SELLERS BUYERS
How is a home normally sold?
What makes Valu-net Realty different?
How valuable is exposure in the MLS?
Will listing in the MLS help me sell my home?
How long will it take to sell my home?
How much should the commission to the Cooperating Broker (buyer’s broker) be?
Will I still be able to sell my home myself?
Will I have to pay a commission if I sell my home myself?
Do I have to pay a commission to a cooperating broker?
Why not just advertise my home as a “For Sale by Owner” in my local newspaper?
May I place a "For Sale By Owner" sign on my property?
If a customer calls Valu-net Realty about my home, what will happen?
Who will set appointments for cooperating brokers wishing to show my home?
Can I extend my listing if my home has not sold?
Do I have to have digital photos of my home?
How many photos of my home can I submit?
How long do I have to submit photos?
What areas are currently served by Valu-net Realty?
Will Valu-net Realty help me negotiate with buyers, evaluate and prepare offers, and assist me in closing my home?
Will Valu-net Realty represent buyers looking for real estate?
What is Limited or Dual Agency?
- How is a home normally sold?
In a typical real estate transaction, a home owner signs a Listing Contract with a real estate broker. Typically this contract is for a fixed percentage of the selling price of the home, usually 6 – 7%. The real estate broker then enters the home into the local Multiple Listing Service or MLS. Other real estate brokers or their sales people use the information on the MLS to match real estate buyers with whom they are working to the available inventory of homes in the MLS. When another Broker (or their agent) sells the home to their buyer, the listing broker then splits his commission with the selling broker. This type of arrangement has been going on for more than 50 years and has proven to be a very productive way to sell homes. The commission is typically not paid until and unless the broker is able to sell the property thereby alleviating the seller from any financial obligations if his home is unable to be sold.
back to top - What makes Valu-net Realty different?
At Valu-net Realty, we believe the future of marketing real estate is almost exclusively tied to the internet. The internet provides many efficiencies that can be utilized to save homeowners money when marketing their homes. One of the efficiencies Valu-net REALTORS® exploit is that they work exclusively from their homes rather than big expensive offices. Buyers no longer need to make appointments to go to a REALTOR®’s office to examine the “MLS” book. They can view all the listings they want to see from the privacy of their own computer. Valu-net REALTORS® also exploit the efficiencies of the internet by utilizing our “Flat Fee” approach to providing marketing services. Sellers know exactly what they are paying for and only order the services they need. And because we know we will be paid for all the work we perform, there is no incentive for us to seek large percentage fees as other firms do to cover those listings that don’t sell. At six to seven percent, the typical commission charged by most brokers can become a financial burden that many homeowners may not be able to afford. An average priced home of $150,000 will require a commission amount of $10,500 at 7%. No wonder many people try to sell their homes themselves without the assistance of a broker! With our flat fee listing and representation fees you are only obligated to pay a one time up-front fee of as little as $99 to enter your property into the MLS. You pay the selling broker the normal ½ of the commission and our representation fee only when your property sells. This cuts your cost to sell your home almost in half. And, if you sell your home yourself, you pay NO commission!
back to top - How valuable is exposure in the MLS?
Today, 85% of all home buyers start their search online. Not with the phonebook. Not with the newspaper. Online. Where do they go? Most start with either REALTOR.COM or they go directly to the local MLS web site. The MLS (Multiple Listing Service) is a corporation owned and controlled by the local association of REALTORS®. The MLS provides a central system for sharing information on properties for sale in an area so that real estate agents with buyers can match these buyers to properties listed by other agents. All local REALTORS® know that any home listed in the MLS that they would sell to their buyers will provide a commission to compensate them for all the work they perform on behalf of their buyers. Most MLS’s have a public side to their web site that allows any person, whether they are being represented by a buyer’s agent or not, to search through the inventory of homes available in that market. Additionally, REALTOR.COM, the national web site run by the National Association of REALTORS® receives daily updates from every MLS service in the country. This site is to the real estate industry what e-bay® is to the on-line auction industry. That is a LOT of exposure!
back to top - Will listing my home in the MLS help me sell my home?
Yes. Putting your home in the MLS system makes it available to the hundreds of real estate agents in your area. These agents have the buyers. Homes that are not in the MLS are invisible to these agents, and to the buyers they are representing.
back to top - How long will it take to sell my home?
If a home is priced correctly, it should sell in around 60 to 90 days. Your home may sell faster or slower. If your home does not sell, you can extend your listing for $99. Just execute a Listing Change Notice and forward it to Valu-net Realty.
back to top - How much should the commission to the Cooperating Broker (“buyer’s broker”) be?
Valu-net Realty recommends that the commission you offer the cooperating broker be as close as possible to ½ of the typical commission in your area. With Valu-net Realty the commission you offer is totally up to you. However, we do not accept listings offering commissions to buyer’s brokers of less than 2% or flat fees below $1,250.00. Commission rates and/or fees are negotiable, as is every element of the listing contract. Ultimately, it is your business decision how much, or how little, to offer the buyer’s broker.
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- Will I still be able to sell my home myself?
Yes. One of the options you can choose is to have Valu-net Realty forward all calls that individuals make to our office directly to you. You will then have the opportunity to show your home yourself and negotiate your own purchase contract. Most other REALTORS® require you sign an exclusive right-to-sell contract that means even if you are the primary source for procuring your buyer, you still have to pay them a commission!
back to top - Will I have to pay a commission if I sell my home myself?
No. If you find a buyer without the assistance of a REALTOR®, no commission will be owed.
back to top - Do I have to pay a commission to a cooperating broker?
