Not all Realtors are the same.

Ever taken a ride in a taxi cab?  You stand alone, wave down someone you don't really know, jump in and pray the driver knows where your destination is. When you arrive, hopefully on time, the driver turns to you, collects your money and drives off. Chances are, you'll never see the same driver again. This is the way many real estate salespeople work.

We promise to make every effort in giving you a limousine service experience. Give it some thought. When you ride in a limousine, you have the confidence the driver knows your destination. You sit back feeling more assured that you won't be wandering down alleys and unknown streets trying to find your destination. There is a "calmness" and feeling of security and confidence. Then, when you arrive, the driver opens your door with courtesy, gathers your luggage, sees you safely to your doorstep and expresses appreciation. And, surprisingly, the fare paid is little more than the taxi cab.

An Upfront Conversation About Agent Commissions and Realtor Fees

There is a growing misunderstanding that selling a house in today's "sellers market" requires minimal effort. As a result, you're seeing a rapid increase of "discount brokers" ... agents that promise to help you sell your home and "save you thousands of dollars".

The primary strategy for these agents is to suggest charging a nominal fee for listing your home in a local Multiple Listing Service (MLS) and posting a “For Sale” sign with flyers in your front yard. In your effort to save money, YOU may be asked to produce a flyer, conduct open houses, be available for propect showings, and even negotiate the transaction. Then, if you find a buyer, you may be asked to pay additional fees to have assistance in managing the escrow, the inspections and being sure that the buyer is performing to the terms of the contract.

Regrettably, there are nearly 2 legal actions taken for every 100 homes sold in California with judgments costing into six figures. Representing yourself in the negotiations and management of your transaction is comparable to acting as your own defense attorney, ("only a foolish client would represent himself in a court of law").

Here's why you should discount the discount brokers:

Under the guidelines of the California Department of Real Estate, California Association of Realtors and RE/MAX GOLD there are more than 52 statutory forms and disclosures required for the completion of each transaction. This leads many people to ask, “Is all that paperwork really necessary?”

As a licensed Realtor, our fiduciary responsibility requires that we do everything possible to represent your best interest exclusively, to manage your entire transaction and to avoid difficulties that can lead to misunderstanding, misrepresentation or litigation. Knowing this, now ask yourself if the minimal paperwork suggested by some is just an effort to save time, avoid the need to carefully guide you through the process, or because they themselves may not have the same concern to protect you?

Selecting your broker/agent is likely the most important financial decision you’ll ever make. When you list your home for sale, you agree to pay the listing broker for services to bring a “willing, able and qualified” buyer. These service fees are negotiable between you and the licensed broker. The phrase, “you get what you pay for”, cannot be overstated. Be careful to ask important questions because a Listing Agreement is a legal contract that can obligate you for a lengthy period of time with substantial financial implications and responsibilities. Before you immediately respond the “lowest commission” sales pitch:

1. Ask yourself, “Am I looking for the lowest commission structure or the highest net proceeds from my sale?”  The perceived savings of just 1% from the sales commission could be just a fraction of the cost you might ultimately pay for not having the full resources of a qualified agent. Cost associated with title and escrow fees, inspections and repairs, and seller paid incentives like home warrantees add up to thousands of dollars and easily exceed the 1% or even 2% you thought you would save.
   
   
   
2. You’ve seen homes go to market and sell in one day. You’ve also seen homes go to market and languish before the first offer is received. The marketing strategy involved in selling your home has a direct correlation to a successful and smooth transaction in the shortest possible time. Is the agent interested in just getting the listing or acting to safeguard your best interest?
   
   
   
3. Re/Max Gold is “Full Service Broker”  exclusively. We do not offer “price lists”. You will never find additional costs charged for services like the MLS listing, brochures, marketing materials, advertising placement, statutory forms and most importantly, experienced consultation through price negotiation and escrow settlement which are oftentimes excluded from “online” or “discount” broker services.
   
   
   
4. High visibility is a key to selling your home. Every company will tell you they have “local marketing expertise”. Be sure they back up what they say by showing you true-to-life examples? Do they have a network of more than 1,700 agents in the Sacramento region, 7,000 in the Bay Area and 17,284 sales associates in 391 offices throughout California to extend the power of your marketing efforts?
   
   
   
5. We know today that more than 80% of home buyers begin their search using the Internet. By choosing to work with Re/Max Gold, your home will be featured in multiple websites, including REATLTOR.com, Re/max .com, Re/Max Gold.com and Shellmarkhomes.com to dramatically increase exposure at the local, regional and even national level. Ask anyone who understands the Internet, they will tell you presence alone is not enough … it’s how you motivate people to view your page.

As with any profession, you’ll find a great deal of diversity between those who are “full time” practitioners and “part time” representatives. Gratification in this business comes not from “liking people”, or even “having the freedom of time”. It is about helping people make smart choices that impact their future financial security. Did you know that most people spend less time considering who to select for representing their most important financial transaction than they do in planning a vacation!

Some people ask me, “What Are You Worth?”

… others ask, “Why should I pay you that much money?”

Like you, I have a family to protect, a mortgage to pay, and monthly expenses associated with day-to-day living. As a licensed agent for Re/Max Gold, I am an “independent contractor”, which means that I pay for all expenses incurred to operate my business (everything from insurance to phones to gasoline) and maintain professional associations such as the National Association of Realtors, the California Association of Realtors and the Placer County Association of Realtors. I value my time and I am paid well for my services because I have earned a reputation as representing my clients fairly by placing their interests ahead of my own.

Below, you’ll find a summary the activities involved by acting as your listing agent with a relative expense based on $75 per hour. Usually, the time required between first introduction and close of escrow varies from 40-60 days for homes priced below $850,000.

The math here is all well and good. However, it fails to highlight the risks of my position:

First - our income is subject to completion of the transaction.  am not paid a nominal wage or as work progresses like a doctor, lawyer or plumber.

Second - not all homes sell. If a home is priced improperly or its condition not acceptable in the market, or if the parties in negotiation fail to fulfill their individual obligations, the transaction will not close escrow. Additionally, if the home seller has a change in plans, they may choose to withdraw the listing. In either case, regardless of the effort, duration of time or expenses paid, we am not compensated.

Third - We don't get all the money! The fees you pay are divided with the agent and broker who bring a qualified offer. Keep in mind, the buyer's agent may spend nearly as much time as Iwe do in representing their buyer; they deserve reasonable compensation. When you ask me to reduce my professional fee for listing your home from 6% to 5%, you are also reducing the incentive for the buyer's agent not by 1%, but by 17% (that's because 5% is actually 83% of 6%. It's similar to asking someone to work at only 83% of their potential.

Fourth -  Keller Williams Realty retains a portion of the fee paid to support administration costs including legal services, costs of operation and training to ensure that we are current on local, regional and statewide contract and legal issues.

Fifth - Ongoing monthly expenses for professional association dues, business and liability insurance, real-time access to the MLS, vehicle costs, technology costs and improvements and all marketing costs, including the advertising and promotion of your listing are paid by us, not Keller Williams Realty