Beware of high administrative fees when paying 6%

Did you know that most high commission companies charge an administrative fee of anywhere from $195 to as high as $600 at closing? THIS is above and beyond the 5% or 6% commission one pays with these companies. It is a travesty that so many sellers blindly pay these fees on top of an excessive commission. These sellers either do not know any better or they are in a frame of mind of paying over $12,500 for the average priced home that they figure what's a few hundred more.

Our administrative fee is only $95 AND you pay much less to sell and have a truly skilled Realtor on your side.

Bottom line: a few hundred dollars on top of the thousands ONE SAVES BY USING HOMEOWNERS CONCEPT adds up to a substantial amount of money, especially in this economy. And even if one wants to be a big spender with money why not take the savings and make a big donation to your favorite charity. YOU WILL feel good rather than spending it on unnecessary commissions.

Why List With Us?

Perhaps the better question is "Why Wouldn't You List With Us?" ...

In the world of real estate today, there's a lot of confusion about what you get for the money you pay in commission. So many things have changed that even Realtors find it hard to explain what differentiates them from anyone else.

And then there's confusion over what really matters in the sale of a home! Do the big firms have an advantage? What matters more - the agent or the firm? What services truly impact a sale? What's fluff in the Realtor sales pitch?

If you analyze the way buyers go about finding and writing an offer on a property in this internet connected era, you will come away with the following important items. Buyers care about how your home is priced for its location, features and condition. An agent and the respective company should assist the seller to optimize the way the property presents itself to the market, pricing it correctly, maximizing exposure and use his or her experience during negotiations once a buyer(s) wants to buy. In other words a seller should be employing a Realtor that has considerable expertise, offers to cover all bases to expose the home and have strong negotiation skills and attention to detail. To that end, one will be hard pressed to come up with a better package than what Homeowners Concept offers. The savings in commissions is really a bonus.

It's all in the data

You see the average agent at Homeowners Concept sells 3 to 4 times more homes per year than the high commission agent and has been in real estate for 17 years vs only 4.5. Add to this the extensive marketing we provide via our unique magazine and high trafficked website. The differences are SUBSTANTIAL and our services stand above of the higher priced solutions! High commission agents persuade sellers to pay unnecessary commissions when in fact, on average, they deliver less than us.

Most people fail at selecting experienced agents.

Experience Matters When Selecting A Real Estate Agent – Just Not For Most People

Surveys show that only 57% of home buyers or sellers would use the last agent they worked with in the future. By service standards that is a very low percentage. Part of the problem is that people put very little thought on selecting an agent. As a result, many consumers are stuck with a mediocre agent.

Buying or selling a home is the single largest transaction that most consumers undertake. The process can be filled with uncertainty, emotion and pitfalls, so most buyers and sellers choose to work with a real estate agent to help them through the process. Selecting an agent is obviously an important step, and most consumers would agree that agent expertise and experience should weigh heavily in that choice. The shocking statistic is that the majority of home buyers and sellers select agents who have little or no experience closing real estate transactions.

Most Consumers Do Not Select Experienced Real Estate Agents

If one delves into the statistics one can see that the average agent sold a little over 6 properties in 2009 in metro Milwaukee. That is one every other month. Hardly enough to be an expert in this field. If one removes the number of sales from the top 200 agents (this includes 9 out of 10 of Homeowners Concept agents) then we are left with 2,500+ agents that only did 2-3 deals last year. Surprised by the data? Most people are. If there is one thing that can be said for our industry, it is that there are loads of hucksters and part-timers out there who fast talk their way into a couple of deals each year. Consumers can do better.

How Many Transactions is Too Many?

A small group of agents closed a very large number of transactions in 2009. A few agents closed more than 50 transactions last year. Certainly they have significant transaction experience, but realize that the only way this is physically possible is by working with a substantial team of folks or by sacrificing service. There are only so many hours in each work week and in the high commission world an agent spends considerable time trying to get listings. If you are planning to work with a very high volume agent, recognize that you will be interacting more with their team than with the agent who is getting credit for the transaction, or you may be sacrificing service levels because your agent is assisting so many customers. You will want to understand who is on the team, and when exactly you will get to work with the main agent, along with getting clarity on the service levels that they provide to you.

