Redfin seems to be targeting sellers and advertising their "concierge" service hoping to attract sellers interested in a reduced listing commission of 1% (2% to stage and touching up your home) while still offering 2.5% to the agent representing a Buyer. They may be losing market share with regards to representing Buyers here in Los Angeles to Open Listings, which offers a 50% rebate (essentially 1.25% based on a 2.5% commission).
We've also noticed that when using a Redfin Agent (who works for the Redfin corporation), you'll be receiving a lower commission rebate as well. And recently, when using a Redfin Partner agent (Independent Agents/Brokers who receive referrals from Redfin). Buyers will no longer be receiving the $500 closing gift going forward.
What this means is that Buyers and Sellers have numerous options to negotiate a reduced commission (or increased Rebate) without having to sacrifice quality of service.
Good luck out there everyone!
Friday, December 8, 2017
Thursday, December 7, 2017
First and Most Important Thing To Do As a First Time Home Buyer
As the end of 2017 draws near, many of us are beginning to highlight target goals for 2018. Not far behind getting back in shape and living healthier, is the idea of possibly purchasing a home. What stems is usually a conversation of regarding prospective cities, target school districts and particular styles. However, before you spend many a Sunday afternoon visiting open houses and driving around prospective neighborhoods, there is just one thing you must do first that many Buyers often put off until they've identified a particular property.
Step 1 of 1. Reach out to a lender so you can discuss how much you are pre-approved for. You don't need to have your credit checked (for those that are worried about credit inquiries) at the onset as any reputable lender should be able to give you a spectrum based on your documented income. What this will also force you to do is prepare your finances in advance, which will save you a lot of time and stress later on down the road.
No need for checklists or Top 3 lists here. If you're interested in purchasing a home in the future, connect with a lender (and perhaps also sign up for credit karma so you have an idea as to where your credit profile is). If the lender wants to run your credit, politely decline and say that you'll do so when you're closer to making an offer, but you just wanted to discuss qualifications based on your current income.
Any Realtor you happen to meet or connect with will have preferred lenders that they'd be happy to refer as the loan underwriting process can make or break any future real estate transaction.
Hope that helps!
Step 1 of 1. Reach out to a lender so you can discuss how much you are pre-approved for. You don't need to have your credit checked (for those that are worried about credit inquiries) at the onset as any reputable lender should be able to give you a spectrum based on your documented income. What this will also force you to do is prepare your finances in advance, which will save you a lot of time and stress later on down the road.
No need for checklists or Top 3 lists here. If you're interested in purchasing a home in the future, connect with a lender (and perhaps also sign up for credit karma so you have an idea as to where your credit profile is). If the lender wants to run your credit, politely decline and say that you'll do so when you're closer to making an offer, but you just wanted to discuss qualifications based on your current income.
Any Realtor you happen to meet or connect with will have preferred lenders that they'd be happy to refer as the loan underwriting process can make or break any future real estate transaction.
Hope that helps!
Friday, November 17, 2017
Redfin vs OpenListings vs PurpleBricks - The more options the better for Buyers and Sellers
With the rise of sites like Redfin, OpenListings and PurpleBricks, many of our clients and first time home buyer and seller inquirers often start with, which platform should I go with and why should or shouldn't I use this particular service? The more options you have as a Buyer or Seller, the better, as Real Estate agents will hopefully compete for the opportunity to represent you in a transaction, ideally resulting in higher levels of service and greater possibilities of fee reductions or commission rebate opportunities. However, we want to remind everyone that you don't need to limit your options to a few platforms/firms in order to get what you want because everything, from listing fees to rebate incentives are negotiable.
Below are some helpful tips in case you're interested in learning more about the sites above work. We definitely encourage you to reach out directly and compare/contrast offerings purely from the costs/commissions standpoint.
As a Buyer:
1. Redfin's rebate structure fluctuates and seems to have decreased in order to make for the discount in listing fees in order to capture market share.
