31 Oct “I will sell your home for free.” Why I Can’t Do It!
“I will sell your home for free.” How many times have you seen this hook in the water? I asked my 43 year old neighbor, 11 year old cousin and trusted home inspector what they thought of this phrase. I might as well have asked them what 1+1 equals. They all knew the answer. Selling your home for FREE means FREE. No cost involved. That was their response. I think it’s fair to suggest that almost everyone reading this would draw the same conclusion.
I have never sold a home for “free.” It’s impossible. Here’s why…
1. I have to pay the buyer’s agency a typical commission. Even if I “LIST” your home for ZERO percent I am still expected to pay a commission to the broker who brings the buyer. If I advertise 0% commission on the MLS you can bet your bottom dollar that nobody will show my listing.
2. Even if I found the buyer and STILL decided to not charge a commission I’d still be obligated to pay for errors & omissions insurance. That cost is between 50-100 dollars. To insure the transaction and be in compliance the fee must be paid – BY SOMEONE.
3. Do you think my broker would be willing to work for free too? I am real estate sales person. This means my real estate license is under the supervision of a real estate Broker. My Broker is able to buy groceries and pay for her car because her agents pay her SOMETHING. Let’s pretend I pay her $100.00 per transaction (which I don’t) that’s another $100. What if she got 10% of my commission?
Each transaction has a financial cost to it that must be paid at closing and funding. If I were to list a home for “FREE” on both sides of a deal I would be out almost $200 potentially. There are millions of Realtors who would be obligated to pay for much, much more.
The point is clear. You almost ALWAYS have to pay commission to the Buyer’s Broker. You can list for free, but you’ll have to cough up X percent if you want to join the heard so to speak.
Most real estate lawsuits involve deceptive trade practices and home leases. Everyone has a niche or way of bringing in new business. Being innovative isn’t a crime, but any bait and switch model should be burned at the stake. Shred it at inception! I NEVER continue the conversation when I feel I’ve been reeled in. Why? I get mad at myself. I get irritated that I allowed it to happen. When I’m mad at myself you can imagine how I feel about the other person?
The same can be said for refinances.
If I hear one more time.. “We’ll Refinance Your Home For Free, No closing Costs!” Bank of the Northern Hemisphere doesn’t have billions and billions of dollars because they like you. They don’t fly around in their corporate jets with hookers and cocaine because they did your refinance for nothin. THEY GOT YOU SOMEWHERE. BELIEVE IT.
To me FREE means I ain’t payin’ one single solitary penny for anything! NOTHING. Is it wrong for me to EXPECT what *YOU* say?