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| FEE’S FOR SERVICES
Why would I choose to work on a "Fee For Service" basis? Fee for service allows a real estate professional to focuses on meeting the real estate needs of today’s savvy consumers. We analyze the consumer’s needs and deliver cost-effective results based on “unbundling a la carte” real estate service, also known as FEE FOR SERVICE. A Fee For Service real estate consultant is a new breed of real estate professional that consults and does not sell, guides and does not tell. Working with a real estate consultant is much more similar to how you contract with a doctor, lawyer or other professional for services. If you don’t like the high-pressure tactics of working with sales people, consulting may be a great alternative for you. Real estate consultants put you in the driver’s seat of your transaction. You choose the real estate services and components you need that match your budget and capabilities. A real estate professional can assist you outside of the listing/selling process with services such as: · Improve vs. Move (Should I move or remodel?) · Remodeling (advice, information on what recoups costs) · Evaluating real estate holdings to maximize profits · Solutions to sidestep foreclosure/work with lenders · More than 200+ smaller categories of real estate problems · Comprehensive Market Analysis · Making My Home More Marketable (for the For Sale By Owner) So, is it like I’m getting a discount? No, consulting is not discounting. Discounting implies taking less for the same level of services but it would be virtually impossible for any business model to provide the same level of service ongoing for half the price. Think of discount airlines versus flying first class – there is a huge difference in the level of quality and service received. Discounters depend on volume and mass production, NOT quality or service. What’s the difference between Commissions and Consulting/Fee for Service? The commission model is based upon a desired set of results that may or may not happen (contingency). In the traditional real estate commission model the REALTOR® bears all of the responsibility and risk for getting your home sold. A tremendous amount of time and money are spent upfront by the REALTOR® performing tasks and services that may or may not add up to the desired results or a paycheck. REALTOR’S® spend countless hours with buyers that don’t end up buying or homes that don’t sell (most of the time through no fault of the REALTOR®) therefore; every commission dollar must offset other losses of time and money. In essence, with commissions you are helping to pay for all of the transactions that never happened. While not the most equitable solution, it’s the solution practiced by the majority of real estate professionals today. With a consultant, you pay for just the services or expertise you need, and it’s a customized set of services for each consumer. Some consumers may choose to work with a real estate consultant by the hour, some would like to choose ala Carte services, and others would like to bundle a few tasks/services together. It’s possible the consumer will complete some tasks on his or her own. The biggest plus in consulting services is that the consumer now has choices. Consultants must meet with each individual consumer and assist them in their selection of services based on their individual goals and budget. As with doctors and other service providers, services are generally paid for as you use them. So, are commissions a bad thing? Not at all. After an in depth analysis, a traditional commission may be the best choice for the consumer, but that choice is the consumers! Can I sell on my own? Absolutely! That’s the beauty of real estate consulting. You can determine just how much real estate services and support you would like. You pay for what you need without any hassles. It’s important to repeat, NO HASSLES. How are consulting services a benefit to me? Consulting services benefit consumers by providing them with choices in how they will conduct their real estate transactions and by putting them in control of their budget. Consultants get paid for their knowledge and expertise on the services you choose which can result in financial savings on your real estate transaction. What if I try using consulting/Fee for services and decide it’s not for me? Because you pay for only the services that you’ve used, you’re really not out any money and could move to a full commission model at anytime if that suits your needs. Because satisfaction is our goal, if you use our consulting services and decide at a later time to move to a full commission listing, we would be happy to provide you with a preferred commission for being an existing customer. So how do I get started? Because “one size doesn’t fit all” it’s impossible for the real estate consultant to assess your needs over the phone or Internet. The first step in determining whether or not consulting is a viable option for you is to set up a no obligation consultation. During that meeting, we will conduct a “needs assessment” gaining a thorough understanding of your real estate goals. Only after we conduct this analysis will we begin to discuss options for achieving your goals. This initial session is provided free of charge. Schedule your appointment now ryanre@pacbell.net At Ryan & Associates Realty, can save you lots of money with your ability to order "a la carte" from our menu of services. Whether you're looking for an affordable property, the lowest interest rate, or money saving advice, our goal is to help you save money at each step of the home buying or selling process. Select from the menu of services to meet your needs, and we'll help you save some money. Ryan & Associates Realty’s mission is to help real estate consumers save money. Homebuyers can save money by ordering "a la carte" from our Menu of Services or selecting one of our rebate plans from the menu of fees below. Either way, as your buyer’s agent, we have a legal obligation to get the best price & terms. The cost of using a buyer agent is already buried in the sales price of any property listed in the Multiple Listing Service (MLS), so there is no addition cost. In fact, if you are not using a buyer agent, it is like showing up at a doubles tournament without a partner! Worse, the listing agent collects both sides of the commission which we are prepared to rebate to you as discussed below! Menu of Fee's for Buyers Option 1: Traditional commission (no rebate) We take all the risk and keep all the reward. We waive the $1,000 upfront retainer fee and keep the entire real estate commission buried in the multiple listing service (MLS), typically 2.5% to 3% of the sales price. Option 2: Hourly fee with 100% Rebate At the other extreme, you take all the risk and get all the reward. Because you are paying $100 per hour as you go, the entire real estate commission - usually 2.5% to 3% of the sales price - is rebated to you upon closing. This is the best option if you are confident you do not need much help and want to maximize your rebate. Option 3: 1-2-3 Rebate (20 hours @ $3,000) This risk-sharing plan is our favorite and most popular with clients. Step 1: We create a customized home buying plan for you and collect $1,000 retainer upfront. Step 2: When your purchase & sales agreement is signed, we collect another $2,000. Step 3: Any time above 20 hours of professional services is billed at $100 per hour and is due at closing. The balance of the real estate commission is rebated to you! In summary, our payment options are based on risk shifting. If we take all the risk, we get all the reward. If you eliminate our risk, you get all the reward. If we share the risk, we share the reward! If you buy a for sale by owner property, compensation plans vary with a minimum fee of $2,000. Our minimum fee for consulting time is $500. Menu of Fee's for Sellers Task Description, Hour(s), Dollar Values First Visit: 1.0 $ 100.00 CMA: 2.0 $ 200.00 Listing appointment, 2.0 $ 200.00 measure, consultation Install sign and or lock-box: 0.5 $ 50.00 Photography: 1.0 $ 100.00 Hold brokers’ tour: 3.0 $ 300.00 Advertising preparation: & placement: 3.0 $ 300.00 Prepare brochures/flyers Including all Internet web Sites: 4.0 $ 400.00 Cost of graphics: $ 100.00 Weekly communications* 8.0 $ 800.00 Scheduling appointments*16.0 $ 1,600.00 Follow-up on showings* 8.0 $ 800.00 Negotiations: 6.0 to 12.0 $ 600.00 Pending follow-up: 6.0 to 12.0 $ 600.00 Meet with inspectors: 4.0 $ 400.00 Meet with appraiser: 1.5 $ 150.00 Review settlement: papers: 1.0 $ 100.00 Closing: 1.0 $ 100.00 * Based on a 16 – week listing period
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