I love it when a seller of one of our homes buys another one of our homes.  It is happening often as we continue to penetrate the market and attract more quality homes.   Brandon and Jenny Bryman purchased our 2.5% Real Estate Direct home at 1542 Church Road in Bennington – which is between Rochester and Buffalo.  The seller of Church Road is paying a commission of 2.5% on a sale of about $350,000 – Barb Murie is the agent.  In order to purchase Church Road, the Bryman’s put their beautiful home at 968 Three Rod Road in Alden for sale with America’s Choice and 2.5% Real Estate Direct through the 1% combination commission program.   They sold their $200,000 home for only 1% commission – Barb Murie handled their sale.

Our seller of 11 Orchard Hills in Spencerport has sold and is buying our home at 51 Village Walk in Spencerport.  Our seller of  of 17 Coleman and the seller of 51 Village Walk used Susan Payne as a buyer’s agent to buy a new home.

Many of our sellers use our agents as buyers agents when they buy a home as well.  The seller of 611 Hosta Circle in Penfield sold with the America’s Choice/2.5% Real Estate combo program.  She offered two percent to buyer’s agents and was told by agents that she would never be able to sell without offering 3%.  Of course she did sell and now she has used one of our agents as a buyer’s agent for her next purchase.  This occurs because of the trust created by the professionalism exhibited by our agents and staff.  We really care about our customers.

Deplorable is the only way I can describe the recent behavior of real estate agents in the Rochester market.  I must surmise the behavior I am about to describe is in response to the many homes we are selling for low commissions.  Our America’s Choice/2.5% Real Estate Direct 1% combination program truly offers more than is offered by agents charging 6 or 7% and it is working better.  Homes are selling faster, for more money, and with less cost to sell.

We have been informed that real estate agents are telling homeowners that they MUST offer at least 3% to buyer’s agents on the MLS to entice the agents to show their home. We have been informed by two sellers in Rochester that a high up member of the GRAR started mocking them for seeking to sell their homes with reasonable transaction costs (i.e., not paying $10,000 to $35,000 to sell their homes). This “professional” real estate agent with all the designations following his name even went so far as to raise his voice when they would not list with him for 6 or 7%.

Read what Griffin Coles writes on April 17, 2009:
April 17, 2009
From: Griffin Coles
Property:  291 Neros Run, Webster, NY

I am extremely happy I used America’s Choice and would never pay the sales commission to use a traditional realtor.  I sold my townhouse with the use of America’s Choice and the MLS through 2.5% Real Estate Direct in 4 days. With the combination of America’s Choice and the MLS I received as much exposure to the market as any agent could offer for thousands of dollars less.  In fact, a real estate agent specifically told me that I would not be able to sell my townhouse through America’s Choice because other real estate agents would not bring their clients to see the house unless they received a 3% commission. The real estate agent also had a lot of negative things to say about America’s Choice which statements were unethical and were absolutely false.

The townhouse sold in only 4 days and I ended up paying another real estate agent only 1.5% in commissions.  The buyers of my townhouse found it online themselves and set up the appointment without the help of their real estate agent.  That’s how much exposure America’s Choice and the MLS can provide you with.

Having Sue Payne as my real estate agent from 2.5% Real Estate Direct was a huge help.  She guided me in the right direction from day 1 and all the way through the closing. Sue dealt with the buyer’s agent with the negotiations and went to battle for me. It was nice to know she had my back and looked out for my best interest.  She provided me with the selling recommendations which got me the maximum price for my townhouse in the shortest amount of time.

My parents used America’s Choice, my brother-in-law used America’s Choice and now I have used America’s Choice.  It really works and it saves thousands of dollars that can bue used for all the other expenses that come along with buying a home.  I would recommend America’s Choice to anyone.
Thank you,

Griffin Coles

I put forth the following for your consideration:

1.  Offering a commission to buyer’s agents has nothing (or very little) to do with the number of potential buyer’s learning that your home is for sale.

