How to Save Real Estate Commission

Are you tired of paying outrageous real estate commissions?

It’s a FSBO myth that you can’t sell real estate without a broker. Let me show you Six ways you can save thousands of dollars.

Six for sale by owner options:

1. Sell by owner – pay no co-op to buyer agents.
2. Sell by owner – hire a licensed broker or an attorney to write your contract.
3. Sell by owner – offer buyer agents a co-op fee.
4. List as a FSBO on MLS for a Flat Fee – pay buyer agents a co-op fee.
5. List full service MLS – pay a discounted commission.
6. Sell on eBay – pay their fees.
7. Pay an outrageous 6-7% commission.

You can mix and match to come up with several ways to save commission. Based on twenty plus years of working with For Sale by Owners, I’ll give you pros and cons and make Recommendations.

1. Sell by owner – pay no co-op to buyer agents:

You sell to a buyer who is not represented by a broker. You’re not represented by a broker so there is no commission.

Pros:

o You save commission.
o You maintain complete control.
o You don’t list with a broker.

Cons:

o There could be contract errors.
o You may not have access to State approved forms.
o You are open to legal recourse.
o The contract may not be defensible in a court of law.
o Inspections and deadlines may not be addressed.
o It’s difficult to build trust with the buyer.

Recommendation:

Use plan two.

Hire an attorney or a licensed broker to write your contract. This builds trust between you and your buyer.

2. Sell by owner – hire a licensed broker or an attorney to write the contract:

This is a smart economical choice.

Pros:

o The contract will be on the correct forms.
o Required inspections and deadlines will be addressed.
o Terms are usually defensible.
o Less chance of legal repercussions.
o Less chance of contract failure.
o You can split the cost with the buyer.
o Builds trust between you and the buyer.

Cons:

o It costs more money but it’s worth it.
o You have to find a broker or an attorney who will write the contract for a reasonable fee.

Recommendations:

Do It!

3. Sell by owner – offer buyer agents a co-op fee:

This is a good option; however, agents who have buyers may not know you have a house for sale. Pros:

o You open the market to more qualified buyers.
o A licensed agent will write the contract.
o You may sell quicker.
o It costs less than a law suit.
o You don’t have to list with a broker.
o You save money.
o You maintain control.

Cons:

o It costs more money.
o The buyer is represented by an agent. You are not.

Recommendations:

Use plan two. Hire an attorney or a licensed broker to review the contract. And, if needed, write a counter offer. Now you have someone looking out for your interest.

4. List on MLS for a flat fee – offer buyer agents a co-op:

This is the best of both worlds. You remain a for sale by owner. You remain in control. And you save half of the commission.

Pros:

o Increased buyer exposure.
o 90% of the buyers buy with a broker.
o You pay half the commission you’d pay for full service and you get full MLS exposure.
o You maintain the right to sell by owner.
o Buyer agent contracts will be on the correct forms.
o If you pay for contract assistance, all forms will be correct.
o Agents call you to set showings and to present offers.
o You maintain control.
o You increase the chances of selling.
o You will get a higher price.

Cons:

o It costs you more money
o The buyer is represented by an agent – You are not

Recommendations:

Incorporate with plan two.

Hire an attorney or a licensed broker to review your buyer agent contact and, if needed, write a counter offer. Now you have someone looking out for you. It costs far less than a law suit. You save money and maintain control.

5. Do a full service MLS listing – pay a discounted commission:

This is the great choice. You get representation. Most brokers will negotiate commission. If they won’t… Find one who will.

Pros:

o You have someone to review your offers, write counter offers and monitor the closing.
o You save money, though not as much as with a flat fee FSBO listing.
o Your contracts will be on correct forms.
o Inspections and contract dates will be monitored.
o You’re less likely to have legal repercussions.

Cons:

o It costs you more money.
o You lose some control.

6. Sell on eBay:

I know nothing about selling real estate on eBay; however, I know it is popular. I’ll make some logical assumptions:

Pros: You save commission.

Cons:

o There could be contract errors.
o You may not have access to state approved forms.
o You could be at risk for legal action.

Recommendation:

At this time, I’m not comfortable recommending eBay.

There is one more option; you could:

7. Pay an outrageous 6-7% full service commission:

Pros:

o The broker takes over the sale.
o You get a sign, MLS and various goodies.
o The broker presents offers to you.

Cons:

o You pay too much to sell your home.
o You lose control.
o I could go on and on but I won’t.

Recommendation:

Sell by owner and save thousands of dollars.
Copyright (c) 2007 Wee Dilts
Recommendation:

At this time, I’m not comfortable recommending ebay.

There is one more option; you could:

7. Pay an outrageous 6-7% full service commission:

Pros:

o The broker takes over the sale.
o You get a sign, MLS and various goodies.
o The broker presents offers to you.

Cons:

o You pay too much to sell your home.
o You lose control.
o I could go on and on but I won’t.

Recommendation:

Sell by owner and save thousands of dollars.
Copyright (c) 2007 Wee Dilts

Inside Legal Shield: A Critical 3rd Party Review

About Legal Shield

Legal Shield is a company founded in 1972 by entrepreneur and visionary, Harland Stonecipher. Mr. Stonecipher founded the company after being involved in a serious vehicle accident. Although he had car insurance to assist in his vehicle damage as well as health insurance to cover his hospital bills, he was completely unprepared for the legal expenses he quickly incurred.

