By simply changing the agreement between the home buyer and the buying agent the home buyer can save as much as 3% off the cost of a house by eliminating from the price tag the agent’s commission fee.
Horsham, PA (PRWEB) September 27, 2011
Nucazza, LP, announced today that they will be presenting an upcoming webinar that will be sponsored by Citibank that will show people looking to buy a home in the near future ways they can save up to 3% off the home’s selling price. The webinar will be presented live on October 6th, 2011 at 3:00 pm EST. Registration is free and interested buyers can sign up at https://www3.gotomeeting.com/register/178278382.
The training will cover the use of ‘alternative compensation models’ by home buyers and their agents and show how this new approach can be a boon to both the home buyers and their buying agents. In this initial training Nucazza will share this understanding with all Citibank customers and show them how they can now save thousands of dollars off the price of the new home by simply agreeing to pay their agent directly for their time and expertise as a consultant and not as a salesperson. You may also attend as a guest of Citibank by joining through the links at the bottom.
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.
Nucazza CEO Glenn Freezman says “by simply changing the agreement between the home buyer and the buying agent the home buyer can save as much as 3% off the cost of a house by eliminating from the price tag the agent’s commission fee. This means that two buyers can buy identical houses only one will end up paying $400,000, because they need to cover the commission cost, and the other will pay $388,000 because that commission cost no long exists. It also means that the buyer who pays the commission probably will also roll that into a 30 year mortgage so in actuality they end up paying almost twice the cost of the commission over the life of the mortgage. So would you rather not spend $12,000 in commission costs or end up paying close to $24,000 over time to pay that commission?”
But how does this type of agreement benefit the real estate agent? 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.”
The focus of the upcoming webinar is to provide home buyers with the knowledge and understand they need to save on their next home and how Citibank can also support home buyers with support and savings in the future. Registration is free to all. https://www3.gotomeeting.com/register/178278382
Home buyers who join Nucazza can save big on their next home purchase. Not only does your FREE membership give you access to information that will help educate you on how to save a lot of money but membership gives you quick and easy access to an exclusive list of broker/Realtors® around the country who offer Task-Based Real Estate Agreements and who are willing to work with you to help you find your dream home.
Again, this is a FREE service