2.  The amount, if any, that you offer to a buyer’s agent has nothing (or very little) to do with the the number of potential buyers viewing your home or making an offer.

3.   This accounts for the anger displayed by the real estate agent in my discussion above.

Why do I put forth the opinion above?

A.  In England, France and almost every advanced country worldwide the concept of sellers offering high commissions to buyer’s agents is unheard of.

B.  The reason is simple:  there is no viable reason to make such an offer to buyer’s agents for the purpose of increasing your exposure to buyers.

C.    The reason there is no viable reason to offer a commission to entice a buyer’s agent to show your home is that BUYERS already (or will on their own) know your home is for sale.  You don’t need a buyer’s agent to TELL potential buyers about your home.  YOU and /or your listing broker have already told the buyers about your home directly through (1) Realtor.com, Homesteadnet.com, Buffaloniagarahomes.com, keepequity.com, americaschoice.com, any of the major realtors websites (which take their listings from your MLS listing with your listing broker) or any of a myriad of Internet sites that attract buyers; (2) print advertising in newspapers and real estate magazines  and (3) real estate signs.

We sold a home on Seneca Lake for over $500,000 where the buyer’s agent was required to take 1% (they wanted 3%).  We sold a house on Graystone in Orchard Park where the buyer’s agent took 2.5%.  I understand there is another home in Orchard Park which is going to contract this week at over $400,000 where the buyer’s agent is taking 1%.  We sold a home on Woodbridge in Buffalo where the buyer’s agent took 2%.  40 Chapel Woods West just sold for $285,000 where the buyer’s agent took no commission (because even though the seller was offering a commission to buyer’s agents, the buyer came directly to the listing broker). I recall a home in East Aurora which sold for over $150,000 in which the buyer’s agent took 1.5% (the interesting thing about that sale was that the same real estate company that took the 1.5% had been the prior listing broker asking 6%). In Rochester we just sold a home on Seawatch Trail for $250,000 in which there was no commission at all to the buyer’s agent (of course, many, many America’s Choice homes are sold commission free).  The last four Rochester area sales with buyers agents commission being paid all had commission paid to buyer’s agents of between 1 and 2.5%. That is it.

What does this tell you?  The buyers know your home is for sale because of your or your listing broker’s efforts.  With regard to the MLS, a good listing broker is imperative, as the listing broker is responsible for advertising your home, including the Internet, and for taking the calls and emails from potential buyers.  The MLS is only as good as your listing broker (because the listing broker’s name and phone number is the only one to appear on Realtor.com and other MLS sites).

You do not HAVE to offer a commission to buyer’s agents to increase the number of people seeing and making offers on your home.  Potential buyers will find a way to see  your home if a buyer’s agent does not want to show it.

Think about England and France where real estate commissions are around 2.5% total – just like 2.5% Real Estate Direct.  The combination program between 2.5% Real Estate Direct and America’s Choice can bring the commission down to 1%.  Use your analytical mind to see through fear mongering by people interested in forcing you to pay much more than you should, and I submit, much more than is reasonable.

All of the above doesn’t mean that there isn’t any reason to offer a buyer’s agent a commission.  Some sellers feel that since some buyers have been working with buyer’s agents  these sellers want to pay those agents as part of the transaction.   A good buyer’s agent can have a positive impact on your sale.  It is a choice.  I reiterate, the reason to make such an offer to buyer’s agents should not be because buyer’s agents say they won’t show your home.  Their resistance to show your home does not equate to buyers not seeing your home.  They may want you to believe it does, but there is no credible evidence to support that claim.  The offer to buyer’s agents should be for the positive role  they can play in the transaction, and the amount does not have to be 3%.

In the 30 day period from January 9-February 9, 2009 we have had vistors from all 50 states.   From which states do you think the most buyers are looking at  your home on americaschoice or keepequity? The order is: Florida, Virginia, California, New Jersey, Maryland, Ohio, Illinois, Washigtion, Texas, North Carolina and Michigan. Why?  Notice the top three are states where prices have really fallen and where prices have been high.  Could it be people are returning to the area for affordable housing while they regroup during these difficult economic times?