Striking a Balance

Consumers should require that their agents demonstrate results. Stick with full-time agents who do this for a living and are closing at least 2 to 3 deals per month, and you’ll be using an agent in the top 5% of all agents in Greater Milwaukee. Our own agents consistently rank in the top 5% of agents (and of course, the savings in commissions is a bonus). We are able to close more deals than a typical agent by focusing 100% of our work on selling homes and closing deals, not on trying to prospect for clients. At the same time, we are not ultra-high volume agents, to make sure that our customers do not have to sacrifice service to obtain our expertise. Furthermore and because of the way the Homeowners program works we have an extremely low turnover (unlike the high commission agencies). The strategy is to have only full time agents that have been in business a very long time and do at least 3 times as much sales per year as the average agent. To that we have succeeded and our clients are very thankful. Our record and A+ rating with BBB speaks for itself. Consumers should be more diligent when selecting their real estate agent and make sure that they select agents who have substantial experience getting deals done.

How quickly you sell depends largely on which seller profile you fit in.

Getting your home sold in the Greater Milwaukee area is not as tough as you might think despite the market (now dealing without the tax credit). The key is understanding a few things about yourself and how you approach the market that determines if and how quickly you sell.

What Home Buyers Want

Right now, there are roughly half the number of buyers in the market as we would normally see. As a general rule, they are conservative and concerned due to the state of the economy and tough lending requirements. They are looking for value. Ultimately, they are going to buy the home that is the best value on the day they make their purchase decision… Wouldn’t you if you were buying today?

Understanding The Housing Competition

Knowing that buyers are looking for value, another key factor if you want to sell a home is knowing who your true competition really is. For you to determine “good value,” you have to know what to compare with. This takes working with a real estate agent that understands the market better than the others. Choosing your initial market position is perhaps the most important factor when deciding to put your home on the market.

Your Motivation To Sell A Home.

So you know what buyers want and you understand your competition and how to value your home, the next and final step is to understand your current situation. Are you motivated enough to sell your home? Here’s a simple test:

Pick which of the below choices best describes you. Think seriously before you decide, as this will help you greatly.

1. The Casual Seller - The casual seller says things like “We are not in a hurry,” or “We don’t want to give it away.” You can expect this person to say “We will sell if we can get $X ….”
2. The Serious Seller - The serious seller says things like “I understand the market and I’m willing to sell my home for what I’m seeing out there.” This seller is ready to sell at “perceived market value” and they expect to price their home with the competition to get it sold.
3. The Very Serious Seller - The very serious seller must sell now. They are willing to create a perception of value and entice buyers to select their home before all others.

Who will sell their home in the next few months?

So, what kind of a seller are you?

If you answered the above question as honestly as you could, you need to know that the casual seller is not going to sell their home in today’s market. There are just way too many homes for sale and the casual sellers are doing themselves and the very serious sellers a dis-service by adding to the inventory.

The market will eventually recover and there will again be great times to sell, but today’s buyer pool is looking for value. Even the serious seller is most likely not going to sell their home. With over 11 months of supply in SE-WI plus new short sales and foreclosures entering the market, only the very serious sellers have the best chance of being successful over the next 12 months. Luckily with our very low commission of 1.5%, a seller listing with Homeowners Concept has quite a few thousands of dollars in savings to play with (As did idol Danny Gokey). A serious seller can take the savings and deduct it from the list price making their home much more attractive to buyers.

One of our agents gets featured in the Journal.

Jeanne Van Oss, Homeowners Concept, Wauwatosa
By Robert Warde

Posted: May 29, 2010

For 23 years Jeanne Van Oss worked as a commercial pilot for leading airlines and a corporation. During those flights she hung her hat where passengers boarding the plane could see it. Inside and visible to those passengers was a card that read “attitude is everything.”

