Here are some of the questions we have recently received:
1. Question: You charge a "$495 listing fee" upfront and 2.9% commission at closing if I have agreed to sign a Buyer's Agency Agreement and buy my next home using you as my agent. Out of the 2.9%, does the Buyer's agent receive any commission?
Answer: Yes. For the above example, the total commission at the end of the sale is 2.9%; the Buyers agent receives 2.4% and MRG will receive .5% as the listing agent.
The exceptions to the .5% commission are: (1) there is a minimum commission of .5% or $850, whichever is greater, payable to MRG and (2) if the Seller is not using MRG as Buyers Agent for their next home, the listing commission will be .75% instead of .50%.
If MRG represents both the Seller and Buyer, MRG receives both the Buyer's Agent and Listing Agent commission.
2. Question: Why would another agent show property listed by Modern Realty Group?
Answer: Why wouldn't they? The commission paid to a Buyers' Agent under our plan will be 2.4%. That is the typical commission paid by most Real Estate Agencies in Central AR.
If an Agent has a Buyer and the Buyer wants to see a property we have listed, the agent has no reason not to show the property. If the agent refuses to show the property the Buyer should probably choose to work with another agent.
3. Question: I have been told if I list with an agent that is not from my town I will not get my home "shown" by local agents. Is that true?
Answer: No. This is a typical tactic some agents use to try and persuade a Seller to list with a "local" company.
Before the internet an agent could steer a Buyer to only the properties that agent wanted to show. Not anymore. With Realtor.com, Zillow, Trulia, and others, Buyers will create their own list of homes they want to see and not rely on the agent to find homes that meet the Buyers criteria.
If the agent refuses to show the property the Buyer should probably choose another agent.
4. Question: As a Seller, wouldn't it be best for me to list my home with one of the large, well known real estate agencies or agents?
Answer: No. Location, initial pricing, and condition of the home are the top 3 reasons a home receives an offer. When these attributes are in line with the market, the home will sell regardless of the agency or the agent.
5. Question: I have been talking with one of the "mega" agents who works for the top real estate agency in town. Her sales volume last year was over $25 million dollars. Hiring her means I get a top producer and the top agency selling my home. Even though I have to pay 6% wouldn't it be worth the extra commission to list my home with her?
Answer: First, please review the answer to question 4 above. Second, if you have plenty of money and don't mind paying twice as much in commission as you need to, then it's your choice.
6. Question: Isn't Modern Realty Group just an MLS listing service?
Answer: No. Modern Realty Group is a FULL SERVICE real estate agency. That means we provide the same services as all other real estate agencies with one exception; we do not advertise in the Sunday Real Estate Section of the local newspaper.
According to research, over 90% of the people looking for a home start with the various websites, i.e. Zillow, Trulia, Realtor.com, Redfin, etc; not the Sunday newspaper. When we list a property it will be listed on more than150 various websites.
7. Question: I can create "comps" from Zillow but I am not sure about the accuracy and if it's really "apples to apples"? Can you help me with an accurate pricing strategy?
Answer: Yes. Our analysis will be more comprehensive than Zillow's.
We analyze the homes in your neighborhood which have sold in the past year and which are currently for sale. We only select homes which are similar in size and age to your home.
We will look at the photos and description of those homes to compare with yours. We develop an average price per square feet to further provide a guide to pricing your home.
We will be happy to provide any potential Seller a FREE analysis of their home.
8. Question: Shouldn't I list my home higher than your "comp" analysis inorder to have room to negotiate?
Answer: We do not recommend "padding" your price based on the thought that most Buyers will make a "lowball" offer.
Today's Buyers are savvy. They have access to some of the same information as Realtors. Buyers are better informed than ever before about the market value of a home. They know when a home is overpriced.
Our philosophy is to price the home at a fair market value considering the location and condition of the home. It's not uncommon to see a flurry of activity from Buyers and multiple offers when a home is priced correctly.
9. Question: Would it be best to sell my home "as is" or to spend money and time getting new paint, flooring, and other updates?
Answer: When your home goes on the market, you want it to look it's very best. That first impression is extremely important when selling. Each showing is precious and, once showings start, you may only have one chance to impress a buyer.
We always recommend to evaluate whether or not your walls, door jambs and trim need a fresh coat of paint. If you have carpet, perhaps a good shampooing would refresh the carpet.
We will be happy to look at the physical appearance of your home, compare with other properties in your area that are for sale and those that have sold recently and help guide you on your decisions.
10. Question: If I list my home with you, can I expect you to hold an "open house" some Sunday?
Answer: Yes. We will be happy to hold an "open house".
11. Question: Do you charge Buyers a fee to show them property?
Answer: No. We never charge Buyers a fee. When first contacted we will ask for identification and some background information.
We will also ask the Buyer to have a recent pre-qualification letter from a lender.
We love working with Buyers but we want to make sure the Buyer is identified and qualified.