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There is a lot going on behind the scenes in our real estate market. We at Sawyer Realty want to educate our sellers and potential buyer's as to how we operate and more importantly, educate the community about N.Y.S. Real Estate. You will find information about current technology, real estate terminology, and specific's about our company. We hope you find this informative and worth while. Use the link below if you have any additional questions? We'd love to hear from you! Do you have a New Question? - Click Here. Frequently Asked Question General: What is MLS? Are you a member? Why should I list with you rather than one of the "Big Names"? My sister-in-law is an agent. Shouldn't we list with her? Who is "Number One" in the business? Shouldn't we go with them? Why should we list with an Independent like you? What is the difference between a Realtor, a Broker, and a Salesman? Is an Agent the same as a Salesman? Agents are Employees of the Broker, Right? What is an Independent Contractor?
Commissions, Fees, and Payments: What is the commission? Everyone charges 6%, right? Does Sawyer Realty offer a discount? What is a "Co-op Fee"? Is it a fixed fee? What if I don't want to include a "Co-op Fee"? You guys are making a killing. Why do Realtors charge so much? How do Agents get paid, anyway? By the broker? My sister works at a mortgage company and might find me a Buyer. Can you pay her a commission?
Listing Plans & Terms: I just want to be in the MLS. How much will that cost? We already have a Buyer? Can we get a discount? How long do I have to sign up for? What kind of contract do I have to sign? What if I change my mind about selling after I'm listed a few weeks?
Other Services & Details: Will you be there for every showing? After all, we're paying you to sell the house. We want lots of advertising. What will you do? Do you run open houses on you listed properties? My house has major problems. Do I have to fix it to sell?
General: What is MLS? Are you a member? MLS stands for Multiple Listing System. MLS is a cooperative system for making the listings of each Participating Broker available for showing and sale by any other Participating Broker. When a listing is submitted to MLS it carries with it the listing Broker's "Promise to Pay" a specified "Co-op Fee" or compensation to any Participating Broker providing a Buyer for the listing. MLS is probably the single most effective marketing tool available to Realtors today. Sawyer Realty is a member in good standing of the Western Steuben/Allegany Board of Realtors Multiple Listing System.
Why should I list with you rather than one of the "Big Names"? Many reasons. Since every Realtor operates as an Independent Contractor (not an employee) the size of the company has little impact on how the Realtor gets the job done. Would you make the decision to buy or not buy a home you like simply because of the company name on the sign? maybe, but most likely no. Big Name Franchise firms capitalize on their name recognition to capture business, not to offer better, faster or different services. Smaller firms can almost always offer more personalized and flexible plans and services tailored to your specific needs. Sawyer Realty has been in business since 1968 providing many clients with excellent service. Our goal is not quantity but quality.
My sister-in-law is an Agent. Shouldn't we list with her? Maybe. Maybe not. Here's the main issue to consider: The most important single factor in selling your home is setting the price correctly. Mess up the price and you won't get a sale. If your sister-in-law can be completely objective and tell you what you need to hear rather than what she knows you want to hear then you might be OK. If not, you need to look elsewhere. Ask around and you will find that most doctors, lawyers and other professionals are uncomfortable dealing with family for that very reason. They cannot be totally objective so many won't do it at all. Who is "Number One" in the business ? Shouldn't we go with them? If you can figure that one out you deserve a medal. Everyone in the business , it seems, claims to be Number One. Look around and you will find that just about every Agent in town says that he or she is the "Top Producer". Well, so what? Do you really care if an Agent sold 200, 400 or 600 homes last year? And, if they did, what kind of personal service can you expect to receive for your "one" home ? Quantity simply does not equal quality in real estate and Sawyer Realty doesn't try to play in the quantity game. Excellent, personalized service that gets the job done right, the first time , is offered here. Plus, you can probably save money as well. You make the choice.
Why should we list with an Independent like you? According to the National Association of Realtors ®, more than 80% of their member firms are Independents, consisting of a Broker and no more than two Agents. Independents have found that they can't tolerate the indifference, lack of quality, and high costs associated with the large firms and franchises. Independents want to give a great service at a fair price without getting caught up in big company politics and restrictions. Big firms are fine if you want to buy something only a big firm can provide such as a General Motors or Ford automobile. Those big companies also have complete control of the quality of the end product. Residential real estate is different. The Independent Agent usually gives the best value for the dollar and doesn't sacrifice quality to do it. Sawyer Realty is an independent and provides many of the same benefits of a big organization.