Mr. Stonecipher quickly realized that although the United States has long had one of the world’s most advanced legal systems offering “justice for all”, often times that justice comes at quite a steep price that the average American unfortunately struggles to afford.

He decided to create a solution and thereby offer top legal services to Americans everywhere at a fraction of what those same services would normally cost. Pre-Paid Legal Services was born.

The company expanded quickly and was even listed on the New York Stock Exchange where it was a consistent top performer. In June of 2011, Stonecipher and his shareholders completed the sale and managerial transfer of the company to Midocean Partners, making it a privately held company for the first time in a long while.

The decision to re-brand and rename the company, Legal Shield, was officially announced at the company’s convention in Dallas, Texas on September 10, 2011. Legal Shield provides its services throughout the United States as well as in 4 Canadian provinces.

Legal Shield Service Summary

Legal Shield services are available on a month-to-month basis. Members have access to a multitude of service offerings that are tailored specifically to their needs. For $26 a month, one of the most popular plans the company offers members is called the Family Plan. It provides members with 5 main areas of coverage.

The first area of coverage is preventive legal services. Members receive access to premier law firms in their state for unlimited phone consultations. Members can have wills prepared for them as well as letters or phone calls written or placed on their behalf by the law firm.

The second area coverage is for motor vehicle incidents. Members can receive representation and consultation for moving traffic violations as well as for incidents of manslaughter, involuntary manslaughter, negligent homicide, and other vehicular homicide charges.

The third coverage area is trial defense. Members receive 75 hours of their law firm’s time for civil or criminal suit consultation and representation. Additional hours are available at a significant discount of the law firms’ regular hourly rate.

The fourth area is IRS audit coverage. Members have access to up to 50 hours of a tax attorney’s assistance in case they are audited by the IRS.
The fifth area of coverage provides members with a 25 % discount of the law firm’s regular hourly rate for legal issues that do not fall within the four areas of coverage.

Legal Shield also offers its members 24/7 access to an attorney should they be detained by police, be involved in a car accident, etc.

Another one of Legal Shields more popular services is its Identity Theft Shield. For a monthly fee this service provides continual monitoring of a member’s credit profile as well as full forensic restoration services in case their identity is compromised.

Compensation

Legal Shield markets its services through a diverse network of business affiliates known as independent associates. In order to enroll as an associate one must pay a one time fee of $249. The company provides marketing materials, support, and on going training.

Legal Shield pays advanced commissions on the sale of its membership plans.These upfront bonuses can be quite lucrative allowing associates to generate large commissions paid on a daily basis. Legal Shield associates also have the ability to recruit other associates to market the company’s services and recruit associates. Associates are able to earn commission overrides on the sales efforts of those within their own personal sales organisations.

The Missing Piece

The Legal Shield financial opportunity provides associates with a fantastic opportunity to build a lucrative home-based business and achieve financial independence. However, as with any business enterprise an associate’s chances of success are directly related to hard work and effort in order to achieve maximum results.

Although Legal Shield may sometimes provide its associates with potential customers or leads the reality is that the vast majority of an associate’s responsibility is to find new customers and sales associates on their own. This presents numerous challenges for any associate especially those who have not been able to grow a business beyond their friends and family members.

However, with the dramatic rise of the internet, Legal Shield associates can now equip themselves with dynamic new online marketing strategies and approaches that will help them grow a successful Legal Shield business without having to chase friends and family members around. Mastering online marketing strategies is a critical component to success in Legal Shield and for many associates it is the “missing piece” to achieving great success with this company.

Know More About Prepaid Legal Services and Its Marketability

The idea of the home business has only been strengthened with the growth of the internet and the online marketing environment. The only issue in regards to starting an online home business is in finding a demand that needs to be met online and then efficiently marketing that demand to increase your sales.

For those individuals who are not looking to design their own business and are instead interested in making money off of a system that already exists and has proven to be successful, then prepaid legal services is for you. The industry of law is in its highest demand in history as courts are overwhelmed by the multiple legal issues individuals are turning to the court to resolve.

Every person will one day require some form of legal support and realizing this will allow an individual the understanding of the solutions offered by it. The monthly affordable payments associated with a prepaid legal plan are highly preferred in comparison to the thousands of dollars an individual would pay for an attorneys services only once.

The opportunity to make money in the prepaid legal services environment arises with the ability to make commission based on the individuals you sign up to receive this fantastic service. It offer a large variety of legal services including preventative legal service, motor vehicle service, trial defense service, tax audit service, legal shield, as well as twenty-five percent off any service that is not included in the original services. The marketability of the it is high because it is a system that is ideal of any individuals current or future legal situations.

Selling a service to individuals may not be for everyone, although every individual does wish to attain the rewards available in the prepaid legal industry and now this is possible. The prepaid legal services plan has combined with the Blast Off system of online shopping. The Blast Off system is designed to provide shopping opportunities to individuals who desire to save money when shopping on the internet. This is a free service offered by Blast Off making it marketability very simple since it requires no investment from members that you sign up.

As the marketer you will make a commission from the purchases the individuals you signed up make through the Blast Off system. To even future boost your advantages, if one of your members decide to utilize the it offered on the Blast Off website you still receive the commission as if you sold it yourself. So now as a online marketer for prepaid legal services you are making commissions on the sales made through Blast Off in addition to the commission made with prepaid legal with little to no effort on your part.