Tag: Sales

Why Choosing the Right Real Estate Broker Matters More Than Ever.
Education · Maximize Your Profit · Real Estate Sales · Sellers · Selling a home

Why Choosing the Right Real Estate Broker Matters More Than Ever.

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Why Choosing the Right Real Estate Broker Matters More Than Ever

The real estate landscape is evolving, and recent changes in agent compensation have added complexity to the home buying and selling process. If you’re thinking about selling your home, it’s crucial to select a real estate professional who will not only represent you but also navigate these changes effectively. That’s why choosing Dennis Rath Home Sellers is one of the best decisions you can make. Here’s why.

Understanding the Role of the Broker—It’s Not Just the Agent

Many people assume that real estate agents and brokers are the same, but they’re not. When you sign a real estate contract in Ohio, you’re not just dealing with an agent; you’re actually entering into an agreement with the primary broker of the company. This means that the broker holds the ultimate authority in your contract.

A vital question to ask is: Who is the broker, and where are they located? At some firms, the broker may be miles away in a different city, like Cleveland or Columbus, or even out of state, creating a disconnect between you and the person who holds the authority over your contract. At Dennis Rath Home Sellers, you’ll deal directly with me, Dennis Rath—the primary broker—ensuring personal, attentive service throughout the process.

Personalized Service and Unmatched Dedication

At Dennis Rath Home Sellers, you’re not just another listing on a board—you’re my top priority. Unlike large firms where homes can get lost in the shuffle, I focus all my energy and expertise on your unique needs. From the initial consultation to the final closing, I ensure your home gets the attention it deserves. My goal is to maximize its market potential and secure the best outcome for you.

Navigating New Compensation Rules with Expertise

The real estate industry has changed, especially regarding how agent compensation can be advertised and negotiated. While these changes offer more flexibility, they also introduce new complexities into transactions. With 30 years of experience, I’m well-equipped to guide you through these changes. I’ll help you keep costs low, protect your interests, and secure the best possible results.

What You Need to Know About Broker Dynamics

A recent study from the National Association of Realtors indicates that 72% of real estate agents primarily represent home buyers, and 1 in 4 agents may leave the industry in the next two years due to financial pressure. Large brokerages, in particular, are facing shrinking revenue as they manage the overhead of dozens of offices. These pressures are pushing some brokers toward dual agency, where the same broker represents both the buyer and seller—a situation that can create conflicts of interest.

At Dennis Rath Home Sellers, I avoid dual agency to ensure my sole focus is on representing you, the seller. My commitment is to your best interests, without any divided loyalties.

Modern Marketing Without Unnecessary Overhead

After spending 25 years with the Realogy Franchise system, I’ve learned that high overhead doesn’t always translate to better results for clients. Thanks to the internet, I can market your home on the same platforms used by large franchises—without the unnecessary expenses. My MLS agreements ensure your property appears on all the major real estate websites, giving you a competitive edge.

Instead of maintaining multiple offices, I efficiently cover all of northeastern Ohio from my office on Lorain Rd in Fairview Park. I also partner with experienced professionals, such as title companies and mortgage services, to provide you with the best services, including top-tier professional photography to showcase your home in its best light.

Now Is the Time to Act

As the real estate market continues to adapt, now is the perfect time to leverage the personalized service and market exposure that Dennis Rath Home Sellers offers. With me, you’ll have direct access to the person in charge, ensuring transparency and quick responses to your concerns.

Ready to get started? Call me today at 440-490-7284. Let’s navigate this changing landscape together and achieve the best outcome for your home sale.

The National Association of REALTORS Settlement
Education · Maximize Your Profit · Maximize Your Profit · Real Estate Sales · Sellers · Selling a home

The National Association of REALTORS Settlement

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I assume you have read headlines about the National Association of REALTORS® (NAR) agreement to end litigation in the Sitzer-Burnett lawsuit because it’s been all over the news.  If by chance you haven’t heard, let me give you some background what the lawsuit was about.

