Show me the money!

It gives me tremendous pleasure to go against the advice of all marketing, advertising and Real Estate firms here! I apply the Golden Rule to my practices and simply put, I wouldn't have it any other way.

My doctors, attorneys, CPA and dentist never hide their professional fees from me. Why should a Realtor? Here are a couple of actual forms that I provide for all my Clients. The first I have titled "How does the Brokerage fee work?"

The Real Estate community, as a whole, throughout the State and Country generally charge between five to seven percent for professional services, depending on the specifics of the sale. Is the property vacant? Is the Agent responsible to manage and maintain the property? Who will keep the yard and interior clean? Is the client out of the country? There are many variables. For example's purposes, I will use six percent, since this is what we charge for our services when the home will be occupied and maintained by our clients. The second item is an actual "Net Sheet".
It shows the dollar amount a seller would "walk away with" at closing, based on the most common terms: VA, FHA, Conventional loans, cash and owner finance.

 

 How does the Brokerage fee work?

 

Use a sales price of $300,000 and a Brokerage fee of 6% = $18,000
 

 

In most of the United States, the Listing Agent agrees with the seller on a brokerage fee, which is typically split with the Buyers Agent; (the Agent that procures the buyer from the Listing Agent’s marketing efforts) and then most Real Estate Firms have a fee split with the agents. So, after all of the slicing and dicing of the original fee, you can see what most Agents earn for their families. The Collins Group has a higher margin than the average Realtor because of our specialized marketing.

 

 

NET SHEET EXAMPLE

 

 

ESTIMATED NET Based on a $200000 Sale & Loan Balance of $130000 at 6.5%

Type of Financing              VA     FHA    CONV    ASSM   OWNER    CASH
Sales Price                200000  200000  200000  200000  200000  200000
Loan Balance               130000  130000  130000  130000  130000  130000
Equity                      70000   70000   70000   70000   70000   70000
-Brokerage Fee              12000   12000   12000   12000   12000   12000
-1 Days Int. Closing Mo.       23      23      23      23      23      23
-Title Insurance             1423    1423    1423    1423    1423    1423
-Attorney's Fee/warranty      175     150     100     250     250     250
-Deed of Trust/ attorney      200     150      50      50      50      50
-Recording Fee                 18      18      18      10      10      10
-Escrow Fee                   350     175     175      75      75      75
-Tax Certificates              37      37      37      33      33      33
-Release Of Lien               75      75      75       0       0       0
-Tax Service Fee              110     110       0       0       0       0
-Restrictions                  14      14       0      14      14      14
-Processing Fee               300     250       0       0       0       0
-Lenders Inspection            75      75       0       0       0       0
-Underwritting Fee            300     300       0       0       0       0
-HOA Transfer Fee             100     100       0       0       0       0
-Termite Inspection            75       0       0       0       0       0
-Collins Group Transactio     495     495     495     495     495     495
ESTIMATED NET               53881   54256   55255   55278   55278   55278
-Sellers Property Tax           0       0       0       0       0       0
ESTIMATED NET AT CLOSE      53881   54256   55255   55278   55278   55278

SELLERS PROPERTY TAX: In order to establish the buyers escrow account required to fund a new loan, the closing agent will deduct the sellers property tax through the day of close from the buyers loan proceeds. The lender will REFUND property tax & insurance from the escrow account of the sellers existing loan within 45 days.

INTEREST PRORATION: When your monthly payment is made on the 1st of each month, you are paying interest for the PREVIOUS month. At close, you will be charged for interest through the closing day.

This ESTIMATE is subject to encumbrances, such as; existing liens, possible escrow account shortages, prepayment penalty (if any), changes in closing costs, and any other claim against the property. All information was obtained from sources deemed reliable. However, Liberty Management, INC. assumes no liability.