For Sale By Owners: You've Got Options

By
Real Estate Agent with Keller Williams Realty

For Sale By Owners:  You've Got Options

Since the beginning of Bham WIiRE's existence, our motto has been "You've Got Options" and now, I am glad to say that you have even more options.

ACRE logoI've recently become an Accredited Consutant in Real Estate® (ACRE®).  As such, you've got more choices than you've ever had before as it relates to the approach that you use to sell your home and how you pay for the services that you received from an ACRE®.

We've always understood that you're just trying to save money in real estate agent commissions and I understand that many agents have resented you for that.  At the risk of being an outcast in my industry, I must say that I've always understood the need and desire of For Sale by Owners to save on commission.  Who doesn't want to save money?  I can't think of a soul.

The real dilemma for you has been "the all or nothing" approach offered by Realtors® and real estate agents alike.  You know what I mean:  the approach whereby the real estate agent is fully in charge of every aspect of the process and you pay a designated commission upon the sale of the home.

For many years, if you were unsuccessful at selling your homes, you may have ultimately listed with an agent and given that one and only "all or nothing option".

As an ACRE, I can offer you more choices in ways that are important to you be allowing you to choose from a menu of services.  And the best part about that is that you get to pay for only the services that you desire.  Now before you get too excited, trust me when I say that I am not talking about taking a single penny from you just for sticking your listing in the MLS.  There are enough companies that offer that service and not much, if anything, else.

Make no mistake, I am a Realtor® and I take that very seriously.  My experience and training has prepared me to:

  1. be an advocate for you,
  2. offer you sound counsel and guidance, 
  3. offer you the representation unmatched by an untrained person attempting to sell their home and most importantly
  4. manage and troubleshoot the pitfalls known widely throughout the world that is real estate.

I've been trained to do far more than that and as a practicing Realtor®, my experience counts for far more than you think.  Sure you'll save money, given your options, but that is not synonymous with discounting. There are many that won't grasp the concept of consulting services including real estate agents.  But think about it, those are the same people who didn't believe that FSBO websites would proliferate the way that they have.  Those are the people who are all to comfortable with the "way that things have always  been done."  And it's quite possible that those are the people who fear change and the unknown.

One thing I know about you already, as a For Sale by Owner, and that is without having met you, I know that you don't fear the unknown.  Heck if you did, you wouldn't be trying to sell your own home.   Am I right?

Thirty minutes of your time.  That's all I ask.  Contact me today at 205-321-1200 and let's talk about those options that you never knew you had.

We're everywhere.  There's an ACRE® near you.

Brenda Mullen in Texas     Margaret Rome in MarylandAnita Clark in Georgia

Texas                                               Maryland                                     Georgia

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Brenda Mullen 09/21/2011 02:19 AM
Topic:
ActiveRain Community
Location:
Alabama Jefferson County
Groups:
"Whacked"!!!
Bananatude
Alabama Real Estate
Tags:
accredited consultant in real estate

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Rainmaker
4,831,783
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Charita....congratulations on receiving your ACRE designation....another one under your belt....the best option is for a seller in Birmingham Al to hire Charita Cadenhead of Bham WIiRE Realty....that's the best choice.

Sep 21, 2011 01:36 AM #1
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks Barbara.  I'm excited about new opportunities as an Accredited Consultant in Real Estate.  It's time to incorporate new ideas and methods in my business.

Sep 21, 2011 01:39 AM #2
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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Awesome post Charita and gives For Sale By Owners a choice they don't often experience in this, or any other market!  Lots of luck to you.  Sellers in Birmingham Alabama should be hiring Charita Cadenhead to get the job done :)!

Sep 21, 2011 01:41 AM #3
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Best wishes to you too Brenda.  We are agents of change.

Sep 21, 2011 01:44 AM #4
Rainmaker
1,109,329
Paula McDonald
Magnolia Realty ~ Granbury - Granbury, TX
Magnolia Realty ~ Granbury, TX 936-203-0279

Very nice Charita and way to go on that new designation.  If I ever have a referral in your area I will be calling upon you!

Sep 21, 2011 01:50 AM #5
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks you Paula.  Referrals are ALWAYS appreciated.

Sep 21, 2011 01:54 AM #6
Rainmaker
99,808
Mollie Wasserman
Your Move Made Simple - Framingham, MA

As the founder of ACRE®, I can tell you that Charita gets it! What she (and other ACRE®s) offer is quality, transparent choices in what services you can receive and how they can be paid for. Unlike discounters or third-party companies, consulting services are all about providing you the representation, guidance and advocacy that only a trained professional can provide. Consumers in AL should call Charita!