The Sitzer-Burnett is a class-action suit that was filed in Sept. of 2021 in federal court by a group of home sellers in the state of Missouri against the National Association of REALTORS (NAR), along with several other defendants including Anywhere, Berkshire Hathaway HomeServices, Keller Williams, and RE/MAX.

The plaintiff’s case stated real estate commission rates are too high, buyers’ representatives are paid too much, and NAR’s Code of Ethics and MLS Handbook, along with the corporate defendants’ practices of forced compensation have led to inflated commission rates for the sellers.  The jury in this case agreed with the plaintiffs.  As soon as the verdict came in, the lead attorney for the plaintiffs filed a nationwide lawsuit against the National Association of Realtors, Compass, eXp, Redfin, Howard Hanna Real Estate, United Real Estate, Douglas Elliman, and Weichert Realtors.  Instead of appealing the Sitzer-Burnett case and litigating all of the others, the NAR decided to consolidate the cases and proposed a settlement, and as I understand it, it is now up to the court to accept the settlements.

The issue at the heart of the lawsuits is why home sellers are paying commissions of brokers representing home buyers. This

issue is like an onion, as it has many layers, and the industry has done a poor job of informing our clients what the truth is and many agents in the industry do not understand it themselves well enough to articulate it.  I understand it completely because I have been selling real estate through the changes.

The compensation, whether it is a flat fee or a commission, is outlined in the contract between the client and the primary broker of the real estate company. Most home sellers or buyers never talk to the primary broker unless something goes wrong.  Agents are employed by the brokers, and in most cases may not deviate from the broker’s decisions regarding compensation.

Brokers inform real estate agents what they need to charge, and that fee is split between the broker and the agent.  All compensation is negotiable and has always been, nothing in this settlement changes that. 

The way it works now is that the real estate compensation is paid to the listing broker, and the listing broker pays the cooperating (buyer’s) broker.

The reason this practice is in effect now is because that was the way it was long before buyers’ agency was a law.  When I was first licensed in 1994, cooperating agents (agents who work with buyers) acted as subagents of the listing agent. After the Federal Trade Commission released a study showing that most buyers thought they were being represented, Ohio passed a law that required agents to disclose whom they represented.  Thus, the buyers’ agency was born.  Compensation did not change after the buyers’ agency because the mortgage laws were never updated and that is how we ended up with this antiquated compensation model.

That brings us up to today.  Today there is no easy way for a buyer to pay their agent fees outside of the way it has always been because mortgage rules cap the amount of fees that can get added to a loan, and with VA loans buyers are forbidden to pay any cost.  Lawmakers did this to ensure fees do not deplete borrower equity.

So, what has changed as a result of the settlement and how will it affect the way real estate is sold?  Good question.  No one knows all of the details yet, but here is what we do know; As of mid-July 2024, compensation will be de-coupled from the listing contract and no buyer’s agent compensation will be listed on the Multiple Listing Service.  This means that sellers will pay their broker and buyers will be responsible for paying their broker. 

The internet is full of people making predictions.  Max Besbris, an associate professor, and author wrote, “It will prompt one of the biggest transformations to the housing market since New Deal-era regulations were put in place.”  No disrespect to Mr. Besbris, but I don’t think you can compare the NAR lawsuit settlement to the time that followed the Great Depression, but I may be wrong.

This issue is like an onion, as it has many layers, and the industry has done a poor job of informing our clients what the truth is and many agents in the industry do not understand it themselves well enough to articulate it.  I understand it completely because I have been selling real estate through the changes.

The compensation, whether it is a flat fee or a commission, is outlined in the contract between the client and the primary broker of the real estate company. Most home sellers or buyers never talk to the primary broker unless something goes wrong.  Agents are employed by the brokers, and in most cases may not deviate from the broker’s decisions regarding compensation.

Brokers inform real estate agents what they need to charge, and that fee is split between the broker and the agent.  All compensation is negotiable and has always been, nothing in this settlement changes that. 

