Buyers' Slice Realty

Let’s start with the easy part:  the seller typically pays a listing agent a total commission, and the listing agent typically turns around and offers approximately half of that to brokers representing buyers.   Bottom-line, the seller is essentially paying a commission to two different brokers:  the one that sells their home, and the one that brings a buyer.  A commission rebate, sometimes called a buyer rebate, or alternatively a commission refund, is essentially an act whereby the broker working with the buyer shares part of their part of the commission with the buyer, generally in exchange for the buyer saving the broker time.   So the rebate is essentially money coming from the seller (that otherwise would have all gone to the broker.)

I got a call Friday from a woman who wanted to see homes this weekend.   10 to 15 she thought…many around Highlands Ranch.  I asked if she had driven by any of them yet, and she said no.    While I appreciated her inquiry, I told her that my real estate business was not a good fit for a person at that point in the search process.      But it does make me wonder what people think real estate agents do all day.    Setting up a dozen showings on a days notice is a ton of work in and of itself after you coordinate all the appointments with the Sellers….not to mention killing an entire Saturday over a long holiday weekend with someone you have never even met, let alone evaluated for capacity, credibility, and needs.   Yikes.  I certainly can’t afford to do that while I provide these significant commission refunds!

My vote for the biggest myth in real estate is that real estate agents are free to the Buyer. Sure, most often, the seller pays for the real estate commissions, but don’t you think they take that into consideration when they decide what sale price to accept!?   Plus, it’s all your money as a buyer…there is no deal with out you!

Someone just asked me if Buyers’ Slice Realty was like Zip Realty?   Not really.   In fact, ZIP does not even offer commission rebates any more!   And when they did, I believe they only rebated 20% of their commission.     Zip is a really large company too, and with me you get a small, local Colorado real estate brokerage company.  No 800 numbers here.   OK, maybe that’s not fair…not sure if Zip uses an 800 number or not.   🙂

ZIP Realty is one of the bigger commission refund companies in the real estate industry…so I thought I’d see what they are up to by doing the math on the amount of refund that they are offering home buyers in the Boulder, Colorado area.   Their rebate was similar to what I offer on very expensive homes…but when it comes to average home prices…Buyers’ Slice Realty offers way more!   Check it out for yourself.

Jason and Sarinya with their deed and keys…after getting over $4400 of my commission back just for doing the heavy lifting on the home search.   In fact, because theirs was a new construction project, the builder’s team helped them a lot, so it was easy!    The closing agent said she had never seen a Denver area real estate agent give back so much money!

Interestingly, it appears far less homes were sold along the Front Range in 2012 than in 2011.    Which isn’t surprise from the standpoint that as we sit here at the beginning of 2013, there are no homes to sell!  Inventory is extremely low…and you probably hear that from every real estate agent.    Combine that with the fact that demand is strengthening as our area grows, and the economy improves, and you can expect to pay more for a house this spring than last.

While I just closed in condo in Boulder last week, I keep getting calls from home buyers looking for condos in downtown Denver!   The funny part is that I don’t really advertise or market in Denver OR for condominiums….although both are great for those looking for a commission rebate as a part of their next real estate transaction!

Yes and No. Typically a real estate agent is required to get inside to see a home that is listed for sale, but you don’t have to “have” one in particular in terms of having an established, formal relationship with a singular real estate broker or brokerage team. Any agent can show you a home! In other words, you shouldn’t have to hire an agent to see a home. This same conclusion is identified at the Colorado Department of Regulatory Agencies website under the Real Estate Division.

Ask this on the street, and your average home buyer will say “the Seller.”    And while commissions are deducted from the Seller’s proceeds at closing, it’s all the Buyer’s money, and every Seller considers the commissions they’ll owe when deciding what price to accept for their home!   So I ask you:   who do you think “pays” the real estate commission?