Sep 21, 2011 01:57 AM #7
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks Mollie and you've certainly got it right:  I do "get it." For years I've been avoiding FSBO because I had nothing new to offer them. But as an ACRE® new avenues are open for both my business and more importantly the FSBO.

Sep 21, 2011 02:03 AM #8
Rainmaker
1,045,281
Fred Carver Personal Real Estate Corporation
RE/MAX Camosun Victoria BC Real Estate - Victoria, BC
Accredited Real Estate Consultant

Hi Charita...Congratulations on getting your ACRE. Brenda Mullen sent me over with her re-blog. Now a days consumers not only want choices they expect them...Better to offer our services to our clients before they choose someone else. Plus as an ACRE you'll get paid for your time...gotta like that!

Sep 21, 2011 03:36 AM #9
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Fred "like" is an understatement.  I gotta "love" that.  Thanks Fred.  I think they have always wanted choices, but we haven't always given them the choices that they needed.

Sep 21, 2011 03:41 AM #10
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Charita - I doubt that you'll ever "be an outcast" in this industry - you're adapting to changing market conditions and changing client needs. Whatever part of the industry doesn't get that isn't going to be around very long anyhow. Best of luck and much success!

Sep 21, 2011 04:01 AM #11
Rainer
264,127
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Congratulations Chrita.

I'm also an ACRE, and I'm still asking questions. Here's one for you that was triggered by Paula's referral comment in #5

Here are the Assumptions:

  • The average buyers agent commission (contingency fee) in your area is 3% and 2.5% for short sales.
  • The homes in your area sell from $100-$300k
  • Paula, in comment #5 sends you a referral and wants a high 30% fee
  • The client wants to buy a short sale $150,000 home
  • Your consulting (pay by activity) fee is going to amount to $1,875 with $1,875 going back to the buyer.
  • Paula gets $593, (30% of 1,875)
  • Your gross is $1,312

Is it worth your time to accept this referral at 30% and work with the client on a pay by activity basis, or would you need to work on the commission (contingency fee) basis in order to make this transaction profitable?

Or would you need to charge a higher activity fee to this buyer?

 

Sep 21, 2011 04:17 AM #12
Rainer
120,860
Cathy Perry
RedKey Realty Leaders - Wildwood, MO

Charita, welcome to the ACRE community!  You are offering your Birmingham clients a great menu of options to choose from, and helping to change the way in which we conduct our business.  Best of luck to you!  I look forward to collaborating with you and our fellow ACREs.

Sep 21, 2011 04:54 AM #13
Rainmaker
570,120
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA
Charita....I think consulting is going to grow even more in the future. Good for you for getting that designation. As an attorney, I must say I am not big into the various designations but this one appeals to me.
Sep 21, 2011 05:43 AM #14
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks Dick.  I appreciate that.  There are always naysayers and I hope my encounters with them are kept to a minimum.  I think that in many cases, we've been trapped into using a method that just isn't working for anybody.

Bill I'll start with the last question and the answer is that I would definitely not charge a higher "activity" fee just so that I can compensate the referring agent..

Now moving backwards from there:  course it's a case by case basis, but in your scenario, I would encourage a 20% referral fee which I am sure would probably be agreeable given the source of the referral.  I think 20% is a reasonable referral fee regardless of the circumstances.  For the amount of work that we do for a client, I believe that 30% is far to high given the extensive nature of the service that we provide.  In your scenario, I could live with that outcome, but my goal would be to encourage 20% referral fee.

The consulting model will not work in every situation whether it be referral, for sale by owner, buyer or traditional seller and that's the beauty of being an ACRE, there is no mold to fit into.

Sep 21, 2011 06:05 AM #15
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thank you Cathy for the best wishes and the support from other ACRE®s as well.

Christine I think it will significantly change the way that we do business.  I would encourage you to check ou the ACRE® program. 

Sep 21, 2011 06:08 AM #16
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1,892,884
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Charita-I'm an ACRE too.  If you ever have someone in VA who needs help please let me know.

Sep 21, 2011 09:10 AM #17
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758,687
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Cindy I noticed that the other day when I was on the Consulting Times website.  I meant to click on your link but I was so enthralled in all of the info, I actually forgot.  Will do on the referral.

Sep 21, 2011 09:16 AM #18
Rainmaker
861,100
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING CHARITA!  Very nice!  Congratulations.  I read your blog often and all your information and post is so diverse and useful!  Lucky for those in your area that you are available and accredited in various aspects - and as such can design a plan that suits a clients needs! 

Sep 23, 2011 12:19 AM #19
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks Gabrielle.  It certainly adds a whole new dimension to the way we do business and the services that we offer people.

Sep 23, 2011 01:01 AM #20
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