The way it works now is that the real estate compensation is paid to the listing broker, and the listing broker pays the cooperating (buyer’s) broker.

The reason this practice is in effect now is because that was the way it was long before buyers’ agency was a law.  When I was first licensed in 1994, cooperating agents (agents who work with buyers) acted as subagents of the listing agent. After the Federal Trade Commission released a study showing that most buyers thought they were being represented, Ohio passed a law that required agents to disclose whom they represented.  Thus, the buyers’ agency was born.  Compensation did not change after the buyers’ agency because the mortgage laws were never updated and that is how we ended up with this antiquated compensation model.

That brings us up to today.  Today there is no easy way for a buyer to pay their agent fees outside of the way it has always been because mortgage rules cap the amount of fees that can get added to a loan, and with VA loans buyers are forbidden to pay any cost.  Lawmakers did this to ensure fees do not deplete borrower equity.

So, what has changed as a result of the settlement and how will it affect the way real estate is sold?  Good question.  No one knows all of the details yet, but here is what we do know; As of mid-July 2024, compensation will be de-coupled from the listing contract and no buyer’s agent compensation will be listed on the Multiple Listing Service.  This means that sellers will pay their broker and buyers will be responsible for paying their broker. 

The internet is full of people making predictions.  Max Besbris, an associate professor, and author wrote, “It will prompt one of the biggest transformations to the housing market since New Deal-era regulations were put in place.”  No disrespect to Mr. Besbris, but I don’t think you can compare the NAR lawsuit settlement to the time that followed the Great Depression, but I may be wrong.

The upside is the cost of selling will come down in the long run once the mortgage rules are updated, allowing buyers to pay for a buyer’s agent or to be able to finance the cost. 

The downside has some significant issues as well with removing the compensation of any type from the MLS.  The biggest one I can see is how it will affect first-time home buyers.  First-time home buyers as a general rule rely more on agent services to help them through the sometimes complicated and always emotional process of buying a home.  A home is the biggest piece to their financial future.

Throughout my career, I’ve dealt with a lot of issues like this one.  The concept of sellers and buyers paying for their representation and removing it from the MLS is simple and understandable, but how the execution happens will depend on a wide range of human behavior.

Some people are predicting housing prices will decline along with commissions.  I don’t think that’s true because home prices are primarily determined by the supply and demand for housing units.  I can’t see how the cost of brokers’ fees will factor in.

I am very happy with the changes.  As you know I have been advocating for this for quite some time.  As a person who has made his living over the last 30 years in the real estate industry, I am glad to see more transparency in the transaction.

I developed my fee structure of giving sellers options more than 9 years ago.  Since then, I have been able to save sellers several thousand on their side of the transaction.  Because of the current compensation model, my hands have been tied to save money on the buyer’s side, this should go a long way to correct that. 

Thank you for your friendship and your referrals.

Dennis Rath

Unlock the Hidden Power of Real Estate Brokers – Your Home Sale Depends on It!
Education · Real Estate Sales · Sellers · Selling a home

Unlock the Hidden Power of Real Estate Brokers – Your Home Sale Depends on It!

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Opting for a real estate broker might provide you with safer assistance compared to working with a sales agent or team. Selling your home goes beyond being a transaction; it’s a voyage filled with both anticipation and uncertainty. Whether you’re new to selling or an experienced real estate pro, the journey toward a sale can be complicated and unpredictable. Among the decisions you’ll have to make one choice that stands out as crucial – is selecting the professional to guide you through this process.

Imagine this journey as an adventure, where your home’s the ship navigating through the ever-changing currents of the real estate market. Whom would you trust as your captain steering you towards a haven of success? Would you put your faith in a navigator who knows every intricacy of these waters? Would you entrust your vessel to a sailor hoping they’ll find their way?

In this blog post we delve into the importance of making the choice when it comes to selling your home. We’ll explore the distinction between a real estate agent and a principal broker shedding light on their roles and responsibilities.

