Upcoming Free (& non-promotional) Home Buyer Classes:
…we also have home seller classes available. Link on left on website page
Saturday, May 18th, from 11am-2pm (ish)
Vancouver YMCA, conference room
11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave).
Thursday, May 30th, from 5pm-8pm (ish)
Marshall Community Center, conference room
1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
Saturday, June 8th, from 9am-12pm (ish)
Marshall Community Center, conference room
1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
If these class dates and/or times don’t work for you, please let us know. We understand that you have lives, and families, and work. We will work something out that works better with your schedule. Just let us know…. ….we also have home seller classes available too…link on left on website
Remember…with reservation…we will throw in lunch, or dinner! 😀
Thank you to everyone who attended the Client Appreciation Event last Saturday! It was a great turn out … even if it was a week after Avengers:Endgame came out! 🙂 Chris Berg, and I appreciate you all for coming to visit and watch a movie with us. Our next Client Appreciation movie events are going to be this Winter for Frozen 2 (c’mon…it will be great! Just ‘let it go’) & for the new Star Wars: The Rise of the Skywalkers movie!! I can’t lie… I am really excited for this next one! 😀 We hope to see you there!
Before I jump into this week (ish) topic I want to get some feedback from you, if possible…. I only email those who requested this blog/email, but I have been getting asked why I haven’t been sending them out. Well, I have been, but it appears that they’re not being received by the emails? I am not a techy person… my 9 year old probably has better tech skills than I do, so I’m trying a new avenue to get these emails to you. If you are getting this email, can you let me know? If I know that at least ‘some’ people are getting it, I am going to assume (yes, I know what that means) that everyone else who doesn’t respond is getting it too. 🙂 Not sure how, or if, this is going to work, but I’m always game to try!!
Secondly, as briefly mentioned at the movie event, the banners that Chris Berg & I use for the community events like the Clark County Fair & the Home & Garden Show…and for the movie events is old and tired. We are in the process of getting new ones, but we need help with the top banner parts for the Home Seller Classes & the Home Buyer Classes. Any ideas for us? You can email me at email@example.com, or email Chris Berg at firstname.lastname@example.org. What taglines do you have for us? Make us laugh! If we choose your tagline for the banners we will have ahhhhmazing gift(s) for you! What is it? Ummm…not sure yet, but it will be ahhhhmazing.
So, the topic this week, and last week, and probably next week is education. Ok, I know every week is about home buyer/seller education, but this week we are going back to the beginning. So last email we talked about some the True/False statements that I’ve been hearing from clients, and emails, and random strangers, and we cleared that up. This week we are going to talk about agency. Who works for whom, and what it means, and how Realtors get paid.
A quick recap of the types of Realtors is probably in order first though….
There are 3 types of Realtors:
The Sellers Realtor:
This is the Realtor hired by the seller (or builder) to represent the seller (or builder) with selling the home. Their job is to market the the home, or community. Their main job is to represent the SELLERS (or builder) to the ‘best of their ability’. This includes experience, education, and knowledge. The Sellers/Builders Realtor works for them. Now,… there is a LOT more to selling a home than just sticking a sign in the yard. Honestly, any fool can stick a sign in the yard to sell a home…but ‘representing the seller/builder’ is different. There is pricing based on active, pending, and sold homes. There is niche marketing…who is most likely to buy that home, or in that community, and how do we reach them? What about showings? Discussions on how to get the home ready. What does the home need? What would be important to buyers? Is the home up to appraisal? Is there staging that will be needed? Is the home show ready? What would a buyer/buyers agent be looking for & at? Are there any repairs that need to be done prior to going on the market? Is it time to set up the photographer? What kind of photos will show the home best? There’s signage, and marketing, and getting the word out. Have we discussed showings? Showing times and availability? Private belongings? Have we discussed security? Part of the Sellers Realtors job is to get the sellers home, and the sellers themselves, ready to go on the market and for showings. This is just getting ready… Once we are on the market, and after we get an offer (or more)… well, there’s more there that the sellers Realtor now needs to handle to facilitate the timelines that are part of the sale, and to help with the transfer. We need to talk about the appraisal. When that happens, and what if it comes in low? That’s a whole other kettle of fish. What about if the seller is selling their home to purchase another one? When do you look at homes to purchase? Juggling the sale, and the purchase of the new home, and the timelines for both… well, that is just part of what a sellers Realtor does. What it boils down to is that the Sellers Realtor protects and represents the seller.
A builders Realtor who sits in that model home is the Sellers Realtor. Their job is to facilitate the sale of the homes for the builder, and yes, to protect the Builders Best Interests. As always, I can not tell you what to do, but it is my opinion that you should ALWAYS have YOUR OWN representation. When you use the builders Realtor, that builders Realtor first concern is the builder.
