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Ran across this on Facebook and had to share!

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Posted by on February 21, 2013 in Uncategorized

 

Do You Ever Wonder…..How Do Real Estate Agents Get Paid?

Blod - $

This is probably one question I never get asked, but I have a feeling a lot of people don’t REALLY know the answer. I wanted to clear up any myths, and help answer it for anyone who may be curious. 

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Real estate agents earn their fee through commission, after a property has sold.

The commission is typically paid for out of the sellers proceeds. The amount of the commission is negotiated between the seller and the real estate agent listing the property (listing agent), this is done at the time the listing agreement is being presented, completed and signed.  The commission is usually a percentage of whatever the sale price is. That commission is most commonly shared with another agent, the agent who represents the eventual buyer (buyers agent).

Real estate agents work for a real estate brokerage. Any fees or commissions earned have to go thru the real estate brokerage first. Real estate agents then have a commission split negotiated with their brokerage, depending on your production and/or experience these percentages can and does vary from agent to agent.

Here is an example: 

  • House sells for $120,000
  • Commission $7,200 (I used 6% for this example)
  • Lets just say the commission is split evenly, 3% each between buyer & listing agents. Each brokerage will get $3,600
  • Lets also say the agent and the brokerage have a 50/50 commission split agreement (this split also varies from agent to agent). The agents will then get paid $1,800 (before taxes of course). That doesn’t seem so bad, right?
  • Now lets say it took 6 months to sell, $1,800 / 24 week = $75.00 a week. That does not sound so great, but hopefully you have a few closing each month. 
(REMEMBER: Commission is negotiable so talk with your realtor about your goals, listing prices, potential selling price and discuss the total costs involved so you are aware)
 
There could be some addition fees that come out of the $1,800 check, such as errors and omissions insurance payments, fees to the showing services that assist in scheduling appointments (these vary from brokerage to brokerage). Some brokerages may also charge a franchise fee. In addition realtors have many other additional costs such as self promos to get the listing, gas, car insurance, health insurance, annual board of realtor dues, fees to belong to the MLS (multiple listing service). Sometimes there may be a referral fee or relocation fee that is incurred too. 
 
Agents also have to educate and coach their clients to help get the property in the best sellable condition. I feel most agents will give their clients 100% and do all the right marketing and advertising for the property. Sometimes it comes down to price, location and demand and in some cases the property may never sell and in these situations the agent will not be compensated at all.
 

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I hope this gives you an idea of how real estate agents are paid. Some people think we just throw a sign in the yard and when the house sells we get a $6,000 pay-day, that is not the case. And most of the hard work comes after the property has a contract on it.  I will touch on that more in a later post……

Have a good night!

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{GREAT New Listing in Geneva}

Expired……..

Exceptional Home that is Move in Ready!

734 Timber Lane Geneva Ohio 44041

MLS # 3370192

Timber Lane Front

Price $189,000

Single Family Property TL Kitchen 2

Year Built: 2005

4 Total Bedroom(s)

3 Full Bath(s)

App. 2200 sq. ft.

Forced Air Heat TL Great Room 2

Air Conditioning

2 Car Garage

Vaulted Ceilings

Landscaped

Out Building

 

Remarks
This home is absolutely MOVE IN ready and has it ALL! Conveniently located near Rt 90, Geneva Schools and the Spire Institute. The entire home has been recently updated with new paint, flooring, light fixtures, hardware, the bathrooms also updated with new vanity’s as well. An added Bonus is the very well built addition (2010) with a 16 x 13 Family Room. An amazing Master Bedroom with a huge on Suite 5 piece Bath, that was installed with heated floors and a custom high end shower system. The new outbuilding and landscape were added in 2010. This home features high efficiency Furnaces and C/A Units. Two car garage with extra storage and attic storage as well. Wired for surround sound and has a security system. *Wood Ridge Tax Assessment of $680 per half is billed through tax year 2014 per the Ashtabula Auditors Office & are reflected in tax amount, Property is USDA loan approved per USDA Eligibility Site*

 

 

Close to Lake Erie & Ashtabula Kent! Very Nice Home!- EXPIRED

Expired …..

1331 Westminister Ave, Ashtabula OH 44004

Price $131,500

http://1331westministerave.howardhanna.com

This charming Ranch has so much to offer! The recent owner has used this home as a Summer Get Away for the past 6 years. This home is in a great location close to Shopping, Lake Erie, and Kent State University. The living and dining room have awesome vaulted ceilings. The kitchen has tons of storage and ALL the appliances stay (including washer and dryer that are on the main floor). The A/C was recently updated in 2011. The enclosed heated Sun Room adds more living space to this already wonderful home. Concrete drive. The home offer 3 bdrms and 1.5 bath and carpet thru out. This is a MUST SEE.

(*The approximate monthly Principal & Interest payment for this property would be $476.10.This payment is based on a 30-year loan at a fixed rate of 3.5% – APR 3.563% with a down payment of $26,300. Actual lender interest rates and loan programs may vary.Loans with lower down payments are available.*)

 
 

Great Home – in Painesville Twp – SOLD

57 Coventry Dr, Painesville OH  44077

$124,900

This is a great Painesville Twp Location close to shopping and many amenities. This Spacious Ranch is situated on over a half acre. The home has so much to offer and is priced BELOW the current appraised value! The Open Kitchen over looks the Over Sized Family Room that included a newer pellet stove (purchased 04/12), vaulted ceilings and tons of hidden storage. All the appliances stay for the new owner. This home has been well taken care of and is easy to show!

 

(*The approximate monthly Principal & Interest payment for this property would be $452.21. This payment is based on a 30-year loan at a fixed rate of 3.5% – APR 3.563% with a down payment of $24,980. Actual lender interest rates and loan programs may vary.Loans with lower down payments are available.)

 
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Posted by on August 10, 2012 in Buying, Real Estate, Selling

 

Happy Fourth of July!

I LOVE THE FOURTH OF JULY!:)

It is not only America’s birthday but mine (and my twin’s) birthday too!

We celebrated with a “small” cook-out that turned into a BIG one!  It was lots of fun (and work, but worth it!), I wish we would have planned it sooner because there were people I did not have time to invite because it was so last-minute.  But I am sure we will have a few more get togethers before the summer is over!

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Yesterday to celebrate we went to a small amusement park in Erie PA called Waldmeer Water Park.  It is so fun we LOVE it there!  We have been making it an annual trip for the past 4 years.  While we are there we try to take a bike ride or hike at Presque Isle State Park.  It is so close to our home in Ohio but yet feels like you are states away.  We always find a unique restaurant to visit and we make many new memories every time we go! 

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Here are a few pic from our day! 
 
This is our annual log ride pic.  Luke and I always look terrified (every year since he was 2.5, while Cole and Jason look thrilled!).  I crack up every time I pull out the good ole Log Ride photos!  Can’t wait to show these to my grandkids one day!
 
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                       We had a GREAT day!  I am  always thankful for days like yesterday! 
 
 
 
 
 
 
 
 
 
 

* Great Chart I Ran Across on Pinterest Tonight

Which Renovations have the BEST RESALE Value??

I feel like I get asked this type of question A LOT  so when I ran across this Chart from www.elocal.com on PINTEREST today I had to share it! I think it is GREAT!

 

http://www.elocal.com/infographics/renovations-with-best-resale-value.html

 

 
 
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