What is the difference between a Realtor®, a Broker, and an Salesman? Realtors® are licensed real estate professionals who are members of the National Association of Realtors® and its local affiliate Associations. Realtors® agree by their membership to be governed by a strict Code of Ethics and Professional Standards in all their professional activities. A real estate Broker or Salesman (either of which are often referred to as Agents) may or may not be a Realtor®. It is important to note that the Realtor® Code of Ethics often holds the Realtor® to an even higher standard than that which may be required by applicable state real estate license law. Brokers in New York are those persons who are licensed by the state to operate a real estate business , to sell, exchange, lease, or purchase real estate and to provide other defined real estate services for others (the public) and to charge a fee or commission for any such activities and services. To obtain licensure as a Broker one must meet certain educational requirements, have worked at least two years as a licensed Salesman, pass a written Broker's license examination and participate in regular continuing education. * Salesman in New York are also persons licensed by the state to sell, exchange, lease or purchase real estate or provide other defined real estate services for others. However, a Salesman must be associated with (sponsored by) a New York-licensed real estate Broker and work under that Broker's supervision for all such acts. A Salesman may not accept commissions or fees for services from anyone other than his sponsoring Broker. A Salesman must also meet certain educational requirements, pass the Salesman's license examination and participate in regular continuing education. * * Note: These definitions are intended to be generally descriptive and accurate but may not be complete and comprehensive. For a complete and comprehensive definition of terms please consult the New York Division of Licensing. You may wish to visit the New York, Dept of State at:
Is an Agent the same as a Salesman? The term Agent is defined as someone who is authorized to act for or on behalf of and in the best interest of another person (his Principal) and who places the interests of his Principal above his own. In real estate the term Agent generally refers to any licensed person who is working with or representing someone in a real estate transaction regardless of whether that licensed person is a Broker or Salesman.
Agents are Employees of the Broker, Right? No, in most cases they are not. Most Agents (Salesmen) are not employees of the Broker but work as Independent Contractors. Even though they may maintain a desk or office at the Broker's place of business and use the Broker's company name they are normally not employees in the conventional sense. They are Independent Contractors.
What is an "Independent Contractor"? Anyone who performs work or provides services on a "contract" basis and is not an "Employee" is generally considered an "Independent Contractor". The Internal Revenue Service has strict guidelines that differentiate an Employee from an Independent Contractor. For example, commonly accepted employee benefits such as provision of medical insurance and pensions and general work rules such as requiring 40 hours of work per week tend to qualify someone as an Employee. Independent Contractors, on the other hand, usually receive no benefits and have few work rules or requirements to follow. The typical real estate Agent is an Independent Contractor. This means that an Agent's business expenses, medical insurance , and similar benefits enjoyed by most Employees are not provided by the Broker at all but are borne solely by the Agent himself. More importantly, an Independent Contractor conducts his business with a large degree of autonomy from the sponsoring franchise or company. Too much "control" by the company could jeopardize the Independent Contractor's standing and force a reclassification as an employee.
A Buyer's Agent is a licensed real estate Broker (or his authorized Salesman) who has agreed to represent another person (the Buyer) in a real estate transaction. That Buyer is then the Broker's "Client", to whom the Broker owes certain Fiduciary Duties. (See "What is a Client?" below.) In New York, a Buyer's Agent may have either a written or verbal agency agreement with his Principal. Note: Buyer's Agency relationships are very rare in our rural area.
A Listing Agent is a licensed real estate Broker (or his authorized Salesman) who has agreed to represent another person (the Seller) in a real estate transaction. That Seller is then the Broker's "Client", to whom the Broker owes certain Fiduciary Duties. (See "What is a Client?" below.) In New York, a real estate Listing must be in writing to comply with New York law as promulgated by the New York Department of State Licensing Division.
A Sub-Agent is any licensed Broker (or his authorized Salesman) who is assisting a Customer in the purchase or lease of real estate listed by another licensed Broker and for which compensation is offered by that listing Broker. Otherwise known as "Co-Broking".
In New York, a person shopping for real estate would generally be considered to be a Customer and the Agent assisting him would be considered either an Agent of the Seller or a Sub-Agent of the Seller. Unless prior Representation (as a Buyer's Agent) had been been established, either in writing or otherwise, the Broker owes no Fiduciary Duties (See "What is a Client?" below) to a Customer. However, certain Responsibilities for Honesty, Fairness, Accounting and Reasonable Care do apply.