It was that outgoing personality that caused several of her friends to advise her to go into real estate and within weeks after the Sept. 11 attacks, her seniority class at American Airlines was told it was going to be furloughed. Van Oss needed a job fast. She lived in Illinois at the time and got her license as soon as she could.

“I’ve always liked helping people. Even when I was at O’Hare, when I had some downtime, I would stand in the concourse and help people get to their gates. I just enjoyed doing it. In a way, I’m kind of doing that now with guiding my clients to their closing. I also enjoy the fact that each transaction is different and has its own situations and challenges,” Van Oss said.

In 2003, Van Oss wanted to live outside of the city. “I grew up in the country and I wanted to be in the country so we moved to Burlington in 2003,” she said.

Van Oss joined Homeowners Concept, a company that offers options ranging from limited to full service. “When I heard about Homeowners Concept, I joined them in 2009 because they have a full-service option. They do huge volume and I’m able to support my family. I’m real happy here,” she said.

Van Oss recommends referrals and doing some homework as the best way to find an agent. “Referrals are huge. Ask your family and friends for an introduction and if they don’t know anybody, then I would do a search and interview three or four different companies and look for that sense of reliability, trust, values and what they provide in a sense of history,” she said.

Van Oss has built success in the business, already meeting her 2010 sales goals and will have eight sales closing in June if all goes well.

In recalling her first listing in Wisconsin, Van Oss said it could have been the highest commission she earned, even though she enlisted the help of another broker in her office at the time because he had more experience selling commercial real estate. Ultimately, the owner of a $4 million hotel in the Wisconsin Dells opted not to sell, despite several offers.

“It was challenging learning all the ins and outs of commercial real estate and driving to the Dells to show the hotel. I think she was trying to see what people were willing to pay,” Van Oss said.

In her off time, she likes to plant wildflowers and work in her garden. “I also spend time with my children. I have two little ones and a teenager. I like to spend time with my husband and kids and catch my breath. We love to ski and bike and do things outdoors,” she said.

Van Oss also is a member of the Humane Society and works to create awareness of shaken baby syndrome. Her awareness has been heightened with the number of media reports about children who have fallen victim to being violently shaken. Someday she’d like to use her flying skills to make missionary trips to South Africa or South America.

Coldwell Banker's Buyer Bonus gimmick!

The government tax credit for home buyers has now expired for a little over 3 weeks. Coldwell Banker offices across the country have been promoting a 3-month national sales promotion called the Buyer Bonus Program open to all buyers. They claim that the Buyer Bonus “will allow participating Coldwell Banker home sellers to ‘essentially’ extend the tax credit for participating homebuyers.”

Sounds fantastic, doesn’t it? If I list my home for sale with a Coldwell Banker agent, I can magically extend the $8,000 credit to potential buyers. What’s the catch? The catch is that sellers participating in the promotion are giving 3% of the accepted offer price – up to $8,000 – as a credit at closing back to buyers who sign an offer before July 31st. This is not a promotion at all, rather it is a marketing ploy by Coldwell Banker to get their sellers to lower their proceeds by $8,000! Coldwell Banker agents offer no contributions in the process, other that advertising that their sellers are willing to concede $8,000 for offers before July 31.

Sellers have always been able to offer concessions to get their home sold, whether in the form of price reductions or contributions towards buyer closing costs. If you are a seller, there is nothing special about this promotion. These are pricing tools that have always been available to you and your agent. No matter who your agent is, if your home is not selling, you should have a conversation about your asking price, incentives you could offer to buyers and any other improvements that could be made to the property to attract more buyers. Many buyers already ask sellers to contribute toward their closing costs and this item is part of the negotiations.

So, this Buyer Bonus program is a pure gimmick as there is NO contribution by the Coldwell Banker agent, other than a promotion to get you to list your home with them and lower your price at the same time. There are a variety of brokerage options available today that WILL save sellers a substantial amount in real estate commissions which they can pass along to buyers to help accelerate the sales process. Listing with Homeowners Concept at the 1.5% or the 4.4% programs will save you money either way, while still providing outstanding marketing and customer service to get your home sold.

