Because the buyer’s agent has already been paid for their services in full, the money that is traditionally earmarked as a commission for that agent is returned to the home buyer in the form of a rebate or a reduction on the overall cost of the home.
Horsham, PA (PRWEB) September 19, 2011
Home Buying Evolution, a company that serves as an intermediary to match in-market home buyers with licensed Realtors, has announced its introductory phase for creating a database of area Realtors interested in taking part in a new referral program.
Home Buying Evolution, and sister company Nucazza, LP, are working together to create opportunities for Realtors willing to offer home buying clients alternative compensation real estate agreements as an alternative to more traditional commission-based real estate agreements.
Alternative compensation agreements 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.
As Home Buying Evolution CE0 Glenn Freezman puts it "The theory is simple. The home buyer pays for all the services provided by his or her agent as the services are rendered. The buyer and the agent agree on a contracted price. By the time settlement occurs, the Realtor is paid in full for all the work provided, just like any other contracted professional agreement such as an attorney, a doctor or even a plumber.
“Because the buyer’s agent has already been paid for their services in full, the money that is traditionally earmarked as a commission payment for that agent is then returned to the home buyer in the form of a rebate or a reduction on the overall cost of the home. The result is that agents get paid for their time when services are rendered and not based on a contingency plan and home buyers now have an option of buying just the home buying support and services that they need while also having the potential to save thousands of dollars on the purchase of their home. It's a win-win situation for both sides.”
A recent marketing partnership with Citibank will help home buyers cover upfront costs by offering a credit card with the necessary balance needed to pay for the services of the buyer’s agent upfront and therefore alleviate the issue of requiring that buyers have cash on hand to prepay for their agent’s services.
Freezman points out that not only does this eliminate a huge bottleneck for many buyers but also creates a new relationship between home buyers and their agents. “Because traditional commission models only pay the agent when the home sale is complete, many Realtors waste time and money working with clients who will never make it to the closing table. Not only does this mean that the realtors are taking on all the risk of the home being bought, but also puts them in an unenviable position of having to constantly push the home buyers toward the closing table.”
“By being paid for the work they do when they do it, Realtors no longer need to focus on getting their clients to the closing table in order to get paid for their time and services. They also eliminate the risk they traditionally take on because the onus for buying the house now sits squarely on the shoulders of the home buyers. Also, the Realtor’s services become part of the real estate process and not part of the home sale which allows them to step out of ‘salesperson’ mode and to instead serve more as an advisor or consultant to help assure that their clients get the best deal possible.”
Home Buying Evolution's initial goals are to create a realtor database that they can use to provide in market home buyers access to buyers agents who understand alternative compensation models and you're willing to work with them on a pre-paid service model in exchange for a commission payment rebate.
Pennsylvania and New Jersey licensed Realtors interested in learning more about how they can get their information added to the home buying evolution database for free, should visit http://www.homebuyingevolution.com or call Glenn Freezman at (855) 682-2992.