A Client is any person being represented by a Realtor (Broker) pursuant to either a Listing Agreement or a Buyer Representation Agreement. A Client is owed certain Fiduciary Duties by the Realtor (Broker). Those duties include: Undivided Loyalty; Obedience; Reasonable Care and Diligence; Confidentiality; Full Disclosure; Accounting and other Duties as may be required by applicable law. In addition, a Client may also expect: Honesty, Fairness, Disclosure of Material Facts, Objective Evaluation, Negotiation Counseling and Assistance, and Price Counseling.
Commissions, Fees, and Payments: What is a commission? Everyone charges 6%, right? No, absolutely not. There is no fixed commission rate or structure. That would be illegal. Each Broker is free to set the fees charged by his or her firm. And, Brokers may set or negotiate different fees for different levels or types of services. Fees or commissions in the industry have traditionally followed the concept of that the Broker is paid only at closing based upon an agreed percentage of the sales price. In Wellsville and surrounding areas, that fee has often been at or near 6%. Today, however, many Brokers are offering discounts, incentives, and other options and payment plans to meet the varying needs of today's home Sellers. The time is past where "one size fits all". Does Sawyer Realty offer a discount? We offer a personalized, professional service at very competitive commission rates. We also have unique ways of accommodating our clients depending on the circumstances. We list property in a flexible manner with your wants and needs as our top priority. call or Email us with any specific questions. What is meant by commission splitting? Commission splitting or sharing is a concept of cooperation which facilitates maximum efficiency in the real estate market. When a Broker lists a property and enters it into the Multiple Listing System the property becomes available for any other MLS Broker or Agent ("Selling Agent") to show and sell. The MLS agreement is such that when the property is sold by any "Selling Agent" the listing Broker compensates that "Selling Agent" ** for their participation in the sale by paying them a stated "Co-op Fee" . Obviously, if the Selling Agents didn't get paid they would have no incentive to show and sell listed properties. The listing Broker pays this "Co-op Fee" out of the fee he collects from the Seller for listing the property. The Seller only pays one party, the listing Broker. ** Actually, the payment is made to the Broker of the "Selling Agent".
What is a "Co-op Fee"? Is it a fixed fee? The "Co-op Fee" is the amount that the listing Broker enters into MLS that he is willing to pay any cooperating Broker or Agent, e.g., the "Selling Agent", for bringing in the Buyer and getting the property sold. "Co-op Fees" are traditionally a percentage of sales price and are paid at closing. However, just as the listing fee is not fixed neither is the amount or payment terms of the "Co-op Fee" fixed. The "Co-op Fee" is whatever the listing Broker chooses for it to be. The traditional arrangement is that the listing Broker provides one half of the total listing fee as a "Co-op Fee" to the "Selling Agent". You guys are making a killing. Why do Realtors® charge so much? If you took the amount of money a Realtor makes on a given transaction and translated it into dollars per hour worked you might be surprised. Like it or not, a very considerable amount of time and hard work by the Realtor® goes into every real estate transaction. In most cases, the consumer (Buyer or Seller) doesn't see or realize most of what their Agent does for them. So, a general misconception persists among the home buying and selling public that Realtors® are all getting rich at their expense. Fact is, the average Realtor® in the U.S. earns only about $30,000 per year according to National Association of Realtors® statistics. Some make a lot more, some make less, and there is the part-timer factor but the average income is quite low. Surprisingly then, there are currently some 1,000,000 members of NAR nationwide while studies and statistics show that there is a need for only about half of that number. Why so many? First, it is quite easy to obtain a real estate salesperson license. Second, just like the general public, new people entering the business mistakenly think it is so easy and so financially rewarding. The reality is that if there weren't so many Realtors® chasing so little business then commissions and fees might be higher than they now are. Consumers of Realtor® services actually get a great deal for their dollar. How do Agents get paid, anyway? By the Broker? In New York, as in most states, only a licensed Broker may enter into a real estate listing contract with a client and / or be paid by a client for providing real estate services. Brokers in turn pay their salespeople (commonly known as Agents) a portion of the commission or fee received from the client. Depending upon the arrangement between the Broker and Agent (salesperson) , an Agent may get as little as 40 or 50% to as much as 100% of the total commission paid to the Broker. It is also important to understand that virtually every Agent (salesperson) working under a Broker is not an "Employee" but an "Independent Contractor". This distinction means that out of his share of the commission (the 40 or 50% or whatever) the Agent (salesperson) must pay all of his own business expenses, e.g., car, gasoline, marketing materials, insurance, etc. For more details on this issue please see: Independent Contractor . My sister works at a mortgage company and might find me a Buyer. Can you pay her a commission? Absolutely Not! In New York, and in most other states, it is illegal to pay anyone a commission or "finders fee" unless that person is also licensed as a Broker by The New York Department of State Department. It would be great if your sister can suggest or refer a Buyer for your home as a favor to you. However, don't forget that even after a potential Buyer is identified there is still a considerable amount of work to be done on the part of your listing Agent to complete the actual sale.
