Here is a collection of frequently asked questions that I have put together to help you in buying or selling a home. If you have any other questions, not listed here, feel free to call or send an e-mail.
By clicking on any of the questions below, you may view the answer.
Home Buyer Rebate Program
How are real estate brokers paid when they sell a new home from a Home Builder?
Home builders typically have sales agents they employ to represent them. The builder pays these agents a salary and sometimes a commission. Builders also offer a commission to brokers that bring buyers to them that is typically 3%.
Buyers pay the same price for a new home whether they are represented by their own broker or decide to deal directly with the builder's agent. If a buyer deals direct builder, he pockets an extra 3% profit because the buyer was not represented by an agent. The commission amount to buyer-brokers is paid on the base purchase price of the home excluding options, upgrades and any incentives the builder is offering.
How do real estate brokers get paid?
When a home owner lists their home for sale with a real estate broker (Listing Broker) they sign a Listing Contract that commits them to pay a total commission, typically 6%, to sell the home no matter who sells the home. If the Listing Broker finds the Buyer and sells the home, the Listing Broker gets to keep the full 6% commission. That is $18,000 on a $300,000 home. If another broker finds the buyer and sells the home the Listing Broker would typically split the 6% commission 50/50 with the Buyer's Broker. The Listing Broker receives a 3% commission and the Buyer's Broker receives a 3% commission.
How does a commission rebate benefit the buyer?
Our Preferred Broker will share up to 50% of the commission they receive from representing you as your buyer's broker. A 50% rebate is very generous compared to what other real estate brokers are offering. Most don't offer any rebate whatsoever... Remember, if you bought a $300,000 home and the Preferred Broker gives you 50% of their commission that could be up to $9,000 paid to you at escrow. Assuming a 3% commission paid to the Preferred Broker.
How much do real estate brokers earn?
Commission amounts can vary based on the type of home sold, new home, resale, foreclosure, or short sale. The commission paid to the buyer-brokers can range between 2% and 3.5% of the purchase price of the home. The Preferred Broker will be more than willing to share this information with you.
Is there any restrictions on how I can spend the rebate money?
You can spend the rebate however you choose. Some clients put it towards their closing costs to help reduce the cash needed to close the transaction. Others use it for home improvements such as, air conditioning, landscaping or fencing. It is up to you... You can even use it to take a vacation...
What is a real estate commission rebate?
Real estate brokers are paid a commission based on the purchase price of the home. The typical percentage is between 2.5% and 3%. So if the buyer's broker sold a home with a purchase price of $300,000 and the percentage offered to the buyers broker is 3%. The commission the buyer's broker would receive is $9,000.00 for helping the buyer purchase the home.
A "rebate" is when a buyer's broker gives a portion of the commission to the buyer. The rebate is paid to the buyer once the home has successfully closed escrow and is sold.
Our Preferred Broker will rebate up to 50% of the commission to the home buyer on all homes purchased through them.
Can I cancel my listing at any time?
You can cancel the listing at any time by providing us with written instructions to do so (assuming there is not a contract pending on the property involving a buyer who was procured by a cooperating broker). There are no termination fees or other penalties in the event that you wish to cancel your listing. However, no refunds will be provided after the subject property has been listed by our broker.
Do I have to pay a commission to an agent that brings the buyer?
Yes. Real estate agents do not work for free. To be listed in the MLS, you must advertise a commission to the agent who represents the buyer (aka cooperating broker) . If a real estate agent presents an accepted offer and it goes to closing, you must pay the commission advertised in the MLS listing. The commission is paid at the close of escrow.
Do you assist me when I receive an offer on my property?
No. Under the Flat Fee MLS listing program, our services are strictly limited to listing the property in the MLS. If you feel that you need assistance in interpreting or determining the merits of a purchase offer, conducting negotiations, completing the required disclosures and inspections, or otherwise moving your transaction to settlement, we recommend that you obtain professional representation.
NOTE: Some of our brokers offer full representation for an additional fee (either paid in advance or at closing). If you are interested in that type of service, please inquire with your listing broker.
How can you provide this flat fee listing service so inexpensively?