It’s come to my attention this week, that one of my clients went to the builders model home to ‘check it out’. She told the builders Realtor that she was working with a Realtor already. The Builders Realtor told her (my client) that if she was interested in the home that she needed to ‘write the offer with her so that she (my client) would have a chance since there were “other people interested in this home”. Ok… Builders Realtors are paid by the builder to sit in the model home, and to represent them. If you bring in your own Realtor they still get paid. If you don’t bring in your own Realtor, then they get paid more. Why? Who does that Realtor represent? Yes, the Builder. If the buyer has no representation of their own… who do you think comes out ahead? yep… the builder. In this particular case, my client called me after she had had time to think and asked me what she should do. I don’t really have an answer for her. She is in contract on a home with another Realtor… I can not get involved. I can not advise another Realtors client. She asked if she could cancel that contract, and write it up with me… sorry.. not the way it works. Here’s where it gets sticky(ier)… my client has a home to sell. She asks me about that. I have all her information. We talked about selling it last year, but she wasn’t ready yet…. we knew she wanted a new home this time, and the new developments hadn’t started yet. However, yes, I can help her sell her home. Until… yeah… Builders agent calls her… Builders agent now (of course) wants to help her sell her home too. Remember..who does this gal work for originally? Long story short, but my client (who is no longer my client) calls and says she’s sorry. She wanted to use me, but she didn’t want to lose this home, and the builders Realtor is pushing to sell her home so that it will help with her purchase and she doesn’t want it to be ‘awkward’. Home is now on the market for $15,000-$20,000 less than it should be. Who is that Realtor helping again?
When going into a Model Home, tell the Builders Realtor that you do have a Realtor, and then call YOUR Realtor to do anything further…or better yet… call your Realtor and let’s set up a time where we can go together to go see some model homes. We will take care of the sign up sheets. Remember we are here to help. When you work with a Sellers (or Builders) Realtor, you are really just representing yourself.
So what is the Buyers Realtor job?
A buyers realtors job is to assist the buyer with getting the best home they can in the price range they are pre-approved for. To work WITH the buyers lender to keep things moving, and to assist the lender with any information they need for the buyers loan. It’s important that the buyers Realtor and lender work as a team for the buyer. A Buyer’s Realtors job to work with the buyer from finding a home to getting those magical keys. There’s home inspection, and repairs. There’s the appraisal… what happens if it comes in high, or worse.. what happens if it comes in low? What are your options? What are the legal reasons to walk away? What happens to earnest money? Wait! We still need to discuss earnest money, and timelines. What happens after the appraisal… who is handling what? A buyers Realtor job is the represent the buyers to the best of their ability, experience, education, and skills. To work with the buyers lender, and yes, with the sellers Realtor to keep the transaction on track and running smoothly. When is key transfer? Possession? Have we talked about utilities?
Even when working with a builder, having your own representation is important. Who do you call AFTER the deal is done? If something goes wrong with the home? What happens if you can’t get warranty out there? Who is representing you? A buyers Realtor can also help you negotiate with the builder…. we may not be able to get money off, but sometimes we can get things switched out, or some closing costs, or other advantages that you wouldn’t have been able to get otherwise. What it boils down to is that the Buyers Realtor represents and protects the Buyer
I did say there were 3 types of Realtors, right? So what is the 3rd type of Realtor?
This is the ‘dreaded’ Dual Agent.
So….remember the Builders Realtor from above? The Builders Realtor is the SELLLER’s Realtor, right? As soon as the Builders Realtor writes up the contract for the Buyer on the home they are selling…now they are a Dual Agent. A Dual Agency is someone who is representing the Seller & the Buyer on the Same Home. WHO does the Dual Agency Realtor really represent???
Example… I know a Realtor who when she lists home, does all she can to find that home a buyer… Ok, that is her job, right? Well, yes…of course it is…but she does all she can to bring the buyer HERSELF to the listing. In this case, she represents the seller (seller agent), and the buyers (buyers agent) and is helping the sellers find a new home too. So… she took ONE client and transformed that into how many? Who is she really working for? How does that work? WHO is she representing here? Do you see the possible issue and conflicts here?
If you are married…let’s pretend you are now getting a divorce… Let’s say your soon to be ex hires a phenomenal lawyer… I mean, a REALLY good lawyer. Would you call that lawyer to help you with the divorce too? No…of course, you wouldn’t. Why? Because it is Dual Agency! Ah ha… ephiphany moment there. Also, because legally (with attorneys anyhow) you can’t do that. In real estate, dual agency is not illegal..it’s just my opinion that it is unethical and immoral. In some states, Dual Agency is illegal, but in Washington and Oregon it is legal. You do have to be informed about it, and to sign a paper agreeing to the dual agency. However, most folks will sign something agreeing to it and have no idea what they signed. It makes me sad.
