by Kevin Van Eck | Aug 13, 2024 | Industry, News Feed
There are a variety of reasons for making this shift.
Due to the commission litigation, “commission” and “compensation” have become hot-button words.
Sellers have repeatedly heard through the media that they only need to pay their half of the commission. Using the word “fee” opens up an infinite number of possibilities for how the sellers may choose to help the buyer — for example, a credit to repair the roof or to provide the buyer with an interest rate buy-down.
Buyers are more likely to push back on paying their own “commissions” because they may not be able to afford it, haven’t had to do so in the past or simply don’t like the idea.
Using the word “fee,” also encompasses the fee for service (menu of services) business model where the buyer may elect to pay their agent for completing specific transaction tasks, such as locating and showing the property, negotiating the offer, and/or handling transaction problems required to close the deal.
The Department of Justice (DOJ) and the Consumer Federation of America (CFA) want our forms to be “consumer-focused” rather than “Realtor-focused”
The new eXp Buyer-Broker Representation Agreement offers one possible way to address this concern. This document uses the term “broker fee” throughout the agreement.
It also references how the fee will be “paid,” i.e., not how the broker will be “compensated.” In fact, the word “compensation” is used only twice in the agreement:
COLLECTING BROKER FEE FROM THE SELLER:
Credit to Buyer, at Closing. Buyer may choose to negotiate that the Broker Fee be paid, in whole or in part, by the seller, through a seller-credit to Buyer, at closing. At Buyer’s instruction, Broker will write this request into Buyer’s offer to purchase the Property.
AND
Direct Seller-to Broker Compensation: Buyer authorizes Broker (eXp) to request that the Broker Fee be paid, in whole or in part, by the seller, to Broker (eXp), at closing. Any such arrangement will be memorialized in a separate compensation agreement as between the seller and Broker (eXp). Buyer understands that Broker (eXp) cannot communicate with the seller without first receiving the seller’s broker’s permission to do so.
Use ‘terms and/or conditions,’ not ‘concessions’
For decades, there has been a field in most purchase contracts where agents can write in additional terms or conditions their buyers want, such as “repairing the roof,” “buying down the buyer’s interest rate,” or “including the dining room chandelier in the purchase price.”
by Kevin Van Eck | Jul 25, 2024 | Industry, News Feed
The merger with the team managed by Esther Ozuna continues the growth of an Atlanta team that has ranked among the RealTrends 100 nationally in recent years.
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Keller Williams Heart of Atlanta Group announced on Thursday that it had picked up another team with the addition of 11:11 Realty Group.
The firm said it had picked up the team led by Esther Ozuna, who is president of the Women’s Council of Realtors Atlanta and a board member of the Atlanta Realtors Association.
“Esther has long been an influencer and promoter of opportunity in various real estate spaces that I have admired for many years,” said Manny Recinos, team leader of Keller Williams Realty Metro Atlanta. “To have her and the 11:11 group join our Keller Williams family here in Decatur is an honor and we look forward to all we will accomplish together in the future.”
Recinos said that by merging with 11:11 Realty Group, Keller Williams Heart of Atlanta Group would look to continue scaling in the region.
The group was founded in 1996 by Rick Hale and is currently managed by operating principal Brett Caldwell. It has ranked among the RealTrends Top 100 Real Estate Brokerages nationwide in recent years.
“My vision for 11:11 Realty Group was to cultivate a culture with a strong dedication to our diverse clientele and ensure that culture stands out,” Ozuna said.
“Additionally, I aimed to adopt a forward-thinking approach towards the Atlanta market and the opportunities it offers to both our agents and clients. Having grown in the industry over the years, I am now thrilled to partner with Keller Williams Metro Atlanta as we align closely in our vision and share a hopeful outlook for the future; drawn particularly to their standout education, office culture, and technology offerings.”
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by Kevin Van Eck | Jul 19, 2024 | Industry, News Feed
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After brokerages and MLSs reached out, the Consumer Federation of America created criteria focused on whether agreements are readable, understandable and fair to buyers.
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by Kevin Van Eck | Jul 18, 2024 | Industry, News Feed
Houston-based Nan & Company Properties has launched an auction division, with the initial bidding centered on a Friendswood mansion, the company announced.
July is Luxury Month at Inman. Tune in as we survey the evolving luxury market, explore emerging trends, and talk to top producers and influencers in the ultra-luxury space about how they got where they are today and the insights they’ve gained along the way. The month culminates with the announcement of the expanded Golden I Awards live onstage at Luxury Connect (July 29-30) in Las Vegas.
Houston-based Nan & Company Properties, an affiliate of Christie’s International Real Estate, has launched an auction division with initial bidding on a Friendswood mansion, the company has announced.
According to The Real Deal, the auction began on July 15 with the listing of FasciaBlaster inventor, Ashley Black’s, estate. The 12,954-square-foot-mansion stretches across 10 acres of land at 405 W. Spreading Oaks Ave. in Houston’s Friendswood suburb.
The 18-year-old, two-story home features six bedrooms and five and a half bathrooms. Inside the mansion, there are custom vaulted wood beam ceilings in the main living room and entertainment rooms. Upstairs, the second floor is divided into two wings, keeping the living quarters private, according to the property’s listing.
To ensure more privacy, the home features a gated entry. Outdoor amenities include a 24-seat hot tub, a resort-style pool and three garages, spacious enough to hold 12 vehicles.
After initially coming to the market with a $4.9 million asking price, the property received a bid of $2.5 million on the first day.
Nan Luxury Auction Concierge, Nan & Company Properties’ service for selling luxury properties at auction, is intended to guarantee impressive sales at quick rates.
Nancy Almodovar | Nan & Company Properties
In a statement to The Real Deal, Nan & Company Properties CEO and President Nancy Almodovar said that the company’s auction division is an outgrowth of the need to serve owners who are searching for a more convenient way to sell their luxury homes.
“A lot of the time, it’s just because they’re unique properties,” Almodovar said. “And the sellers don’t want to deal with your typical [process of] putting it on the market and just kind of waiting.”
Faster deals may be on the table for sellers but so is a list of drawbacks.
Rogers Healy, CEO of Rogers Healy and Associates Real Estate, told the Dallas Morning News that auctions tend to be accompanied by higher upfront fees for sellers and high buyer premiums, which can be up to 10 percent of the purchase price.
Prospective homebuyers can bid on the home by contacting the brokerage.
Houston Business Journal ranked Almodovar its No. 2 luxury agent in 2023. Nan & Company Properties affiliated with Christie’s International Real Estate in February 2017.
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