Free Information for Sellers

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I realize how frustrating it can be when you think you’re about to get some great information immediately, only to find you’ve got to register and wait for it. That's why I provide information to my prospective clients without requiring registration. Then, when you are ready, call or e-mail and we'll discuss it further.

Handouts for Sellers

12 Questions to Ask When Choosing a REALTOR®
Eight Reasons Why You Should Work With a REALTOR®
Does Moving Up Make Sense
Five Feng Shui Concepts to Help Sell a Home
How to Get an Offer on Your Home
Low Cost Ways to Spruce Up Your Home's Exterior
Moving Checklist for Sellers
Open House Safety Tips
Simple Tips for Showing Your Home
Things to do Before Putting Your Home on the Market
Understanding Capital Gains

All Seller Handouts & More
Tips on getting your home ready to sell, repair issues and frequently asked questions.

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Are you serious about selling your home?

Grab a cup of coffee, soft drink, tea, etc., get comfortable and read on.

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A 2007 National Association of REALTORS^® survey found that 84% of buyers used the Internet to search for homes, 8% knew or were related to the sellers, 3% found the home by the seller’s actions and 3% found the home in the newspaper. 84% of all home buyers also used the services of a REALTOR® and were very satisfied with the results.

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How Are REALTORS^® Paid?

This is one of the most confusing aspects of a real estate transaction and requires a detailed explanation. REALTORS^® are paid on commission but there are probably some facts you do not realize.

Who Pays?

First, let's cut to the chase. In all of the NTREIS MLS listings, the commission is paid by the seller (of the property) to their broker at closing. This is accomplished by using the funds from the sale of the home. The seller's broker, in turn, will pay the buyer's agent a co-op fee for "selling" the home for them. That's why buyers do not pay an agent commission, even when they have their own agent.

Of course, before any commissions are paid, buyers and sellers must first hire us. Hiring contracts are used for this purpose and in Texas it’s called a RESIDENTIAL BUYER/TENANT REPRESENTATION AGREEMENT. State law requires us to explain details regarding Information About Brokerage Services. at our first significant meeting.

How is the commission divvied up?

Commissions are paid to and distributed by the listing broker. The listing broker retains a portion of the funds before dispersing funds to the listing agent. The listing agent is the person who manages the sale, the one who put the sign in the front yard.

If the buyer is represented by an agent, the listing broker will “split” the commission and pay the employing broker of the buyer’s agent. This is called the Co-op fee or Buyer’s Agent Commission (BAC). The buyer agent broker will retain a portion and pay the remaining amount to the buyer agent using any fee schedule they’ve agreed upon.

The fees subtracted by the brokers are used to pay for the services provided by the broker companies including huge overhead expenses like office space, advertising, phone, insurance, etc. By the time all the fees have been subtracted, the buyer and seller agents will receive a fraction of the total commission paid.

Most firms still charge the sellers a 6% fee splitting the fee to 3% for each side of the transaction.

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I offer my seller services to my clients for either a flat fee plus a small closing fee and a BAC (if a buyer’s agent is involved - no BAC if they find the buyer) or a contingency fee of 1% (minimums apply) plus a small closing fee and a BAC. It's a little more involved so call me and we'll discuss the details. Or you can go here to read more about the program.

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Is there a difference in marketing plans?

Each marketing plan is unique to each brokerage firm and even to each agent but most are identical in many respects. Marketing plans for real estate sales are developed long in advance of the agent showing up at your door. These plans are put into place so that as soon as an agent takes a listing, the home is “plugged” into the plan – regardless of the asking price.

How can you afford to charge less than others?

Whenever any broker takes a listing there is always a risk that the home will not sell right away for any number of reasons but the costs to market the home remain. Traditional brokers make up for that by charging everyone a high fee. Since that risk is removed from my business model, I do not need to ask for high fees.

Additionally, my broker does not have huge overhead expenses to cover. We do not have multi-million dollar office spaces with $1,000 mesh chairs and solid mahogany conference tables. We have two modest offices with over 600 agents serving folks all over the Dallas / Ft. Worth Metroplex. Since my broker charges me a low transaction fee, I get the freedom to provide the same high level of service I have in the past but offer it at a much lower rate.

Furthermore, I do not focus on areas of marketing that return marginal results at best. These include open houses, postcard mailers and traditional newsprint advertising.

One of the big secrets in real estate is that, more often than not, it costs the same to market a $100,000 home as it does to market a $400,000 home. There are some things one can do to increase the cost of marketing the higher priced home like hosting catered parties for agents, sending out hundreds of postcard mailers, and listing the home for sale everyday in a local newspaper. While I’m not opposed to doing those things, here’s how I view them.

Private Parties

The parties are for the benefit of area agents to view your home in hopes they’ll remember your property when they have a client. The reality is the buyer’s agent is duty bound to the buyer and your home will not be the only home they’ll tour. Therefore, if your home doesn’t meet their client’s needs, their client will keep looking. Plus, when your home is listed, the marketing plan in place at the brokerage firm should automatically include your home at least once on the weekly MLS agent tour where area agents can tour your home in person – at no additional cost. (In other words a private open house is not really required.) The time when that type of “open house” is most effective is when you introducing something new to area agents like offering a higher BAC or a bonus. If the sellers and I believe this is something we should offer, they agree to pay the expenses (at cost) and I don’t have to charge them a higher commission.

Postcard Mailers

Personally, I believe postcard mailers are thrown away and waste valuable, natural resources.

Newsprint Advertising

A 2007 NAR survey revealed that 3% of home buyers found their home in the newspaper* - can't argue with facts. Online Newspapers are a different matter because they fall under the Internet catagory. This is an option I advise my sellers to strongly consider. Current Dallas Morning News, Online Real Estate Ad Pricing.

Open Houses

I let my clients host their own open house, if they wish, and I’ll teach them the do's and don'ts. It is increasingly more likely my clients will find a buyer with my business model. My clients have an 11% chance* they’ll find the buyer and not have to pay me or another agent a buyer’s agent commission.

What is a REALTOR^®?

Not all licensed real estate agents and brokers are REALTORS. REALTORS are licensed salespersons or brokers that are members of a local board. To use the REALTOR registered trademark, an agent must be a member of the National Association of REALTORS (NAR) and must follow the strict code of ethics.

All of the licensed professionals at The Michael Group are REALTORS.

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* 2007 National Association of REALTORS^® survey indicated that 84% of buyers found their home on the Internet, 8% knew or were related to the sellers, 3% found the home by the seller’s actions and 3% found the home in the newspaper.