Realty World - Corral Hollow Real Estate » buyer http://realtyworldchre.com "Educate, Enlighten & Give Direction" Thu, 02 Sep 2010 00:11:00 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Real Estate Commission – Who Pays For It? http://evabradleyrealtor.com/2010/04/04/real-estate-commission-who-pays-for-it/ http://evabradleyrealtor.com/2010/04/04/real-estate-commission-who-pays-for-it/#comments Sun, 04 Apr 2010 23:01:00 +0000 Eva Bradley http://realtyworldchre.com/2010/04/04/real-estate-commission-%e2%80%93-who-pays-for-it/ Listing Commissions
Real estate brokers normally charge a commission for listing and selling your home. The rate varies, both by region and according to service level. In most areas the commission is calculated as a percentage of the sales price and rates of up to 7% are not uncommon.  Your listing contract will specify both the amount of the commission and the timing for when it will be paid.  Like everything else in real estate, commissions are negotiable.
Discount commissions
It wasn’t to long ago that commissions below the “going rate” for an area were all but unheard of.  These days though, there are many brokers and agents willing to list your home for considerably less than the 7% that might be typical for the area.  You need to be aware though, that lower commissions are nearly always tied to lower levels of service.  Most agents willing to list your home for a bargain commission rate aren’t going to do any advertising or marketing of your home.  They will probably just list it with the local MLS and put a sign in your yard, and that’s about it.  Meanwhile, a full service, full rate agent will probably spend considerable time and money to advertise and market your home – particularly to other agents in the area.  So, when considering a low commission, be sure you know exactly what you’ll be getting, and what you’ll be giving up.
Often, lower commissions will be part of a package deal where you agree to use a particular mortgage broker or you agree to buy your next home through the same agent that sells your present one.  There are some good bargains to be had with these package deals.  But again, it pays to examine the details closely, and make sure the whole package fits your needs.
Paying commissions
It’s important to understand how commissions are earned, and when they are paid.  Your specific listing agreement will spell out the details.  In general, a broker is considered to have held up his end of the bargain when he brings you a “ready, willing and able” buyer.  If the broker finds such a buyer, and you change your mind and back out of the deal at the last minute, the broker is probably going to expect you to pay the commission anyway, since he did his job.
Buyers Commission:  Buyers do not have to pay a commission when purchasing a home! …unless the buyer hires an agent to find a suitable home and is willing to pay for the agent’s work and time. In this senario there should be a specific, written contract to  make sure both parties agree and understand the terms.
In general when a home has been entered on the local Multiple Listing Service (MLS) for sale, the listing agent points out how the commission will be shared in case another agent brings in a willing and able buyer.  Common practice is that the listing agent and the buyer’s agent share the total commission in a 50/50 split.
 

]]> http://evabradleyrealtor.com/2010/04/04/real-estate-commission-who-pays-for-it/feed/ 1 Real Estate Market Conditions in Tracy, CA -January 2010 http://evabradleyrealtor.com/2010/02/03/real-etstate-market-conditions-in-tracy-ca-january-2010/ http://evabradleyrealtor.com/2010/02/03/real-etstate-market-conditions-in-tracy-ca-january-2010/#comments Thu, 04 Feb 2010 04:08:00 +0000 Eva Bradley http://realtyworldchre.com/2010/02/03/real-estate-market-conditions-in-tracy-ca-january-2010/ The sales details for the first month of 2010 are showing a slow down in Tracy’s real estate market, which is typical for this time of the year.  Tracy’s inventory is still low; as of today we have 207 homes actively listed on the Multiple Listing Service for Tracy and surrounding country areas. The most important factor in purchasing a home is obtaining a loan. Government loans (FHA) are changing rules again; raising the amount of mortgage insurance premiums and raising the minimum down payment back up to 5% of the purchase price. On the other hand the tax credit is still available for qualified home buyers and California governor Arnold Schwarzenegger is about to pass another incentive for Californians; a $10,000 tax credit for new and resale home purchases. If it passes, it will become effective hopefully by the end of this month….
Following are the statistics for the month of January, 2010: 

Actively listed properties: 207

             Almost the same as it was in December 2009 (208) 

Homes that went “Pending Sale” for the last week of January:  34

             This is just a bit lower than it was for the same period in December (27)

Number of homes “Sold” in the month of December: 92

              This is a significant drop compared to the previous month when
              the number of sold home was 148 

The Average Days on the market of the Sold Properties: 46

             In December last year this number was 62.  

Average Listing Price: $296,75 
Average Sale Price: $244,573

 The charts below reflecting these numbers as well:
 
If you would like to have detailed statistics for other areas of the Central Valley, please feel free to call or email me – I would be glad to provide it for you.
 

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