Mar. 17, 2007 - Matching a "Redfin Deal" for Microsoft Employees
Does Redfin have a special price for Microsoft Employees? Last week I received a call from "My First Blogclient". He had been doing his own research on buying an investment property down in Federal Way and wanted to make an offer on a 4Plex. He wanted to make an offer and indicated that Redfin had a special deal for Microsoft employees. While I have not been able to verify this, I was told that the charge of 33% of the seller offered rate for a buyer agent is reduced to 25% of the seller offered rate for Microsoft employees only.
Before calling Redfin, "My First Blogclient" called me. I thought about it. He had really done all of his homework regarding the property and loan programs to purchase the property. There was no issue of "who showed the property" as no one gets to see a four-plex before making an offer because no owner wants their tenants disturbed by "looky loos". So this was truly "A Redfin Deal - write it up and see it at inspection"
Many know that I am generally a supporter of the Redfin Business Model and this is a good example of when "A Redfin Deal" makes a lot of sense. He is a repeat client, so I already know him very well. He already knows what he wants to buy and didn't drag some other agent around showing him property to get to that decision. He spent many hours of his own time researching property and loan programs. And honestly, he did a bang up job for himself. Better than many agents could have done.
So I matched his "Redfin Deal" and he is now in escrow. We got to spend some time together, which for me was more like a much needed break, and not work at all. He's a great guy whose company I enjoy.
Some people shake their heads when I support the Redfin Model, especially agents. Any business that causes the rest of the industry to stop and think, offer more options, and generally change the underpinnings of a stodgy and unfair industry model, is to be lauded. Not just because Redfin is a new option for consumers. But because those options increase exponentially as it causes others to stop and truly think about the Buyer Agent Fee as a fee the Buyer Pays, and not just a "Seller Offering" in the MLS.
Before you, as a buyer, go to see homes, there is already a mechanism in place for the agent who opens the door for you to get paid. This is why agents may want you to sign a contract to work with them, but they do NOT rely on you to agree to pay them.
The payment for the services afforded you is already in place. You can choose to know what that is, or you can choose to feel that the service is free. By and large the buying public likes the idea of thinking it is free.
Most buyers do not talk about commissions, do not care what the agent is getting paid and simply look at houses and then buy one. That is how it has always been.
I do not urge you, the buying public, to get into a conversation about commissions in order to rock the boat with regard to the money exchanged. I do it so that you will be sure that your agent understands that he works for you and is paid by you. Most do not. You pay the commission as part of the sale price, so make it your business to know what you are paying AND make it your business to make sure the agent knows he works FOR you AND is paid by you.
When the agent thinks you are not paying him, and you are getting something for nothing...it will bite you in the butt somewhere along the line. So don't step into a house with an agent until you understand what you are "stepping into".
Jan. 7, 2007 - How does the Buyer pay their Real Estate Agent
Real Estate Commissions: By avoiding the subject , as the process does, you may be overpaying for the services you need in purchasing a home. If you are buying a property for more than $400,000, that is more likely to be the case than if you are buying your first condo for $150,000.
If you are pre-approved for financing, have salaried income, have been working at the same company and job for two years or more and have a fairly good idea of exactly what you want, you may be able to get some money toward your closing costs.
Different agents will react differently to the issue of the Buyer Agent Commission. Some will not want to talk about it at all. Before hiring an agent, ask them what you will be paying for their services. If they say that it is free or that the seller pays it, ask if the fee is negotiable between you and your agent. If they say no, or there is no fee, find another agent.
Times are changing, and pretending the services you need are free to you, is no longer acceptable. It insults your intelligence and is a red flag that the agent is not working for you. If the agent is working for you, then you should be able to discuss the fee for that service.
Many buyers LIKE that the service is free or that someone else is "paying" it, but really you are paying it because it is included in the sale price. So don't be lulled into the conclusion that you are better off if you do not have to talk about it at all.
ARDELL
DellaLoggia
On Seattle Real Estate including Kirkland, Bellevue, Redmond, Green Lake and most areas around Lake Washington North of Downtown Seattle.
Phone: 206-910-1000 - Mailto:Ardell@RainCityGuide.com
You can find many great Seattle real estate agents and loan officers on ActiveRain.com ARDELL DellaLoggia is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
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