As we navigate the intricacies of this decision you will come to realize the impact that your choice of a real estate professional can have. So, raise the anchor embark on this journey alongside us and uncover the key to a home sale guided by expertise.

Principal Broker

A principal broker is a real estate expert who has completed all the real estate courses along with educational requirements mandated by state laws. In Ohio a broker must successfully complete courses such as Ohio Real Estate Law (40 hours) Ohio Real Estate Principles & Practices (40 hours) Real Estate Appraisal (20 hours) Real Estate Finance (20 hours) a Financial Management course a Human Resources or Personnel Management course an Applied Business Economics course and two years of post secondary education or equivalent ninety quarter hours. They must also pass the brokers exam. Fulfill 36 hours of continuing education every two years.

The principal broker serves as the representative of the brokerage firm. Holds authority to enter into agency contracts with both home sellers and buyers. Additionally they are responsible for supervising real estate agents employed by the agency. The principal broker oversees transactions, between buyers and sellers while providing guidance to agents.

A principal broker also holds a trust or escrow account to ensure the handling of the money deposit and any funds owed to the brokerage firm. The principal broker is held to the standard of accountability and responsibility.

Sales Agent

In Ohio a real estate salesperson is a professional in the industry who has successfully completed all licensing real estate courses. These courses encompass Real Estate Principles and Practices (40 hours) Ohio Real Estate Law which covers rights, housing discrimination and desegregation issues (40 hours) Real Estate Appraisal (20 hours) Real Estate Finance (20 hours). Additionally, they must pass the real estate licensing exam. Sales agents are also required to complete 16 hours of continuing education every two years.

In Ohio real estate agents cannot work independently; they must be affiliated with a brokerage firm because they are not legally permitted to enter into agency contracts with home sellers or buyers. When you engage with a real estate agent you are entering into a contract with the broker while the agent acts as an intermediary. In Ohio any sales or purchase contract for estate is, between the principal and the broker.

What exactly constitutes a team?

According to a paper published by the Ohio Board of Realtors titled “Teams; Is Your Team Violating Ohio License Law?”. Copyrighted in August 2017 by Ohio REALTORS®, the license law, in Ohio defines a team as a group of two or more real estate licensees associated with the same brokerage. Additionally it can include licensed professionals such as administrative assistants and other experts in real estate related fields who advertise together. In order to be considered a team there must be two licensees who advertise together. It’s important to note that teams are not licensed entities recognized by the Ohio Division of Real Estate and Professional Licensing. Although the license law allows multiple licensees to work together and advertise under a team name each individual member of the team is still required to hold their agent or broker license. The concept of teams is quite common in this market, where agents form groups and conduct transactions under the name of their team leader. It’s worth mentioning that even if agents work as part of a team it does not relieve the broker from their obligations under Ohio license law; they are still responsible, for overseeing the activities of all affiliated licensees within their brokerage. This also includes individuals and other intermediaries who work as a team.)

In a nutshell deciding to sell your home is a step. You want the process to go smoothly, efficiently and securely. Opting for a real estate broker can make all the difference. Let’s delve into the reasons why selecting a broker’s your best bet.

1. Direct Communication; One of the advantages of working with a primary broker is that you communicate directly with the person you have signed an agreement with. It’s, like having a one on one conversation with the head. This direct line of communication ensures that your concerns are promptly heard and addressed.

2.. Expertise; Primary brokers typically possess knowledge and experience in the real estate industry. They have been in this field for quite some time which means they can effortlessly guide you through the intricate transactions. Their expertise proves invaluable when it comes to negotiations ensuring that you secure the deal.

3. Extensive Network; Primary brokers often boast a network of buyers and professionals within the industry. This means that more people who are genuinely interested in your property will be exposed to it. They can tap into their connections to find a match, for your home significantly increasing its chances of selling

4. Ensuring legal compliance is crucial, in real estate transactions as they involve a web of laws and regulations. Primary brokers shoulder the responsibility of ensuring that every aspect of the transaction aligns with Ohios real estate laws. This helps mitigate the risk of facing complications in the future safeguarding your interests. On the hand sellers without the guidance of a broker may find it challenging to ensure compliance with Ohios real estate laws.

