Nucazza Seeks to Educate Home Buyers About Benefits of ‘Alternative Compensation’ Real Estate Agreements

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Alternative compensation real estate agreements give both home buyers and their buyer's agents greater financial benefits over more traditional commission-based sales models by reducing home purchase costs and increasing the percentage of hours that agents get paid for their time and expertise.

“We like to think of it as ‘ala carte’ real estate. You buy just the support you need as a home buyer and the people you work with get paid for their services just like any other professional you might hire.”

Nucazza, LP, a company specializing in providing education to different sectors of the real estate market has released a series of videos and other educational materials on their site which focus on the use on ‘alternative compensation’ real estate models as a way to financially benefit both home buyers and the real estate agents they work with.

Alternative compensation models are based on creating added value for home buyers by eliminating the commission payment that is traditionally paid to the real estate agents who help them buy a home. Instead, that money gets returned to the home buyer at closing as either a rebate or as a decrease in the purchase price of the home. In short, home buyers who work out alternative compensation agreements with their buying agents stand to save thousands of dollars on the price of a home compared against those who use traditional commission models instead.

But how does this type of agreement benefit the real estate agent? Nucazza CEO Glenn Freezman explains that “Real estate agents are constantly playing a numbers game in which all the risk for getting an agreement to the closing table is placed on their shoulders. Currently about ¾ or all home buyers that a buyer’s agent starts to do business with never makes it all the way to closing. That means that 75% of an agent’s time working on things that don’t earn them a cent, regardless of how much work they put in. “

“On the other hand, more and more home buyers are getting savvy about the home buying process, largely thanks to online resources, and can take on a lot more of the home buying tasks that traditionally would have been the responsibility of their agent. With increases in home prices we have also seen an increase in commission prices but for many home buyers, especially those taking on home buying responsibilities themselves, it becomes of question of equity – is the amount being paid to the real estate agent really in line with the work they did on behalf of the home buyer? In most cases, the answer is no. But what most home buyers aren’t aware is that every deal that a buyer’s agent closes also ends up playing for 3 that didn’t. While this helps the real estate agents make a living, it is still unfair to home buyers.”

With alternative compensation the home buyers agree to pay the agent directly for their time and service either hourly or by the task. This means that the agent gets a guaranteed payday for every client they work instead of needing to rely on contingency payments that may or may not arrive. It also means that home buyers can pay for only the professional services that they need while also saving money by taking on other tasks and responsibilities themselves.

“We like to think of it as ‘ala carte’ real estate. You buy just the support you need as a home buyer and the people you work with get paid for their services just like any other professional you might hire.” Freezman says. “Everybody walks away a winner in this scenario. And in situations where a home buyer feels more comfortable in paying a straight commission at closing it’s not a problem for the buyer’s agent to offer a traditional commission deal instead. Alternative compensation agreements may not fit all needs but can certainly help many agents create a new stream on income if used properly.”

Nucazza, LP, invites home buyers and real estate agents interested in learning more about alternative compensation models and how they can be used to visit their lender and home buyer facing site at http://www.nucazza.com and the real estate agent facing site http://www.homebuyingevolution.com to learn more.

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Glenn Freezman
Nucazza
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