Q. I’m thinking about selling my home without a broker and using the savings on commissions to recoup the most profit in a down market. What do I have to lose?
A. Actually, there’s a lot you can lose – in terms of both time and money. Success rates are low. And most people who succeed wind up netting less for their trouble – including the cost of commissions – than they would have if they worked with a broker. Q. I went into a brokerage firm and asked if someone would show me a few homes in the area. An agent requested that I sign a document agreeing to have her “represent” me. Was that really necessary, or did I get tricked into doing it?A. No, you didn’t get tricked. The state of Connecticut mandates that anyone working with a broker be legally represented. In so doing your agent is legally bound to protect your interests, adhere to specific ethical guidelines of behavior, and keep any personal information about you strictly confidential. Q. I hear the words “agent,” “broker”, and “realtor” used to describe someone helps people buy and sell homes. Why is that?A. Actually, there are some differences. A “broker” holds a license to engage in the business of real estate, including collecting fees for service. The principals of brokerage firms (i.e. Prudential, Coldwell Banker, etc.) are licensed brokers. An “agent” holds a sales license from the state of Connecticut, and works as an agent (or sub-agent) of a broker. The term “Realtor” refers to a real estate professional that is a member of local, state, and the National Association of Realtors. Q. My husband and I signed a binder agreement to purchase a home, but before the contracts were signed the seller decided to take the house off the market. We were told the binder was not legally binding. It made no sense to us.A. It doesn’t make sense to a lot of people. In those Fairfield county communities where binders are used they serve as an interim agreement before formal contracts are signed, and during which either party – buyer or seller – can withdraw from the agreement for any reason and the earnest money put into escrow by the buyer is returned. Some binders state they are legally binding, but this almost never enforced. Q. Does the real estate agent keep the whole commission from the sale of a home or does she have to share it with someone else?A. Real estate commissions are shared. In most cases the commission is split four ways: half the commission is split between the selling agent and that agents’ brokerage firm; the other half is split between the agent representing the home buyer and that agents’ brokerage firm. There are not infrequent cases where the agent for the seller also finds the buyer, in which case the commission is a two-way split between the agent and the agents’ brokerage firm. Q. Why haven’t real estate commissions gone down now that so much information is available on the internet?A. The value of a real estate agent is their knowledge of local markets and the guidance they provide to help their clients make informed decisions throughout the buying or selling process. Q. Does it make sense to buy a home in today’s market where home values have gone down so much?A. There’s an old adage about buying stock that could apply to homes: “when everyone is selling, that’s the time to buy.” Today’s market offers great value to buyers who plan to keep their homes for at least the next three to five years. Q. Can I choose not to have “For Sale” sign in front of my home if I list with a broker?A. Yes. But it’s’ not necessarily a good idea. Think of your sign as free advertising. Potential buyers drive neighborhoods, and frequently call the phone number on the sign asking for more information about the property. |
