Should I use the same agent to sell my home and be my buyer's agent for my new one?

We would like to put our home on the market and buy a new one. With only a certain amount of equity in our home I had considered trying to sell it myself to save on the commission so we will have enough for a down payment on our next home. Recently though, a Realtor told me that sometimes Realtors can list your home for a smaller commission (at 5% with 3% going to the Buyer's agent) and then act as your buyer's agent with a 1% rebate to you for closing costs (they then get 2% as the buyer's agent). This sounds like a good idea to me, but I was wondering if there is a drawback to using the same agent to sell your home as the one you use to buy your next home? Since we cannot buy our next home until we sell this one, it seems like a great motivating factor for the agent to get ours sold as quickly as possible. Any insight on this? And is this a common practice of discounting the service fees?

Thanks,
Amy,  Woodstock, GA

Dear Amy,

I would strongly recommend that you find an agent you like and trust to help you sell your current home and buy your next home, provided you are staying in the same area. If you are moving to a new area, I would ask your selling agent to recommend someone in the area you are relocating to.

As to the practice of discounting the commission if the same agent handles both transactions, I see nothing wrong with that. That is an individual choice each agent, along with their broker should make.

Some have said that because an agent will negotiate on their own commission, that they would not work as hard for their client as someone who would not. Speaking only for myself, I would respectfully disagree because my work ethic is not determined by my commission, it is determined by my character. If I agree to accept a lower commission because my client has agreed to work with me to buy and sell their next home, I will do my best to look out for my clients best interest regardless of that agreement. Accepting that agreement binds me to do the very best I can in all that I do! I know that if I serve my client well and they make a successful transition to their new home, I get the satisfaction of knowing I did a great job for them. I also hope they would be able to recommend me to their family, friends and neighbors as an agent who is committed to the highest quality work ethic and that I did my best for them every step of the way!

 

Michael Bradford

Interest rates are on the rise!

Interest rates are on the rise which could make your buying power go down. With every 1% rate increase, the typical borrower loses 10.75% purchasing power.* That means if you could afford a $100,000 home at 4%, you could potentially lose $10,750 of buying power and now only qualify for a $89,250 house at 5%.

That is not good news to buyers or sellers today. Sellers, who have been optimistic recently because of increased demand and some appreciation in home values, are affected by rising interest rates because it limits buyers choices in which homes they can afford. Buyers are affected the same but feel the pain for a much longer time, say 30 years or until they can refinance at some point in the future.

Depending on who you listen to, rates will go up a little or a lot! But most agree, upward is the trend for the spring, 2014 season.

If you need to buy or sell a home, the best window of opportunity may be right now. Rates are still low enough to make home ownership more attractive than renting and springtime is the most active season for buying and selling. 

Call me today and let's get started!

Michael Bradford

770-862-8002

* themortgagereport.com 6/23/2013    

Why sell your house to a licensed real estate broker?

First of all, I buy houses, any house, in any condition, quickly, without any real estate fees due from you. I am not looking to just "list" your house for sale but that may be the best solution for you. If not, I can buy it directly and can close in as little as 5 business days.

So why should you sell your house to me instead of an unlicensed investor? I am governed by the rules and regulations of the Georgia Secretary of State and there are specific rules that I must obey when buying or selling real estate in Georgia. I have been licensed since 1998, active and in good standing.   

I buy houses mostly in Cobb and Cherokee counties but will consider North Fulton, Bartow and Pickens counties.  I may be able to help you with your property even if you have negative or no equity.

So if you have a house that is keeping you from moving on with your life, call or email me today and I will try my best to solve your real estate problem fast!

Michael Bradford, Broker

Southern Prime Realty

770-573-2507, office

770-862-8002, cell

Upside down?

The real estate market has turned around. At least that is what the media keeps telling us. But we all know that real estate is about location, location, location...oh, and when we want to sell, it is also about how much we owe, condition of the home and what else is available in our market.

Yes, prices have gone up, but they have not recovered to the prices we saw just a few years ago. Just ask someone who bought at the peak of the market and has tried to sell since then.

I may have a solution for those who would like to sell their house and move on with their life but can't because they have negative or no equity. This program is not for everyone, but it may be perfect for you or someone you know who has tried to sell and found they couldn't even afford to pay the real estate commission. Give me a call and let's see if I can help you. I do not want to list your house or charge you a commission. I want to buy your house, today! Let's talk and see if we can get you right side up! 

Michael Bradford
770-862-8002