Tuesday, July 1, 2008

Junk Fees

You may have seen my addition to the web site that states we do not believe in junk fees. Let me explain a bit more.
Seems that with the ever increasing competition in this, and other business', many agents and brokers have advertised lower fees and commissions to entice clients to use their services. However, the cost of doing business, any business today, has not gone down. So these "discount" brokers start to add a menu of fees instead of straight up commissions. In fact, in many cases the menu pricing can far exceed a normal commission and cost the savings minded consumer much more in the long run.
Don't "discount" the fact that discounted commissions will come with discounted service. You may find the rare start up that has the time to provide good service at a discount. But at some point you are not getting experience or full service.
In today's very competitive market, you can not afford to risk your home's sale or your largest personal investment to a discount service provider. You do not save money when your house sits on the market for weeks, or months, longer due to a discount program that fails to advertise and market (both of which do cost money). The same with a home purchase - do you think you will really save money when you are about to make your largest single investment and not get full service, experience, and support? Will your agent really negotiate in your best interest when they are not getting a full payment?
Think about professionals in other regulated areas such as lawyers, or insurance agents - how many discounts and rebates do they offer for full service? You expect them to have the resources and experience to serve you without asking for a rebate.
So, back to the original premise - No Junk Fees! Don't be fooled by so called "savings" when you may be paying more in added fees than if you had contracted with a full service, full time Realtor. If an agent tells you that they have an "Admin fee" of "only $195" and are getting a commission, ask them why.
If they are offering a discount or a rebate program and start adding service fees, then you know there is no real discount.
It is competitive out here, so watch what is going on. Ad if you are in the area, call to set up a time to discuss this, or any real estate idea, in depth. Look forward to hearing from you!