With advances in technology, realty agents are able to do in one hour today, what would have taken ten times that five years ago. This has led to the advent of “Flat Fee MLS Listing” or “Discount Listing Brokers” and real estate companies throughout North America that offer the similar services as traditional brokerages, with the resulting reduction in costs being passed on to you, the home owner. Home sellers everywhere are retaining higher equity in their homes by refusing to pay high real estate commissions. We provide professional flat fee listing services which can save you thousands of dollars on the sale of your home.
How do I make changes to my listing?
You can make as many price changes or status changes as you need. To request a change to your MLS listing just click on the "Client Support" menu option on the left side menu bar and select "Change Request".
If a buyer calls you about our property what do you do?
We refer all buyer leads directly to you. If a buyer calls and says they are represented by and agent, we suggest they have their agent call you and set up the showing. If a buyer is not represented at this time, however expresses that they wish to be represented by an agent to see your home, the listing broker may show your home.
If I find a buyer with no agent, do I still pay a commission?
No. You are free to sell the property to any buyer not procured or represented by a cooperating broker, in which case no cooperating broker commission is due.
Is your flat fee listing fee refundable?
Must I have a lockbox?
No, but Realtor's® depend on quick access. Realtor's® show many homes within a very short period of time, access to your home may make a difference. We strongly recommend a Realtor® lockbox.
What is the difference between my local MLS and Realtor.com?
Do not confuse Realtor.com with the Realtor MLS. They are two separate systems, and Realtor.com is operated by MOVE, Inc. Realtor.com downloads property data from the hundreds of local MLS’s and makes that property data available to the public.
Realtor.com is not a “For Sale By Owner” website, so seller’s contact information is not available or permitted to be posted. It is acceptable to list the seller as the property contact on the local Realtor MLS; that’s because, it is ONLY accessible to Realtors. We list you as the contact on the local MLS.
The MLS advantage is that every single broker and agent participating in the MLS has an incentive to sell your home, effectively putting every agent in the area to work for you! The first place a buyers agent looks is always the MLS, so there’s simply no better way to gain instant and widespread exposure for your home.
What is the MLS?
The MLS (Multiple Listing Service) is a cooperative listing service among licensed real estate agents and brokers. Members of the MLS input detailed information regarding properties available for sale into a database that is distributed to all participants in the MLS. All members of the MLS have a right to show/sell an advertised property and are promised a commission should they present an offer that results in the successful sale of an advertised property. The vast majority of home sales are made through participation in the MLS.
Why would I want my property listed in the MLS?
As a For Sale By Owner, your exposure to potential buyers is limited. Your choices for advertising are generally confined t yard signs, newspaper ads, for sale by owner and classified websites, open houses, and word of mouth. This is often not enough to attract buyers, most of whom are working with agents. Real estate agents consider the MLS as the inventory of homes to sell and use it to locate properties for their clients.
Real estate agents rarely use newspaper ads or other advertising to locate available properties, even though they may use them for their own advertising. Having your property listed in the MLS will provide needed exposure and will increase the chances that a real estate agent will find a buyer for your home. Real estate agents are motivated to sell properties listed in the MLS because the seller has already agreed to pay a commission.
Will my contact information be displayed?
On the MLS, yes it will be displayed for agents so they can contact you directly for showings. In some cases your broker may also be able to post your email address. On “public” websites, such as Realtor.com or Zillow.com, only the brokers contact information is allowed to be displayed. The reason for this is because the MLS has rules about what information is allowed to be syndicated to 3rd party websites. Neither you, nor your broker can do anything about this, and these rules are strictly enforced.
Will my property be listed on the internet?
Yes. Your property will be listed on Realtor.com and most other popular real estate websites (websites vary depending on syndication feeds from your local MLS). These internet listings will give you national exposure to all home buyers. Since hundreds of people move to other states daily, this exposure can be a vital component in selling your home quickly and for the best price.
Independent websites will obtain your listing directly from the MLS. Keep in mind that they pick up whatever they wish from your MLS listing to publish on their website. Thus, we have no control over these independent websites and we cannot change or edit their content. Realtor.com is the only website that can be edited by your broker, and only if you purchase the “Showcased Listing” upgrade with your listing plan.
Note: All Arizona listing plans include the Realtor.com “Showcased Listing” upgrade.