We had viewers from 20 Countries. The top?  Canada, United Kingdom, Netherlands and Ireland.

We received ten of thousands of visitors during this period with 41% being new visitors each day and the rest returning visitors.  53% of our visitors came directly from knowledge of our websites.  This means our constant advertising of our site drew them to your  home.  32% came from search engine optimization. This means we are able to identify the search terms buyers use on google and other search engines and draw them in to our site.

What we know from our vast experience is that being on the web is not enough.  Being on  a site that draws buyers it the key to success.

Interesting how 2008 ended and how 2009 is beginning:

Syracuse:Anna Phillips had a rash of really good sales in November and December of 2008.  She sold a property on Gaskin Road in Baldswinville for $300,000 and property on Mourning Dove in Baldwinsville for over $300,000.  Mourning Dove had two offers.  On top of this Anna sold four more homes.  Linda Pacelli has listed property on Cazenovia Lake for over $500,000 and some other really nice properties.

Rochester: I spoke with a gentlemen from Brighton about two weeks ago.  He explained to me that he had been listed with a high commission real estate agent for six months with very little action.  I explained our tag team program utilizing both America’s Choice and 2.5% Real Estate Direct.  He listed with us at the end of January 2009 and just yesterday I was informed that he has accepted a contract for $294,000.  Congratulations!  He understood that between America’s Choice and 2.5% Real Estate Direct he could obtain more exposure than offered through the traditional real estate companies.  The reason is simple: we offer more direct advertising on the Internet and in print and we combine that with the MLS.  No one offers as much no  matter what they charge.  50 Sea Watch Trail in Penfield sold through America’s Choice in January of 2009 for $250,000 with no commissions paid. They had listed with us in late November of 2008.  So they sold right in the heart of winter!

Buffalo:  Royal Woods is an upscale neighborhood in East Amherst.  Both America’s Choice and 2.5% Real Estate Direct had great success recently.  37 Contessa Court sold for over $300,000 at no commission through America’s Choice in about a month. This was the 3rd home sold by this seller with America’s Choice within the last four years.  All of the homes were in the $250,000 to $325,000 range.  Each time he has sold commission free. 

Sue Chaskes of 2.5% Real Estate Direct sold 169 Viscount for $378,000 in December of 2008.   Sue also sold a home in Forest Heights that just closed for $275,000.   Barb Murie just sold 4 homes this week.  Barb sold over $10,000,000 in 2008.   In mid-January 2009 Barb sold 29 Ashwood Court in Lancaster for around $290,000 on a contingent basis to a buyer who chose to use the combined America’s Choice/2.5% program to sell their home.  Just this week there were two offers on the buyer’s home. The seller chose the better offer and will be proceeding to complete the purchase of Ashwood.    A home on Winterwood in Tonawanda listed on January 20, 2009 and is already sold.  The seller told us that her relatives said a  home could not sell in winter!

So the cold continues as I write today.  It was -4 degrees this morning. However, the sun is shining as we move towards the Spring market.

The newspapers continue to report that home sales are relatively stable in Rochester and Buffalo and that prices are even on the rise.  I just read that in the Buffalo News this morning. A reason for this “news” is that Buffalo and Rochester are not large enough to be included in a very important index- the case-shiller home price index. This index reports on the change in sales price of homes that have sold multiple times.  It is the best way to gauge what is actually happening.  So let us look at an example of a home in Lancaster, NY.