2. PurpleBricks also offers a flat $1000 rebate amount (less than other competitors)
3. OpenListings offers a 50% rebate (splitting half of the cooperating broker's commission and rebating half to the prospective Buyer)
As a Seller
1. Redfin currently advertises a 1% listing commission, but neglects to also mention that an additional 2.5%-3% will be offered to a cooperating broker/agent that brings an offer.
2. Purple Bricks charges a flat fee to list $3,200 + 2.5% to the cooperating broker, but while the flat fee is less, consumers have mentioned that the the principal is required to pay the fee regardless of whether the home sells or not. (i.e. if the home doesn't sell after a certain period and you decide to switch brokers)
3. Open Listings focuses primarily with Buyers
As more options present themselves, Buyers and Sellers will continue to benefit from the reduction in fees and increases in transparency and efficiency. However, we still recommend that the best way to evaluate value is to directly negotiate with any Real Estate Agent you meet. There is no use paying for the same basket of services, especially when you can leverage these publicly advertised offerings as your minimum criteria just to get to the negotiating table.
Happy Friday and will check back in after a glorious Thanksgiving holiday.
Stay informed and keep the questions coming!
1. Redfin's rebate structure fluctuates and seems to have decreased in order to make for the discount in listing fees in order to capture market share.
2. PurpleBricks also offers a flat $1000 rebate amount (less than other competitors)
3. OpenListings offers a 50% rebate (splitting half of the cooperating broker's commission and rebating half to the prospective Buyer)
As a Seller
1. Redfin currently advertises a 1% listing commission, but neglects to also mention that an additional 2.5%-3% will be offered to a cooperating broker/agent that brings an offer.
2. Purple Bricks charges a flat fee to list $3,200 + 2.5% to the cooperating broker, but while the flat fee is less, consumers have mentioned that the the principal is required to pay the fee regardless of whether the home sells or not. (i.e. if the home doesn't sell after a certain period and you decide to switch brokers)
3. Open Listings focuses primarily with Buyers
As more options present themselves, Buyers and Sellers will continue to benefit from the reduction in fees and increases in transparency and efficiency. However, we still recommend that the best way to evaluate value is to directly negotiate with any Real Estate Agent you meet. There is no use paying for the same basket of services, especially when you can leverage these publicly advertised offerings as your minimum criteria just to get to the negotiating table.
Happy Friday and will check back in after a glorious Thanksgiving holiday.
Stay informed and keep the questions coming!
Wednesday, April 5, 2017
LA Real Estate Rebate - The Concept of Leverage
Leverage. When negotiating the terms of sale, both sides will think they have more than the opposing. Here are a few things to keep in mind that you may find helpful as you learn more about Los Angeles LA Real Estate Rebate tips and cost saving incentives.
- If a home has been sitting on the market, buyer may have more leverage as seller may be more inclined to sell. Or, the seller may simply be holding out for a particular price
- Timing: If seller plans on purchasing a home and is already in escrow, they may be more inclined to sell their existing home if they submitted a contingent offer
- Leverage shifts towards the buyer once under contract as the seller is more likely to make reasonable concessions to move the deal forward. However, unrealistic requests may not be entertained and buyer risks cancellation and loses leverage if there are back up offers in place.
- Just because your requests and concerns are valid, doesn’t mean the seller will entertain them.
- Disclosing that you are working with an agency that has “DISCOUNT or REDFIN” in their name may inform sellers that you are receiving a commission rebate and sellers may not be as inclined to offer concessions. The beauty of an LA Real Estate Rebate Realtor is that we’re a collaborative and don’t give away our rebate incentive in the beginning.
- Your LA Real Estate Rebate ensures savings and offers additional incentives to offset closing costs or increase your bid if in a competitive region. Remember the goal is to minimize your immediate out of pocket costs.
During any type of negotiations, leverage will always come into play, whether it is perceived are actual. Be reasonable in your requests and negotiate in good faith and put yourself in the opposing party’s position. Doing so offers some perspective, clarity and may be the difference in a successful negotiation or not coming to terms.
We’re here to make the transaction easier, so reach out to LA Real Estate Rebate if you have any questions. As long as you’ve been informed and understand the rebate incentive, we’ve done our job.
Friday, March 31, 2017
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