Palm Springs
Desert Area Homes, Condos & Real Estate
In a cash sale
transaction, as well as a no-equity transaction, there are advantages to working
with an Investor as opposed to a Realtor. And with us you can share in the
profits!
Investor
vs. Realtor
There are two alternatives to using a
licensed agent or Realtor:
1. For Sale By Owner.
For this we recommend that you go to www.sellersrealtyservices.com. If you want
to sell By Owner, we can help!
2.
For Sale By Investor (aka Dealer):
This is where you avoid paying both the Selling and Listing commission and stand
to get a higher net price than with a Realtor.
If you are a bottom line Seller and want a
guaranteed price, faster sale, and fewer disappointments, an Investor may be
what you need. Investors don't
work on commission. They have no fiduciary obligation or loyalty to either you
or the buyer. They are a principal in the transaction and work to make a profit.
Real estate Investors buy and sell real estate,
often in a short period of time. They are better trained at creative marketing
and are more specialized in pricing and creative financing than are Realtors.
When you work with
an Investor, you tell the Investor the price you
want, and s/he keeps any profit over the agreed price. By contrast, when you
sell using a Realtor, you will owe the same commission rate to the Realtor
whether your house sells for more or less than the listing price. And
unfortunately, a Realtor may be motivated to encourage you to accept a lower
than achievable price just so s/he can get paid faster.
Sure, a Realtor will earn less with a lower sale
price, but based on a 6% commission on a $100,000 property, each $10,000
discount means $10,000 less to the seller, but only $600 less in commission to
the Realtor.
So there is a big difference. The Realtor gets
paid even if the eventual price is less than the listing price. But, if the
Investor fails to make a profit over the agreed price, s/he gets nothing.
The differences between Investor and Realtor can
be critical to the outcome when it comes to selling real estate. Here is why.
1. Real estate Investors actively seek out the
buyers, whereas traditional agents (Realtors) list homes on the MLS and then
wait for other Realtors to bring buyers. In other words, your Realtor is
generally marketing to other Realtors, not directly to buyers.
2. A real estate Investor has full control over his
or her selling objectives, since s/he can make instant decisions to meet the
needs, wants, and desires of buyers. This is because Investors are principals in
every transaction. They buy and sell for themselves.
3. A Realtor, on the other hand, is bound by the
rules of agency and must wait for instructions from his client (the Seller)
before initiating any creative marketing, financing, pricing, or making any
decisions to respond to the marketplace.
The rules of agency can have a huge impact on the
marketing of a house. Let’s explore a little.
As of Jan. 1, 2003, Realtors are not allowed to
engage in multiple offer situations, without the Seller’s express (written)
permission. In fact, in most states, licensed agents are prohibited from driving
up sale prices through multiple offers or auctioning without the proper
certification, education, auctioneer licenses, and a professional service bond.
Simply put, if a Seller wants to drive up sale
prices by means of an auction, round robin, or multiple offers, he must do it
himself or through a licensed auctioneer. NOT a Realtor.
So by law, real estate brokers and their agents
cannot carry out or initiate aggressive selling activities without proper
instructions from their clients.
This is a huge irony when you consider that most
Sellers hire brokers and agents under the assumption that licensed professionals
know what is required and can and will do all the work for them!
As surprising as it may sound, Realtors cannot even
advertise properties in the Multiple Listing Service without written permission
from Sellers, let alone take on other responsibilities.
This is a problem within a problem since most
Sellers do not know what or how to instruct their agents.
National real estate franchises want consumers to
think that they can make decisions for them. However, legally they can't. And
not only is it illegal, but most agents are not qualified or trained to provide
such services.
So what makes us really different?
Two things: 1)
There is no risk to you; and 2) You will share in the profit.
- No
risk to you: This is
because we won’t tie up your property. What we use instead is a
non-exclusive, cancelable option agreement. This gives us sufficient
interest in the property to list it ourselves and then market it to buyers
utilizing techniques that, for the reasons we have mentioned, are not open
to use by agents. All we need is the ability to show your property.
On the other hand, because it is a non-exclusive option, it still allows you
to list the property with a Realtor, or sell By Owner. The only thing we
recommend is that in any listing agreement you name us as an excluded party,
so you don’t end up paying a commission on your sale to us!
Contrast this with an agent who wants to tie up your property in a 6-month
exclusive right to sell listing! And how rich is that, considering the same
agent pitched you that s/he could get you top dollar in no time flat!
- You
will share the profit:
Obviously, we have to see the potential for profit in the first place.
Otherwise there is no reason for us to put in the time money and effort
necessary to get your property sold.
However, if there is any additional profit in the transaction, after we have
made an agreed basic profit, we will split it with you. There is no downside
to you. Why? Because we are putting our direct marketing know-how to work
and striving for top dollar on the sale of your property. And if we do
better than anticipated, we will share our good fortune with you.
We hope we have
shown you the benefit of doing business with an Investor. Please contact us with
your questions.
What Do We Do Now?
Contact us:
You can contact me right away on (760) 329-3650. Or via email at tony@deserthomebuyer.com,
or through our web site www.deserthomebuyer.com
We have given you a lot to think about. But the bottom line is that we can
help you sell your house fast! Contact us. You have everything to
gain and nothing to lose!
Sellers Select Realty Services
23225 Tamyram Rd
Sky Valley
CA 92241
Tel: 760-329-3650
Fax:760-329-1265
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