Sept. 16, 2017

Flat Fee Brokerages

Flat Fee Real Estate Brokerages, a good deal or not?

A new trend offered to sellers to list a home is the Flat Fee Brokerage. Sellers pay a fixed amount, sometimes as low as $99, and have the home listed for sale in the MLS. Just like working with a full-service brokerage.

You would think, WOW!!!! that is a wonderful deal. It can be, but most of the time is not. The MLS works because of listing agents sharing part of their commission with agents who bring a buyer. This is what we call a commission split. It is my experience that most homes are sold with the help of a cooperating broker. Other agents sell my listings, and I sell their homes listed in the MLS.

The $99 is, of course, not enough to compensate an agent who spends at least a day to show homes to prospective buyers. That is why these agents receive a separate compensation form the seller. This can be 2-3%, depending on what the seller is willing to offer. The advertised final cost to the seller is therefore still a percentage of the sale price, and the cost of the seller is therefore much more than the advertised flat fee.

On the buyer's agent side (split) there are no savings for the seller because the compensation is the same as with a full-service broker.  So what do you get for your 99 to 300 dollars? NO REPRESENTATION

  • You will have to show the home yourself. This may take a lot of time waiting for agents to show up. Sometimes the flat fee brokerage adds a lock box for a fee.
  • You will not get any professional pictures, videos or drone areal photography. Your web presence may suffer because of this.
  • There is no buffer between you and the buyer's agent. This may cost you more dollars than the potential savings because an experienced agent can read you like a book. He needs to deal with you honestly and fairly, but he will be committed to his buyer.
  • You have to evaluate the offer from a real estate professional yourself and familiarize yourself with the usual terms of a transaction and the legal lingo.
  • Once you have an executed contract you need to contact a title company and follow up with the timeline of the transaction. 
  • You are exposed to expensive lawsuits if your inexperience results in a legal conflict.
  • These companies list your name and email in their listings, exposing you to a tidal wave of phone calls and emails from agents should the listing expire. 

Most agents do not like to work with a seller who is not professionally represented. Often they have to do the work for the seller because of seller's inexperience. Your home will be on the bottom of the list to show if there are better alternatives. Selling Real Estate is a peoples business. Agents often prefer to work with certain other agents based on past experience. 

It is amazing that sellers are still willing to sell one of their most expensive assets this way. 

Time will tell if this trend is here to stay. 

In the meantime, we are here to help you sell and buy homes in a dedicated professional way and at a fair price.

Call us at 407-701-6814 if you are ready to talk Real Estate.

Hans Welbergen

Posted in Real Estate News
May 5, 2017

Rental tips

We are closing in on the season that a lot of Americans plan a move. Finding a home to rent can be tricky.  Unfortunately, there are unscrupulous people who are out to get your money without delivering the goods. The rental experience can also be bad because of owners not knowing the law and or not willing to maintain the home properly.

10 signs you may getting into trouble when you encounter this.

-  The rental rate is too good to be true 

-  You are not allowed to view the home before handing over the deposit.

-  You have to send money by the Western Union and are not able to hand it over in person. 

-  The person you are dealing with does not ask you questions or presents you an application but is just interested in the deposit.

-   The "owner's" name you write on the check does not match the tax records.

-   You will be asked for more than two months rent to get a discount on the rent.

-   The person you are dealing with is unwilling to identify himself.

-   You find the home listed online with an agent who does not have the same name as the person you are dealing with.

-   The home is in disrepair and the person you are dealing with tells you he will fix it once you move in.

-   The yard is bad shape because of lack of water or lack of lawn maintenance.

5 Tips to get a good rental experience.

- Do not rent from an individual owner. Rent a home in the portfolio of a management company. A management company has the resources to get the repairs done quickly and has a reputation to protect. Individual owners are often not good with timely repairs.

- Use realtor.com to find your home. It is the most accurate website to find a rental home. You will not be wasting your time calling on homes which have already been rented weeks ago.There are sites out there who just do not want to keep information current.

- Use an agent familiar with the area and view a couple of homes. The agent knows the area and can tell you about schools, transportation, and shopping. 

- Make sure the home is in good repair before you decide to put down your hard earned money. 

- Review the proposed lease before handing over the deposit.

Happy renting

Posted in Real Estate News
March 20, 2017

Orlando Housing Market Statistics

Orlando Real Estate Market: status 2/17

 

Altamonte Springs Median Sales Price: $170,000, quarterly changed: 0%

Apopka  Median Sales Price: $219,000, quarterly changed: 18%

Clermont  Median Sales Price: $220,000, quarterly changed: 2%

Kissimmee Median Sales Price: $240,000, quarterly changed: 2%

Ocoee Median Sales Price: $280,000, quarterly changed: 17%

Orlando Median Sales Price: $240,000, quarterly changed: 5%

Windermere Median Sales Price: $600,000, quarterly changed: 8%

Winter Garden Median Sales Price: $366,000, quarterly changed: 4%

Winter Park Median Sales Price: $790,000, quarterly changed: 15%

 

Give us a call or send us an email if you'd like more detailed information on your neighborhood, what your home's value is today, or to receive automatic emails when new listings go live in your neighborhood.

© Welbergen Team .  www.orlandoresidence.com

Posted in Orlando News
March 13, 2017

Estoppel Fees

I just appealed to our State Senators to cap the Estoppel fees. Estoppel fees are the fees that community association management companies may charge a seller to provide information about their association dues, fees and assessments prior to closing.Capping estoppel fees is important to the seller. It will protect the seller from exorbitant fees.

Posted in Real Estate News
March 13, 2017

Windermere Shopping

New Windermere Shopping Plaza Coming Soon 

 

Construction may start soon on the new upscale shopping plaza on the corner of County Road 535 and Fiquette Rd. The new shopping plaza will be constructed next to the new West Orange high school. The shopping plaza will have a Fresh Market store.

Posted in Windermere News