
if they don't get a fat commission.

I have sold several homes FSBO, gotten more than the sales price and closed
in days, not months. Realtors are scared to death that the general public
will learn that Realtors, like a parasite, offers little to the consumer in
relationship to what they take. A good loan officer could instruct you and
since the loan officer and title company do 95% of the work involving the
sale of real-estate, you will never miss the realtor. But you will keep 3%
more of your proceeds at closing\

Watch the rancorous responses this simple truth brings from the traditional
real-estate community.

Hit me back if you wish for more detailed info. jvent68@yahoo.com

jv

"homan4" <homan4@cox.net> wrote in message
news:69PGe.5863$Tr6.1120@lakeread02...
> In NY the top producing agent in the area had it in with his broker about
> a
> few issues, he ended up leaving and rather than go to another broker he
> opened a "Help-U-Sell" franchise.
>
> I always used their ads in my listing presentation. They showed Mr. &
> Mrs.
> Pennywise and Pound foolish in front of a home with a caption "These folks
> saved $10,000 in commissions." Inevitably, a check of the MLS would show
> the home also sold for $20,000 to $30,000 less than comparable homes sold
> by
> the full service companies in the same neighborhood at the same time.
> Let's
> recalculate the savings. Although cooperating agents didn't get paid much
> for the sale (usually 1.5% where the average was about 2%), many would
> look
> for their listings to sell to investors who would flip them. The best one
> I
> saw was an investor who bought one of their listings - a highly visible
> property close to the high school, listed for $249,000 and sold for
> $239,000
> and flipped it two weeks after closing for $315,000 after doing no work to
> improve it. Keep in mind they were working as a fiduciary agent of the
> seller, and couldn't even get the buyer to full (deeply discounted from
> fair
> market value) price. To be honest, I have more respect for "No money
> down"
> graduates than for these agents, if the seller is going to get so little
> for
> their home, why pay a commission?
>
> I also used to point out several listings I had where the selling side
> commission was 3.5% (high for that area the usual was 2%) and the first
> three or four showings were usually by the Help-U-Sell and Assist-2-Sell
> agents - and on all occasions the first agent in was the Help-U-Sell
> broker's daughter. The reason being they could make more money selling my
> listing than listing and selling one of their own. I always asked
> potential
> sellers if they wanted to have their house advertised with these companies
> when their agents were going to use the bait & switch to sell mine anyway.
>
> The best story was when I went to a broker open house for lunch one day,
> the
> Help-U-Sell broker was holding an over priced turkey with a 1% selling
> commission open for agents. He told me the owner was a former agent from
> a
> full service broker in town, and asked me if I could think of a better
> compliment. I said "yes, asking you to sell the home with a reasonable
> selling broker commission and a reasonable selling price." I hope you get
> the picture, the old adage "you get what you pay for" applies here.
>
>
> "Steve Horrillo" <usenet@stephenhorrillo.com> wrote in message
> news:1OJGe.40420$sJ4.22491@bignews5.bellsouth.net...
>
>
>

homan4

2005-07-31, 7:21 pm

> What we see in these posts are desperate and misguided attempts to scare
> consumers to maintain the status quo, i.e., exorbitant realtor fees and
> commissions. In the kind of market we currently have, most homes 90%+ are
> sold from the signage, not MLS.

Desperate? Misguided? Attempt to scare consumers? I think not. Perhaps
you should consider this the voice of success and experience tring to
educate desperate and misguided consumers.

I do not know where you get your numbers from. The actual NAR statistics
are 20% of sales come from sinage, 40% of all sales come from contact with
agents. Or an agent who puts a sign in front of your home is three times as
likely to find a buyer than if you just put a sign up yourself and hope it
for the best. Admittedly, these statistics are old. In the market where I
work homes move so fast that many are sold before the signs are put up.

> I suggest you FSBO or insist that the Help U Sell agent does not list with
> MLS, as it reduces the seller proceeds by 3%, which I feel is foolish in
> the kind of market we have. Realtors always say the house was sold under
> market if they don't get a fat commission.

Why so bitter about people being paid for their services? Yes, realtors do
say homes are sold under market when realtors are not involved. Although
this is a generalization, and you may have anicdotal evidence to the
contrary, on the average nationwide last year realtor sold homes sold for
over 14% more than private sales. I guess we are guilty of having facts to
back our convictions.

> I have sold several homes FSBO, gotten more than the sales price and
> closed in days, not months. Realtors are scared to death that the general
> public will learn that Realtors, like a parasite, offers little to the
> consumer in relationship to what they take. A good loan officer could
> instruct you and since the loan officer and title company do 95% of the
> work involving the sale of real-estate, you will never miss the realtor.
> But you will keep 3% more of your proceeds at closing\
>

Parasite? Lets face it there are good and bad in every industry. I just
had two closings almost turn to lawsuits because of incompotent loan
officers. I have also seen incompotent title companies. How many millions
has First American Title Co paid nation wide over the last few months for
illeagle kick backs? The fact of the matter is that most mortgage officers
and title companies base their business on realtor referrals.

> Watch the rancorous responses this simple truth brings from the
> traditional real-estate community.

You have given a few anicdotal tales of personal homeselling, nad made a
bunch of outrageous statements with no facts to support your claims. I have
answered your claims and challenged your vitriolic name calling. If you
constrew my comments as rancorous, so be it, but this group is called real
estate agents, of which I am one, and from your comments, i would guess you
are not.

Steve Horrillo

2005-08-12, 11:21 pm

On 31-Jul-2005, "Allen Greenspan" <allengreenspan@juno.com> wrote:

> A good loan officer could instruct you and
> since the loan officer and title company do 95% of the work involving the
> sale of real-estate, you will never miss the realtor. But you will keep
> 3%
> more of your proceeds at closing\
>
> Watch the rancorous responses this simple truth brings from the
> traditional
> real-estate community.

I might if I didn't know you were a troll.

--
Warmest regards,

Steve Horrillo, Realtor / C.Ht. =^..^=
http://BrokerAgentTraining.com http://over100percent.com http://HipFSBO.com
http://eLOWn.com

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