Dual agency is trying to play both sides. You can’t serve two masters. Remember Anakin Skywalker? He tried to serve 2 masters too, and how well did that work out for him? Just saying…
So how do Realtors get paid? It is a myth that sellers pay both agents.. they do not. A seller, as part of their contract with their Sellers Realtor, will talk about and agree on a commission rate. This is called SAC or Sellers Agency Commission. The SELLERS REALTOR will then offer about half of that to the Buyers Realtor. This is called BAC, or Buyers Agency Commission. The Sellers Realtor pays the Buyers Realtor. A Buyers Realtor is free to the Buyer. So how come it is this way? Well, it used to be that there was only one type of Realtor. A Realtor would list the home and people would call them to buy the home. So that was the only Realtor that got paid. Well, unsurprisingly, people were getting taken advantage of. A Realtor is educated on the laws, and contracts having to do with the sale of homes and the transfer of such. In general… the public is not. The more years, or homes a Realtor sales, typically the more knowledgeable we are. The more you do something, the better you know it, right? Well, unsurprisingly, there were many people who felt they were taken advantage of by this practice. They were upset and sued people, and realtors, and the realtor associations. It was a lopsided practice to say the least. Out of all of lawsuits, and claims came change…in the form of … Buyers Realtors. This way the sellers (or Builders) have their own representation with the Seller (or Builder) Realtor, and the Buyers have their own representation by the Buyers Realtor. It did stand that the fee that the Sellers Realtor was being paid stayed, but they were now sharing it with the Buyers Realtor. That is how a Buyers Realtor is free. I always tell my clients that when you buy your home that I’m free (YAY!), but when you sell your home … well, you are paying me, but when you buy your next home I am free again (YAYYYYY!!) … so 3 homes for the price of one? 😀
Gross vs Net. I know you all get this one… You ever look at your check and wonder what happened to your check? In real estate, we are paid gross commission. We do not get paid weekly, monthly, bi-weekly, or anything like that. We only get paid if keys get transferred….that’s it. Because we are commission based, that is our gross pay…before taxes or anything else like: before broker splits, before marketing, before board and association dues, before office bills, before transaction fees, before franchise fees, before business insurances, before miscellaneous office fees, before all of the other costs of doing business like flyers, signage, photographers, cards, gifts, events, gas, extra vehicle insurance, and of course…taxes which run about 25%-35% of our gross checks. Because we are self-employed we do not get employer healthcare, employee matched/retirement accounts, paid vacations (any vacation we go on is a working one. Most of my photos while on vacation show me still on the phone and I have to set up Realtor friends to help me out if there is something I can’t handle while I’m gone), we don’t get weekends off, nights off, maternity leave (I wrote up an offer while in the hospital with my youngest, Harley, and she went to her first home inspection at 4 days old), no bereavement pay/leave, no sick pay, or any type of company car. We never get to ‘shut off’, and we are always on call. We are a 24/7 industry. You call, we answer…or we call back as soon as we can. That’s how we stay in business. We LIVE for your referrals. We want to build that relationship/friendship with you. We are hoping you will call with any questions or any real estate needs you have for …well… forever…
Ok… I apologize…that was a lot of information this week! Any questions? Anything you heard that you are not certain sounds ‘right’? Call, email, or text! I’m hot and cranky (heat is not my friend…my hair you know! It’s a frizzy mess right now)… so you know I will tell you how it really is. LOL… at least I’m funny, right?
Remember that this is just a quick overview…. again…and I can’t say this enough…please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is more about relationships. Your agent, and your lender work for YOU. You drive the bus…we are merely GPS to help you get to your goals.
As always…both the home buyer & home seller classes are Free and Non-Promotional. After teaching these classes for 14 years, we are not there to promote ourselves, or any ‘special’ agenda like some classes, and while we certainly hope you will call Chris or I, or both of us, to help with your home adventure, that certainly isn’t the main focus of the classes, or of these emails. If you have any questions about this, or something you have heard… or if you would like me to assist you with your home adventure… please call, email, or text. We are here to help.
Thank you again for your business and your referrals!! …and thank you for referring these classes to your friends, family, and co-workers.
. ..disclaimer…if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings…
Delayed Possession… What is this & what does it mean to you
Interest Rates (information from Chris Berg,Cardinal Financial)
What do I need to buy a home,
Hiring a Realtor…questions to ask,
What if I don’t have a Down Payment? ….. &….
Debt to Income Ratios….What is this?
Last Week: Home Buying/Selling True or False?
Have a great day, and I will talk to you soon,