Great 5 & 7 year ARM rates one should consider!

Many buyers are not aware of the extremely low Adjustable Rate Mortgages available, specifically the 5 and 7 year. As of this writing one can lock in for a 7 year ARM for 3.75% rate. The 5 year is even better at 3.5%. These are conventional rates although FHA which offers lower downpayment and more flexible underwriting criteria is also offering a 3.625% 5 year ARM. The rates are quoted by Netcentral Mortgage (netcentralmorgage.com/414-258-7833) which is located in the same building as our central office in Wauwatosa.

In the conservative environment of Southeast Wisconsin most buyers refuse to even consider the ARMs. Yet, if one had been in an ARM for the last 25 years, they would have enjoyed tremendous savings over a fixed mortgage (and would not have to incur refinancing charges). As the rates adjusted lower the ARM would have adjusted lower and ARM rates are lower than 30 year rates.

Most buyers have been reluctant to purchase or refinance with an adjustable rate having this fear that rates will go up, yet if one looks at Japan the fixed mortgage rates are close to 2%. In the economic environment we are in, it is very conceivable that fixed rates can continue to move lower to the 3-4% range. Adjustments to the ARM rates at the end of 5 or 7 year anniversary would then translate into a new rate in the 2-3% range.

Seller w/Flat Fee Co. wondering why she's not selling.

A question was recently posed on Trulia a national real estate website. A seller was wondering whether there is a conspiracy among agents to not show or write offers on homes that are FSBO yet on MLS with a flat fee/limited service company. I am certain that there is no such conspiracy but for various reasons FSBOs using a flat fee company do have a very low chance of selling (some companies have dismal records of only 20-30% success rate).

There are a dozen or so small companies in Greater Milwaukee which will put a FSBO in MLS for a flat fee of usually $500 UPFRONT. Most of these outfits are doing just MLS data entry, and they could care less whether the home sells. These outfits are well known in the industry as: “list them and forget them”. Their listings are flagged in MLS as "Limited Service".

Obviously, being in the MLS is far from enough to get the property sold. There needs to be a strategy on how to best market the property and how to best present the home to the buyers. At Homeowners Concept we take a good bit of time explaining our strategy to home sellers on how we use our magazine and the internet (including the MLS) to get their home sold. Just being on the internet (and the MLS) is not enough in today’s very competitive real estate market.

In my opinion, she has chosen to go at it alone and is finding the going very lonely. She should hire an advocate to help her get her home sold (We even know the best real estate company in metro Milwaukee that will also save her thousands in commissions!). I am shocked that somebody who needs to sell a home does not understand how important having great help is in this market, especially when most of the time, we are less expensive than the flat fee route. Why do some Homesellers not “get it?”

Over the last few years, thousands of sellers have fallen victim to paying the hundreds of dollars upfront just to get in MLS, wasting months or years on the market and having to turn to another broker (ourselves included) to eventually sell.

Danny Gokey's home gets an Accepted Offer!

Within a few short weeks on the market, this very nice home in the far NW area of Milwaukee received an offer. After some lengthy negotiations, the American Idol star accepted the Offer. Needless to say, this makes not only the seller very happy but the Homeowners Concept family as well. You see, this is the second time in the last couple of years that we have had the opportunity to sell a home associated with an American Idol finalist. The last time it was Taylor Hicks girlfriend's home in Glendale.

So Danny does not have just a great voice, he's also a very smart guy because by using Homeowners Concept and paying only 1.5% commission he netted over $13,000 in savings over a 6% commission! Meanwhile he received the most in marketing the home and unparalleled expertise from staging the home to negotiations to a smooth closing (the agent for this home has been in business for 16 years and sells 4 times as many homes than the average 6% agent). As many of the tens of thousands of past sellers (26+ years in business!) have remarked: "it's a no brainer" using our service.