Yes, but only if a REALTOR® is the procuring source for the buyer of your home. You must designate a commission or a flat fee to be paid to a cooperating broker. The amount of commission or flat fee to be paid is negotiable, as are all elements of the listing contract. However, Valu-net Realty will not accept listing contracts that offer a cooperating broker (buyer’s broker) a commission of less than 2% or a flat fee below $1,250.00.
back to top - Why not just advertise my home as a “For Sale by Owner” in my local newspaper?
Almost 80% of all buyers use real estate agents when buying a home. A “For Sale by Owner” listing in the newspaper misses those buyers. Additionally, classified advertising rates for even the smallest ad will cost hundreds of dollars for daily exposure for even a few weeks.
back to top - May I place a "For Sale By Owner" sign on my property?
No. The MLS service will not permit your listing to be viewed on its public side (it will only be visible to member REALTORS) or on REALTOR.com if you display any other sign other than Valu-net Realty's sign. Additionally, any advertising you do on your own must NOT contain the MLS number assigned to your property.
back to top - If a customer calls Valu-net Realty about my home, what will happen?
Valu-net Realty will refer all inquiries about your home from buyers not represented by buyer’s agents to you directly if you choose to NOT have Valu-net Realty act as limited or “dual” agents. A Valu-net REALTOR® can be designated to dispense information and show your home on a “per call fee” basis of $100 per showing if you are unavailable to take calls or be present to show your home. Valu-net REALTORS® will defer any questions about price considerations or other issues of purchase negotiations to you when you return. All inquiries about your home from buyer’s agents or from individual buyers when you have permitted Valu-net Realty to act as limited or “dual” agents will be handled by a Valu-net REALTOR®. If a Valu-net REALTOR® is successful in selling your home then all your representation fees will be waived.
back to top - Who will set appointments for cooperating brokers wishing to show my home?
Cooperating brokers will call Centralized Showing Service for showing appointments. You will then be called by this service to schedule the showing. This service will solicit feedback from each REALTOR® who shows your home. This feedback will be available to you on their web site.
back to top - Can I extend my listing if my home has not sold?
Yes. Listings can be extended if an executed Listing Change Notice and the listing extension fee of $99 is received in the Valu-net Realty offices prior to listing expiration.
back to top - Do I have to have digital photos of my home?
No. Any recent color photograph of your home can be used. Just mail in your photographs to Valu-net Realty, 616 Robin Drive, Ellettsville, IN 47429. Remember to clearly mark all photos with the property address. It is preferred that you would send a digital picture if available… we will provide you with the appropriate e-mail address to send it to after receipt of your Listing Contract.
back to top - How many photos of my home can I submit?
Valu-net Realty accepts up to six (6) photos for every listed property. Additional photos, up to the maximum allowed by the MLS (16), can be added for $5 each.
back to top - How long do I have to submit photos?
Valu-net Realty must have at least one (1) photo of the front exterior of your home within three (3) days of the acceptance of your listing. Late submission of photos could incur fines from the MLS system, which are the responsibility of the home owner.
back to top - What areas are currently served by Valu-net Realtors?
Valu-net Realty currently accepts listings in Monroe, Owen, Lawrence, and Brown counties in Indiana for placement in the Bloomington MLS. Other areas will be added soon, so check our web site at http://www.Valu-net.com for updates.
back to top - Will Valu-net Realty help me negotiate with buyers, evaluate and prepare counter offers, and assist me in closing my home?
Yes. Valu-net Realty will provide you representation, whether you are selling the home yourself or through a cooperating broker. If you sell your home yourself then having us represent you is optional; if a cooperating broker sells your home then we must represent you as required by Indiana law. You may choose itemized representation where you are charged $150 per buyer and then $25 for earnest money escrow and $125 for HUD Settlement Statement review and attendance at closing, or, you may choose the Packaged Representation which is $500. Both the itemized and the Packaged Representation fees are payable at closing. However, if a deal falls through when the Itemized Representation is chosen then the $150 fee and the $25 earnest money escrow fee become due immediately. When the Packaged Representation fee is chosen there are no charges if a deal “falls through."
back to top - Will Valu-net Realty represent buyers looking for real estate?
Yes. Valu-net REALTORS® will represent buyers in real estate transactions. However, if you do not approve of limited or “dual” agency then Valu-net REALTORS® will not represent buyers who may have an interest in your property. Valu-net Realty will forward all inquiries to your property by unrepresented buyers directly to you. If limited or “dual” agency is permitted and a Valu-net REALTOR® procures the buyer for your home then Valu-net Realty will waive your representation fee.
back to top - What is Limited or Dual Agency?
Occasionally, the same broker or agent that represents the seller will also represent the buyer of that seller’s property. This arrangement also occurs when brokers or agents from the same firm each represent the seller and the buyer in the same transaction. In Indiana, this may only occur if both the seller and buyer permit such a relationship in writing prior to its occurrence. In this type of agency the broker or agent has agency duties to both seller and buyer which may be different or even adverse. If limited agency arises, the broker or agent shall not disclose the following without the informed consent, in writing, of both Seller and Buyer: (a) Any material or confidential information, except adverse material facts or risks actually known by broker or agent concerning the physical condition of the property and facts required by statute, rule, or regulation to be disclosed and that could not be discovered by a reasonable and timely inspection of the property by the parties, (b) That a buyer will pay more than the offered purchase price for the property, (c) That seller will accept less than the listed price for the property, (d) Other terms that would create a contractual advantage for one party over another party, (e) What motivates a party to buy or sell the property. In a limited agency situation, the parties agree that there will be no imputation of knowledge or information between any party and the limited agent or among other licensees.
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