180 Relocation

”Should You Negotiate What You Pay in Real Estate Commissions?” ⭐️What would your answer be to this question?⭐️ Journalist Jon Gorey asked this when he interviewed me for the following #BostonGlobe article in 2020–long before most in the industry were aware of the 2019 lawsuits that are finally bringing major changes to the industry. In the article, he provides insight as to what the consumer NEEDS to know -- knowledge that will be even MORE CRITICAL once new changes to commissions take effect August 17. 🔔 #1: “You can try to negotiate [commissions], but you have to be mindful that it’s often not the agent’s decision" [Sonia Gilbukh, assistant professor of real estate at City University of New York]. Agents at smaller or more innovative brokerage models often only pay a flat fee per transaction which allows them the flexibility to tailor commissions based on services. However, more traditional brokerages often require agents to charge a set commission as these companies depend on a 30-50% commission split in order to remain in business. And then there are the 30-45% referral fees agents pay to Zillow, HomeLight, Dave Ramsey or #relocation companies. Consumers NEED to KNOW the questions to ask to learn what their agent is ACTUALLY paid. And with changes in August, this will be even more critical! 🔔 #2: It’s best to set terms from the outset in the buyer’s representation agreement. “You can limit it to a specific date, area, ZIP code, the homes an agent shows....There’s nothing worse than feeling stuck with an agent...so limiting the agreement to a day would give you an easy out if needed.’’ [Lindy Chapman, founder of 180 Relocation]. 🔔 #3: Sellers should interview at least three agents before listing their home. “Sellers are often shocked to receive very different listing prices, marketing strategies, and commission prices. Some agents might over-promise a high sales price to essentially 'buy' the listing while [other] agents might suggest a much lower listing price to ensure the home will sell with as little work as possible.’’ [Lindy Chapman] (We are currently helping 3 out- of-state sellers interview agents and the suggested listing price difference has been as much as 25%!) ⭐️Agree? Disagree? Would love to Connect!⭐️ #RealEstateCommissions #RelocationStrategy #ReloTalk #NotYourRealtor

Reading posts and the subsequent comments regarding NAR's settlement last week has been nothing short of entertaining. Do real estate agents truly believe the way the industry operates is good for consumers -- OR for the hard-working agents who serve them? The lawsuits would have been avoided if brokerages operated like a typical business intent on innovation to better serve buyers and sellers. If they were investing in technology to attract more customers, not to attract more agents. However once you realize the 'customers' are actually real estate agents and that the industry operates more like a multi-level marketing scheme, it begins to make a bit more sense. Otherwise, why else would there be 2.5 million licensed agents including 1.5M REALTORS (members of NAR), yet less than 5 million homes sold per year? And why hasn't this disparity in supply and demand driven down the overall cost of commissions. And why, even though you can pay a listing agent 1-2%, are most sellers still encouraged to pay 3% to Buyer Agents (or risk agents not showing the property)? And where is the money actually going as according to NAR the average agent makes less than $40k/year (before expenses and taxes!)? Change is challenging. But #Obstacles create #Opportunity, and we have been waiting 4 years for the industry's stronghold to be broken so we can finally do things differently without putting our clients at a disadvantage. Let's Go! #ReloTalk #RealEstateStrategies

One-Size-Does-Not-Fit-All. Listing a home for sale at a discounted commission may be just as costly, if not more, than listing at 6% of the sales price. But the opposite can be true as well. Real Estate Commissions should accurately reflect #VALUE and #Results. Which is why we are committed to doing things differently at #180Relocation by not only TAILORING commissions according to the #SERVICES delivered, but MATCHING Sellers to the RIGHT real estate brokerage and strategy for their unique needs. Contact us to Discover the Difference!