One advantage of working with a broker’s increased flexibility in negotiating terms and conditions for the sale. It’s akin to having a line to the decision maker allowing you to tailor the deal according to your needs and preferences.

In contrast salespeople may possess experience and knowledge compared to brokers. Their limited expertise can potentially impact the level of service you receive. By choosing to work with a broker you can rest assured that you have access to top notch expertise.

To conclude, when selling your home and considering your equity at stake partnering with a real estate broker is highly recommended. You stand to benefit from their experience, network, legal expertise flexibility, in negotiations and direct communication channels.

FAQ 1; What qualities should I consider when choosing a real estate agent?

Answer; When selecting a real estate agent it is important to take into account their experience, knowledge of the market track record and client reviews. It is crucial to assess their expertise and reputation within the industry.

FAQ 2; Is commission split the factor in choosing a broker?

Answer; Although commission split is an aspect to consider it should not be the determining factor. Other factors such as presence, support system, training opportunities and overall culture within the brokerage also play a role in making your decision.

FAQ 3; How can I ensure that I am selecting the real estate brokerage?

Answer; Prior to joining a brokerage real estate agents should ask questions to evaluate whether it aligns with their needs. These questions may relate to commission structure, training programs, support provided by the brokerage team and the reputation of the brokerage, in the market.

FAQ 4; What distinguishes a real estate broker from an agent?

Answer;

A real estate broker possesses a level of qualification. Can work independently or oversee a brokerage firm. On the hand agents typically operate under the supervision of a broker. Do not have the authority to enter into agency contracts on their own.

FAQ 5; What inquiries should I make during an interview, with a real estate broker?

Answer; When interviewing a real estate broker it is essential to ask about the support they provide training programs available commission structure, company culture and the resources they offer to assist agents in achieving success. These asked questions (FAQs) and their corresponding answers are based on information obtained from search results. They aim to provide guidance, for individuals seeking to select the real estate agent or brokerage.

(*1) It’s important to note that real estate brokers are not attorneys and are not permitted to engage in practice.

Ohio Real Estate Broker & Author Dennis Rath Celebrates Winning Prestigious Acknowledgment for his Work
life and experience · Real Estate Sales · Sellers · Uncategorized

Ohio Real Estate Broker & Author Dennis Rath Celebrates Winning Prestigious Acknowledgment for his Work

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Dennis Rath a Real Estate Broker in Rocky River Ohio has been named for the second year in a row to the Cleveland Magazine Top Real Estate Agents list in the June 2019 issue.

July 9, 2019

Rocky River Ohio Real Estate broker Dennis Rath of Dennis Rath Home Sellers is well known for saving his clients’ money, without them sacrificing anything in service.  In 2019 this averaged $2,895 a client, a number that is a few steps beyond remarkable in the opinion of most with experience in the real estate world.  With over 25 years of experience, and handling each client individually rather than relying on a team, Rath has been able to maintain and replicate this high-level of success in a straight forward and transparent way.  In exciting news, this excellence in his field has been recognized for the second year in a row, with Rath being featured on the Cleveland Magazine Top Real Estate Agents List, which was published in the June 2019 issue.  He is also the author of two popular real estate related books, “Value-Driven Approach to Sell Real Estate: A Practical Guide to…” and “The Dennis Rath Home Sellers Professional Service Approach to Selling Real Estate”.

Rath commented, “I think my success has been my unique approach to selling real estate most agents are still using a one size fits all approach but charging a commission based on the sales price. So the marketing fee ends up totally disconnected from the actual work.”

