Are you really getting what they
promise?
I have always been amazed at the real estate gimmicks that lure prospective
Buyers and
Sellers into the real estate services selection process. It seems as
if some companies feel
the need to offer "a real deal" to get potential Buyers
and Sellers to utilize their services.
You should ask yourself, "Do true
professionals need gimmicks to attract business?" Maybe
your cardiac care
physician offers a "free cruise" to one lucky bypass patient each year.
Stan McLaughlin
"A professional realtor your family can trust and depend on"
Maybe
you deal with an attorney who will handle your next divorce for half price, if
you pay
full price for the first one. Does your accountant guarantee to pay your
taxes if they aren't
finished by April 15th?
In the real estate industry, it has been common place to offer coupons for a
"Free Market Analysis" to determine the value of your home. Every market
analysis is free - you don't need a coupon! Actually it is against the law for a
real estate agent to charge a fee for a market analysis that merely offers an
approximate value of your home in the current marketplace. So what happens if
you don't have the coupon. Nothing! A consumer only needs to pay for a certified
real estate appraisal that is completed by a qualified real estate appraiser,
which most real estate agents are not! A market analysis has limited use and
cannot be sold, so why the coupon?
How about the offer which guarantees to buy your home if it doesn't sell? Before
you get too excited over that offer, you should ask for the "rest of the story"!
Rarely will a real estate company who offers these deals pay the Seller the
"asking price" for the home if it doesn't sell. A formula is utilized to
determine the "buy-out price", often a price that is less than appealing to the
Seller. Any real estate broker will buy your home for the right price - their
price! If you are listing your home with the dream of this guarantee, get the
actual bottom line price on paper before you sign the listing paperwork.
Many brokers refuse to play the "guaranteed buy-out game" because they can't
win. If a broker buys a home and subsequently sells that home and makes a
profit, the original Seller thinks they have been swindled out of the profit
that broker made for taking a financial risk. If the broker doesn't sell the
home for a long period of time, loses money and takes a financial beating, then
the broker is a fool for having gotten into the transaction in the first place.
Most brokers I know are in business to make money without destroying their
reputation. Guaranteed buy-outs almost always produce a loser on one end.
Another great promotion is the "work with me and have a chance to win"
promotion. In this case, every Buyer and Seller has their name put into a
drawing for some grand cash prize for simply utilizing that company's real
estate services. So what are your real mathematical chances of winning? I guess
you'll need to read the fine print to learn the odds, if there is any fine print
to read. Hey, why don't you have a deal with a real estate agent to buy you a
Power Ball ticket for every week that your home is on the market. If you believe
you are lucky, you might as well win big!
Actually, that Power Ball gimmick isn't really legal either! The real estate
commission prohibits soliciting business by offering money, goods or services in
exchange for real estate business. That doesn't stop some people from offering
to buy meals at the restaurant of your choice if you choose them. It is one
thing to buy a meal for a satisfied and valued client, and it is another thing
to get a valued client because they want a free meal. If you aren't sure if the
business incentive you are considering is legal, call the Real Estate
Commission to get the correct answer.
Some brokers and agents offer "volume discounts". These types of promotions
usually involve one side of the transaction being discounted. This is legal and
widely practiced. Because all real estate commission fees are negotiable, it is
possible for a Seller to pay a full commission for selling, then pay a reduced
commission for buying a home through the same agent. Some companies and agents
will refuse this type of arrangement, while others promote the practice. It's
all part of the shopping and negotiating process when selecting a real estate
agency and agent. The question to ask yourself is what services will be cut to
compensate for the discount you are receiving. Nothing is ever free. Money and
services in a professional business don't simply disappear, they are either
displaced or misplaced!
A new twist on this practice is the offer to sell the home that you are
purchasing for a discount commission fee if you sell this same home in the next
two years. If you are buying a home that you believe you will need to sell in
the next two years, don't buy the home! You'd be insane! The closing costs to
purchase a home, then the added closing costs to sell the home, plus more
closing costs to buy another home add up to more money than you could ever hope
to make in equity growth. Consider renting a home or buying an investment
property. Talk to an experienced broker. You have other alternatives!
A local real estate broker with an excellent reputation for professional
services, innovative tools and technology, state-of-the-art training for their
agents and consumers, plus a track record for success isn't going to be playing
games to get your business. Maybe they don't advertise themselves on national
television stations or during halftime at the Super Bowl. Why? Because they
spend their money on you, the consumer. You are paying them to market your home
or find you a home, not promote themselves!
We are in the business of marketing homes for Sellers and finding homes for
Buyers. We spend our money to constantly improve our web site at
www.century21stan.com, a site that we will compare to any real estate
company anywhere. We have more than 30,000 hits per month on our web site. We
have cable advertising programs and video promotions that are second to none in
our market area. We invest heavily in our customers and clients, and it pays!
Our highly trained and dedicated staff is one of our greatest assets. We have
the latest computer technology, yet we have not abandoned the art of
face-to-face meetings and friendly follow-up phone calls. We communicate with
you on a level that is most comfortable to you. We are on the leading edge of
innovation in our industry with programs like our
"RealHelp Program"
that allows property owner to advertise their property to potential Buyers and
Renters on
the Worldwide Web.
Professional services and the success of a company are not defined by the
gimmicks that attract consumers who have failed to read the fine print or who
don't understand the true theory of some of these too good to be true offers. If
you are thinking of buying or selling, give us a call. All real estate
agencies were not created equal. Don't be fooled by gimmicks and promotions that
are more sizzle than steak!
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