0% Commission Real Estate Agencies and Brokers ???

You know what they say about things that are too good to be true? They usually are. Case in point. The latest gimmick to hit real estate sales is no seller commission real estate. It sounds great doesn’t it. Sell your home and pay no commission. What a bunch of great guys. They will sell your home at no cost to you. They claim to provide full service. All the services a Realtor® provides. And here comes the best part (and the sales pitch again and again) 0% commission. These real estate brokers are NOT Realtors®.

Sellers: Beware this is an illegal scam to get your listing and it will COST YOU THE SELLER THOUSANDS !!!!!

Buyers: Read the fine print. The advertised price does not include a buyers premium.

These guys will not explain on thier websites there scheme. You have to schedule an appointment for them to explain it to you. That paranoia they justify by saying competitors want to steal trade secrets. Too bad buyer’s agency has been around for years. Or if they represent the seller, as they claim (for free of course) then what kind of “free” representaion do you get when they look to buyers for compensation? That is called dual agency and must be disclosed. Undisclosed dual agency is illegal and could get YOU THE SELLER SUED( if you don’t believe me call the New York State Department of State and ask). Yet these guys claim to work only for sellers. Hmm? sounds fishy to me. They really want to get there foot in the door with promises of no seller commission or costs. What is there gimmick. Simple, buyers pay commission. What a concept. Sounds great doesn’t it. The problem is that sellers are not the only party in the transaction.

These guys have the nerve to say you will get “more competition from buyers” That is a bald face lie. Here is why.

Does the owner of a car dealership pay his sales people or do the car buyers pay the sales people? If you were shopping for a car and a sales person said “ok this car is $10000″. You say “ok”. Now the sales person says “but it really costs $11000 because you now have to pay my commission”. What would you do? I would walk. It is called false advertising. Advertising at one price and adding hidden COSTS later.

If buyers pay commission at the closing table then they will have to bring that money to the table. Thousands of dollars cash out of pocket at closing. Even at 4% for a home costing 150k that is six grand more a buyer has got to bring to the table to buy one of these buyer-pays-commission (BPC) broker’s listings. Most people have all they can do to come up with funds to close as it is. Imagine having to bring $6000.00 more to the table to pay the broker. Is that full service? Deceiving the public with illegal bait and switch tactics and illegal undisclosed dual agency? Ultimately the buyer’s bank must “fund” the transaction. If buyers have to come up with thousand more at closing why would they buy your house. When the Realtor’s listing down the street will cost thousand less out of pocket at closing?

These brokers also engage in ILLEGAL “steering” or funnelling buyers through thier lawyers and mortgage brokers, done for buyers as a “free” service. This is done because most lawyers and mortgage brokers know 0% is is a scam. Anyway I thought they only “represent” sellers??????? Beware Mr. and Ms. seller you COULD GET SUED.

If you list with the BPC broker your home will not be listed on any MLS or Multiple Listing Service. Is that full service?

You basically have no online exposure or incentive for the thousands of area Realtors® to market your home. Yet they claim you will get “more competition from buyers”. HOW?

Your home will not be listed on http://www.Realtor.com . The fourth most visted real estate website in the world. Your home will not be listed on any websites other than the BPC broker’s site. These broker’s sites are poorly designed having limited info regarding your home. They also get very little traffic. Even the number of listing views can be manipulated on these websites. Simply by clicking on print or printable flyer, just watch the number count roll up. Like I said no exposure. Did you ever visit a Realtor’s website and search MLS homes? You will notice ALL MLS listings are available. Not just the listing broker’s listings. That is how and WHY the MLS and IDX(Internet Data Exchange)works. Buyers can find your home on thousands of area Realtor websites. Exposure, exposure, exposure. The illegal BPC broker can’t do that with your listing. They are not MLS members and they don’t play by the rules.

These sites claim not to be discount brokers and they are “on top of technology”. These guys don’t have a clue when it comes to technology or online real estate marketing. You can not be on top of technology when your sites can’t be found. Also not being Realtors they can not list homes on all the major Realtor sights like Realtor.com TimesUnionHomes.com and Thousands of other Realtor Internet Data Exchanges. The number of online views of your home is in the thousands when you list with a Realtor.

The very definition of a discount broker is one who discounts his commission while providing limited service and offering no selling compensation. These guys are worse than discount brokers at least “discount brokers” list on the MLS. (Yes Realtors sell homes because we get paid).

Other sevices are: No charge if your home does not sell. And: Only showing prequlified buyers your home. BIG DEAL AND BIG DEAL. Realtors do not charge if your home does not sell. I know of no Realtor who wastes anytime whatsoever with clients who can’t afford to buy. Why would they.

The BPC brokers claim to give you a fair market analysis of your home. How can they when they do not have all the information to do that? 70% of homes are sold using the MLS and for good reason. It works. All that statistical information regarding 70% of all home sales belongs to Realtors®. A Realtor® can tell you how many homes sold and for how much. What was the average days on the market for homes. The BPC broker has no access to this info. Not knowing the market will COST you. House prices six months ago are not the same as today. To see one of my market condition reports on Reator.com click on this link: Market Condition Reports

When you market your home you want as much exposure as possible. We advertise your home on two multiple listing services. The Greater Capital Region MLS and the Fulton County MLS. That puts thousands of area Realtors® to work for you. We put your house online at all of Real-e-SmartRealty.com’s websites, Realtor.com, The Albany Times Union’s Homeport and Realtor IDX links world wide. Litterally millions of viewers can find your home with a few mouse clicks from THE most visted real estate website’s home pages. The BPC broker can’t do that for your home. The MLS doesn’t work that way and they are not members.

• So you can see “No-Cost-to-Seller” Real Estate has many hidden COSTS. First by driving away buyers with bait and switch tactics and illegal false advertising. Think about it, would you buy a home when the broker wants you to pay him/her on top of the asking price? COSTING BUYERS at the closing table thousands more than if they used a Realtor®?
• Illegal undisclosed dual agency( representing both the buyer and seller) could very well get you and the BPC broker sued.
• Inacurate market analysis’. How can a BPC broker tell you what homes sold for when he leaves out 70% of the sold homes on his “market analysis”?
• Next they give your home very little to no online exposure. 80% of home buyers start there search online. No MLS. No Realtor.com. No Times Union Homes. No IDX (Internet data exchange). Basically no exposure other then on the BPC site. The BPC brokers claim to Cooperate with Realtors. Not so. If they did they would be members of an MLS. Why would one of my buyers want to pay a Buyers premium? When all the other homes I show them the seller pays. No cooperation. They pocket your listing for an in house sale. BPC brokers not knowing the market and pricing your home wrong will COST YOU THE SELLER THOUSANDS. Not exposing your home online and pocketing the listing WILL COST YOU THE SELLER THOUSANDS.
  

This entry was posted on August 6, 2006 at 8:42 am and is filed under Finding the right agent when listing, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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