“My clients have saved on average $2,895.00 and still received full service,” he continued clearly passionate about his work. “I use a sound approach developed over my 25 year career that’s straight forward and transparent. I don’t have a team so my clients never end up feeling like a hot potato, when a client calls I return the call. A number of my clients are not as comfortable with technology so I don’t force them into it. I still make house calls. I still believe in personal service.”

According to Rath, although technology has re-invented , transformed and revolutionized the selling of a home, the majority of real estate brokerages are still operating on a one size fits all commission-only business model, that has not changed since before the fax machine.  The sales culture that is fostered in some of the biggest real estate offices hearkens back to boiler room style high-pressure sales tactics using bait and switch gimmicks  like “I will sell your home in 61 days or buy it.”  Things that are clearly trickery and not based on delivering value to clients or win-win situations, where all involved benefit.

Rath continued, pointing out while house values along with the average commission for Real estate agents have risen over the last 10 years recent market conditions and modern technology, has actually created a situation where it takes less work and outgoing costs, to sell a home. The industry in turn has not added more value to justify the increase in fees. Client property value has gone up because of economic factors and improvements they have done themselves, not because of the real estate industry. And recognizing that Rath works hard to keep his fees at a reasonable level that recognizes these realities rather than trying to act out of greed and selfishness.

With the real estate industry reaching what may be a pivotal point, pressure is beginning to mount from all sides. Several outsiders have picked up on the perceived vulnerabilities like the Class action lawsuit Moerhl v National Association of Real estate agents (NAR), and the Department of Justice investigating antitrust issues. Forced change may be coming to the industry and it looks like the “commission only model”brokers will be hurt first. Fortunately, this won’t negatively impact the few like Dennis Rath Home Sellers who already realize a new era for real estate demands new thinking, which is exactly what he is doing.

Rath’s reviews reflect his positive approach to realty.

Linked In Recommendation    07/04/2019

My family recently worked with Dennis Rath to buy a home and sell a home on the West side of Cleveland. The experience was fantastic! We were able to buy a home for my mother with the minimum of muss and fuss. Dennis managed all the details flawlessly. My mother’s home sold in less than a week at above the listing price and closed on time and as scheduled. All the advice Dennis Gave us from staging, to repairs to the appropriate list price to which buyer to pick turned out to be accurate and wise. Throughout the entire process he was diligent, organized, calm and just incredibly competent. We could not be more satisfied.

For more information be sure to visit https://dennisrath.blog.

Thinking of selling your home visit: https://www.dennisrath.com/sellmine

Email Dennis@Dennisrath.com     Or just call (440) 600-9508

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Education · Real Estate Sales · Selling a home

4300 Butterfly Circle, Medina, OH 44256

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Welcome to your new home! A well maintained colonial, located in a newer quiet cul-de-sac neighborhood called Fox Village. This home has many upgrades; wood floors and recessed lighting to name just a few. The kitchen has counter space as far as the eye can see! You will love the quiet solitude that the deck provides, it’s just perfect for having coffee in the mornings, or as a place to decompress after a long day. The basement is partially finished and is being used as a workout area, and playroom. The location provides easy access to shopping, restaurants, highways, and parks.

Open Click Here

Does Teamwork Really Make The Dream Work?
Lessons Learned · Maximize Your Profit · Real Estate Sales · Sellers · Selling a home

Does Teamwork Really Make The Dream Work?

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Dennis Rath

Home Sellers Newsletter

I was reading an article about the people in California that lived in the area that was devastated last year by the wildfires. I was surprised to hear that many were in the process of rebuilding in the exact same area. The article stated some of the homes would not contain fire-resistant materials. After reading that my first thought was, “That’s insane! Why would they do that?!” Well, it turns out that the building codes are still a little week when it comes to what building material has to be used. Since the insurance companies don’t have to spend the money, they don’t, which leaves the extra cost up to the homeowner.  Sitting here in the western suburbs of Cleveland, far away from the entire situation, it’s easy to assume that the people are crazy for rebuilding without using the best fire resistant material in an area that has burned twice; once last year and 53 years ago. Any rational person can assume that odds are great it will burn again.