I just want to be in MLS. How much will that cost? It is just not that simple. Entry in the Multiple Listing System (MLS) is not available for purchase as a stand alone service to anyone. As a part of listing your property for sale with a Realtor you may be listed in MLS if that is provided for in your listing contract. Since MLS is the foremost marketing tool available today it does make sense that you would want your Realtor® to provide your property with an MLS listing. However, MLS is only part of the Realtor® provided services needed to complete the sale of your property. We already have a Buyer? Can we get a discount? Absolutely! Less work and time expended on the sale of your home by the Broker should result in less cost for you, not more profit for the Broker. Sawyer Realty recognizes this principle and will custom tailor a program to meet your needs. Call or email us with the details of your particular situation and we can discuss what charges may apply for our assistance. How long do I have to sign up for? Traditionally, Brokers taking all the risk in return for a full commission paid at closing wanted and deserved a listing contract of at least six months in length. This time was essential since market conditions vary and overpriced properties and those with other negative attributes often take much longer to sell than others. Sawyer Realty now offers a 100% Service Guarantee with all listing plans. In such a case that the Seller is for any reason dissatisfied with our service, the seller may terminate the listing with a specified written notice and a minimal fee. Note: To comply with applicable state law every listing agreement must have a specified starting date and a specified termination date. What kind of a contract do I have to sign? Sawyer Realty listing contracts are designed to be comprehensive but straightforward and easy to understand while complying with all applicable regulations and law. Special addenda or provisions are incorporated where needed to define special terms unique to your listing. What if I change my mind about selling after I'm listed a few weeks? We understand that life throws us curve-balls and simply ask our Clients to communicate with their Realtor. If you choose to terminate your listing contract prior to the terms of the listing, there may be a minimal termination fee to cover the time and expense of the initial work that must be done on all listings. However, please carefully consider your need and motivation to sell before putting either Sawyer Realty or yourself to the trouble of placing your home on the market in the first place.
Will you be there for every showing? After all, we're paying you to sell the house. Yes! Although it is becoming harder and harder to be at every showing, due to the increased number of showings scheduled with other cooperating agencies. We at Sawyer Realty have a long running tradition of being at each and every showing. We feel that we can't fully represent the property or your interests without this work ethic. Many agencies do not show up for every showing, right or wrong? We'll be there. We want lots of advertising. What will you do? The most effective advertising for selling most Allegany County homes consists of: 1. The yard sign, 2. The MLS. 3. Print advertisements, which are most effective for their role in promoting the listing Broker and/or Agent, but also appeal to a large part of our community. Sawyer Realty advertises in our local newspaper -Daily Reporter and many times in the Sunday Pennysaver. At different times during the summer months you will hear some radio ads and public access channel ads. We Sell Homes! I love open houses. Can mine be open every weekend? As part of a complete service, we will conduct open house for our clients, although after years of running and observing open houses, they provide limited, if any, benefit in getting homes sold. Sure. You can personally hold your house open to the public at any time you see fit. After all, it is your house, isn't it? All Sawyer Realty requires is that you keep an attendance record of all visitors (including phone numbers and addresses) and provide us a copy of that list after each open house for follow-up up purposes. CAUTION: There are also significant risks in letting the general public have access to your home. Sawyer Realty does not recommend and, as a general rule, does not hold open houses. My house has major problems. Do I have to fix them to sell? Probably so. It is always possible to sell a property "As Is". The problem is that with residential real estate most Buyers are going to finance their purchase. Lenders will usually not lend money on a property that has major defects (such as foundation problems or roof problems). So, unless you only sell to a Buyer that has the actual cash you have a problem. There are ways to deal with many situations. Please call or Email with the details of your situation. |
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