The post below was first published on August 5, 2008 but is being re-published in response to recent media attention to the state of residential real estate.  An October 29, 2008 article titled “Homeowners’ Perception of home values not grounded in Reality” by Susan Miller published in Bizjournals has been discussed in numerous forums, and has appeared in the New York State Association of Realtors web site.  By the time homeowners finally accept the fact that their home will not command the price they optimistically believe it is worth, – an assessment typically based upon emotion, e.g., I saw my neighbors house sell last year for $325,000 and my house is nicer, or based upon statements by real estate agents trying to get a listing, e.g., your home is well priced, my marketing plan can get you the results you need ( what we call puffing a listing appointment) – the homeowner is stuck in a long six month listing and is forced to accept a lower price and pay a ridiculously  high commission just to receive the low price. Read about a story that illustrates this point:

The uncertain economy coupled with losses incurred by many people in securities held for growth or retirement has impacted many of us in the real estate community.  I notice that many long time agents with status quo real estate firms have had their worst year – although they will most likely not admit to it.   Many agents have left the industry or have gone to a “referral status,” meaning they are unwilling to pay the real estate board membership fees.

Yet, many of our agents have had a record year.  Sue Chaskes in Buffalo is constantly selling homes.  She just sold 125 Crestwood Lane for $275,000, 2 Brompton Woods for $350,000, a lot for building, two homes that were refurbished by investors who bought distressed properties, a condo, and many more. She just listed a home for over $400,000 that just expired from a listing with another broker.  Her phone rings all the time and she is showing homes almost daily.  She is working awfully hard and getting results. 

Barb Murie has had an incredible year mostly in the southtowns region of Buffalo.  Take a look at some of her sales on our website at keepequity.com.  She will be our top producing agent – millions of dollars of sales.  Her phone rings constantly and I see her react quickly when sellers and buyers call.  I have had other agents ask how she does it.

Both Linda Lehtonen and Alyssa Hedges have been awarded the coveted Master Sales designation from the Greater Rochester Association of Realtors.  They will be honored at a ceremony in November.  The award is given to realtors reaching over $5,000,000 in sales.  Take a look at their production on our website or pick up a copy of Your New Home Magazine in Wegmans.  Susan Payne in Rochester has had her best year.  She is diligent, responsive and knowledgeable.

So what is it? Why are these agents prospering?  Well, I see a few common factors.  First, these agents are all good at what they do.  They are true hard working people. They have made a true commitment to making real estate part of their lifestyle.  It is okay for them to show homes all weekend, nights, and to take calls at all hours.  Each of them is strong and willing to take on the pressure from other agents who do not want to see real estate commissions fall from 6% or 7%.  Simply put, they are not going to make friends in the status quo real estate community. It is not status from other realtors that drives these agents. Rather, they are selling more real estate, making more money, and keeping busy notwithstanding the economy. 

So, they have to be good at what they do. 

Another common factor is that these agents are not greedy.  They are willing to work hard for America’s Choice customers by entering into a unique listing agreement.  This means that our agents are willing to take the listing, enter the information into the MLS, take the phone calls and emails, work with buyers,  negotiate and draw up contracts all for 1% of the sales price.  They have to work these listings, but since the seller is willing to do the showings and appearances, there is a lesser driving and time commitment.  Other agents are unwilling to offer such services. 

Again, our agents have to be good.

In its September issue, Consumer Reports magazine reveals the results of its poll of more than 9000 home sellers.  The results show consumers are equally satisfied with the service provided by companies that charge 6% or 7% and with the service provided by companies charging less.  That makes absolute sense to me because there is no correlation between charging 6% or 7% and the level of professionalism and service to be provided by a real estate company.  In fact, research conducted by university professors concluded that it was not the level of service to be provided or the cost to provide the service that explains that continuation of the 6% or 7% commission, but rather, it it simply anti-competitive behavior.

The July 16, 2008 Buffalo News page one article about Google’s street views was interesting and brought up some food for thought.  The jist of the article was about privacy issues and how people are using street views.  America’s Choice and 2.5% Real Estate Direct’s incorporation of Google’s street views into our system was discussed and highlighted. I was asked to comment about it.  Most people find street views and satellite views helpful and interesting.  I will keep  you up to date.