The people are not crazy, they are just being human. The thing that changed my mind was an interview with a fireman whose home was lost while he was out fighting the fire. He said he was rebuilding because this was his family’s home, this is what he knows, the neighbors are his friends and his daughter goes to school here. I can relate to his need to get back some sort of normalcy, that’s human nature and maybe he is too close to the situation to see the danger of it. Maybe he thinks he will move before the next fire hits, who knows? I know this is human nature because I heard this line many times before. I heard almost this exact thing when I was in school in the 1970’s and 80’s when people were being let go from the steel mills and automakers, being a little longer in the tooth, I can remember them on the nightly news saying, “Now what do I do? Working here is all I know.”

I also know firsthand about the need to get back some normalcy after being devastated I felt that way during and after the Great Recession. I was financially wiped out, I had lost it all. With blinders on to everything that had changed, I set out going right down the same path. My goal was to get back some sort of financial normalcy in a hurry for me and my family, unaware of what was going on.

Luckily for me, I took the job at the hospital for health insurance. Although I did not feel lucky at the time, the job was clearly a blessing. I worked second shift cleaning operating rooms, and I was alone most of the time. Being alone allowed me some time to think and get some distance from my problems. During this time I began to clearly see that everything had changed; lending was very tight, the inventory of good homes was low, and because of the glut of foreclosures, the pricing was artificially low.

It was at this time the industry really started to change; Realtor.com and a little company called Zillow.com were getting legs. Before this a real estate broker performed a personal service, but with the arrival of technology came the Agent Team and the once personal service was now being handled more like an assembly line. With the growth of teams came the depersonalizing of service. Clients were no longer people with a name and a story, they were now just a lead; a phone number and an email in a database. Teams began to hire “inside sales agents” and set up big calling centers, here locally and in the offshore places like the Philippines. The only job of the ISA is to make hundreds of calls every day with the goal of finding actionable leads to hand off to the team’s leaders. You may recall a story on the news about a homeowner that received an estimated 75 to 100 calls in just a 12-hour period, that would be the inside sales agents on a robo-dialer.

It was during that time I witnessed a lot of behavior that was nothing short of disgusting. The market was full of short sales, that is people selling for less than they owed on a home, it was common for the bank to short the commission at the last minute, to make up the difference. Because it took months of work to get a deal closed, it became commonplace to charge the buyer a short sale fee, however, some of the mega brokers and teams in the area started charging the seller a fee as well as the buyer. The seller would pay it because a short sale on a credit report is way better than a foreclosure. How they slept at night charging an upfront fee to an already desperate seller who is losing a home is unconscionable to me. The Mega brokers and teams justified it by saying it went to overhead.  

 I don’t remember the exact day I made the decision to go in the opposite direction, but seeing the behavior of my peers did not sit well with the lesson that my mom and dad taught me when I was a kid; Treat Others As You Would Want To Be Treated. When I went through the “Great Recession” soon after my partner Jim died, Parkview Federal called the company’s loans and I was forced to sell all of our properties short. So I know firsthand the desperation that those sellers felt. Back when this was going on about 60% of my entire business were short sales. One day a very close friend/peer asked me if I was charging my sellers an extra fee?  When I told him no, he told me that I was leaving a lot of money on the table. I said that’s the seller’s money, not mine! That conversation really opened my eyes. It seems as though we went from an industry that was client-centric to broker focused in a matter of just a few months.

Having the forced time away from the business that working in the hospital gave me, I had a chance to disconnect from my point of view. I identified the behavior and the direction the industry was going. The agents and the brokers looked like one of those TV documentaries of life on the African Plains, where one of the gazelles sees a lion and they all begin to just run staying together in a pack. I am lucky because had I not had my point of view, I may have been in the pack myself. I think the entire industry was running to and fro looking for financial normalcy. The brokers and teams have very large overheads and when you take away financial security, that causes a sort of desperation. The job at the hospital also kept me from going to work on a team. Back then I was being heavily recruited by a large team, on paper the opportunity looked very attractive and I almost made the jump. I was going to make the call on Monday, but that weekend was my weekend to work at the hospital. All evening on Saturday and Sunday as I cleaned the ORs I kept turning the idea over in my head. My gut was telling not to do it. What did not sit right with me was on that team I would just basically go on appointments and prospect “Leads”.  I was not going to be involved in any other aspects of the transactions, even for my own past clients. At that point, I had been in real estate for 12 years and I had a large number of them. I did not want them, or their referrals being passed around from teammate to teammate like a hot potato.

The team model is a very lucrative way to run a business as far as the broker or the team leaders are concerned, but I think that model could hurt a client. Here is a prime example of why I think this way; Let’s say the seller wants to counter a buyer $10,000.00 for the purchase. The average commission is 6%, so for our example it’s $600.00. The $600.00 is first split with the company, now they have about $420.00, then next it’s split with the team leader, after they subtract expenses the agent ends up with between $150.00 and $210.00.  If the offer falls apart the agent makes nothing. You have to remember that the average agent sells about 8 homes a year. With the team model, the client is being passed around from person to person,  removing the personal liability of any one agent and opening up a very good possibility of hurting the client financially, because the agents on the team are only looking out for their own wallets.

Every team will try selling you by saying no one agent can do all that needs to be done. That’s true, but no agent has ever done it all, we have always had help from title companies, lenders, and home inspectors. I like that if one of my client’s needs anything, before, during, or after the sale of their home, they only have to make one call – to me! I remind agents all of the time; Sellers only sell one home, if they lose equity because of the fault of the agent, it’s gone, and gone forever. Just this week realtor relayed to me how frustrating it was doing any deals with a particular team in the area because every time he calls, he talks to a different person and no one has any idea what is going on with the transaction. Everyone seems to think someone else has a handle on the situation, but in reality, no one does.  The right hand doesn’t know what the left hand is doing. How that is a client based model?

Like I said about the hospital, I did not like the job, but it did give me the distance to see clearly. I don’t blame all of the mega brokers and teams; they do have a lot of overhead, and keeping them afloat and staffed costs real money. I would bet it’s a fortune just to keep the lights on.  When you talk to a teammate, it’s almost as if they have a false sense of security just being part of the pack.  The whole industry seems to be teaming up, and I am reminded of something Earl Nightingale said years ago; “Look at what the majority of people are doing, and do the exact opposite, and you’ll probably never go wrong for as long as you live.”

See you next month

Dennis

Past Clients Reviews from Zillow.com and Facebook.com

When I needed to move my mother in with me but my home wasn’t large enough, of course Dennis was the ONLY realtor I considered. He listed and sold both our homes while looking for a new purchase. He sold mom’s rental property for well over list price on day one…. and my house within the first week for asking price. And that was no small feat considering the neighborhood.

Of course, Dennis did everything in his power to get us into our perfect home and we couldn’t be happier.

Dennis was my realtor on two other occasions over the years and I would absolutely recommend him to all my friends and family.

Dennis made selling my boyfriend’s house quick and painless. Literally quick! And sold it for way beyond our asking price! There’s NO ONE else I would go to when it comes time to selling my home and buying a new one.

Dennis is the man for the job if you are buying or selling property!!! I have used Dennis 4 times in the last 10 years. Twice buying and selling a house. And two purchases of commercial property. This is tricky business and Dennis is the man with the answers and creative ideas. He also has financing ideas you may not have thought of. Dennis is my miracle man and would not want to be without him to navigate the local market. Dennis will get you the best deal possible no matter if you are a buyer or a seller. I plan on purchasing more property in the future and Dennis will definitely be there with me. Dennis is there for you from start to finish. Goes above and beyond your expectations…….He has done this for me……and I know he will for you. Dennis is the man for the job!!! CALL HIM…….YOU WILL BE GLAD YOU DID!!!