A client recently commented of how impressed she was at the fact that we have been offering a reasonable alternative to the high 6% commission for such a length of time. Indeed, Homeowners Concept is nearing the 28th year of operation in Metro-Milwaukee. Obviously, we are proud of our record, having sold tens of thousands of properties and saved well over $94 MM in commissions. That is $94 million dollars that Greater Milwaukee sellers are richer for not having to pay an average of 6% commission!

We have done this by providing more in marketing properties (the largest homes magazine and a great website with the most photos per home, among others) and having highly skilled, full time, long term agents who are truly dedicated to real estate.

This is so different than the way traditional high commission real estate works. You see, the traditional 5, 6 or 7% commission office is like a revolving door. Agents enter and leave the business constantly (ever wonder why the larger offices have to continually hire and train new agents, even in down markets?). They count on each agent to at least attract a relative/friend or spend enough money of their own to attract a client outside their sphere of influence. It takes a lot of time and money for traditional agents to convince the consumer to pay the exorbitant commissions and to differentiate themselves from the competition. Sellers for the most part end up working with a mediocre agent and paying a hefty commission.

On the flip side, our agents are all full time, high volume with many years of experience before they even start at Homeowners Concept. We have become the company that not only saves the sellers thousands of dollars in commissions but provides exceptional real estate expertise. Our long term success speaks volumes.

Besides the additional marketing we do for all the properties we have for sale via our exclusive magazine, we now also post a video of each home on You Tube. You Tube is the second most visited website after Google and is gaining traction as a gateway for real estate. All of our property videos can be found at www.youtube.com/HomeownersMKE. Barely 2 weeks old and a number of these properties have multiple unique hits.

As one can see, paying thousands of dollars less in commission to Homeowners Concept vs a 6% broker gets you not only more advertising but also a much more experienced agent. All of our agents sell 3 to 4 times more homes per year than the average agent and have been in business for 16 years vs only 4.5!

When we decided to sell our house in this current uncertain housing market we knew we were taking a risk, however, after our first meeting with Mary Skanavis from Homeowners Concept we knew we were going to have a knowledgeable and experienced professional by our side.

From the beginning Mary gave us straight-forward facts about our home sale. Unlike some of her competitors, she wasn’t telling us what we wanted to hear; she gave us a clear understanding of what our house was worth and how best to get the maximum price for the home. Together we came up with a “game plan” for how we were going to tackle our home sale. We also felt very comfortable after finding out that she is in the top 1% of agents as most of her coworkers are.

Like a good coach, Mary had almost daily correspondence with us informing us how showings went, how other houses in the market were doing and advice on how we could improve the success of selling our own home. Through that dedication we were able to sell our house remarkably fast and we sacrificed very little in the process. I cannot stress enough how thorough and involved Mary was, especially with answering all of our questions.

When it came time to buying our new house the decision to use Mary as our buying agent was an easy one.We ended up buying the house of our dreams and she negotiated the price saving us a substantial amount of money.

Working with Mary goes way beyond her expertise in the real estate industry. You can easily tell she enjoys her job and the challenges that come with it. She is very encouraging and charismatic and I would encourage anyone to work with her for buying or selling a home and the savings in commissions was a bonus.

Lisa and Mike G.

Sold in Wauwatosa/Bought in Pewaukee Using Homeowners Concept

Metro Milwaukee home values appear to have stabilized despite a daunting inventory of homes for sale. Although this is certainly good news for anyone trying to sell their home, it can prove to be quite tricky when it comes to developing a pricing strategy.

If you are unsure about the changes in home values, and how this may affect your pricing strategy, you’re not alone. Most sellers want to price their homes aggressively, and also price them to reflect the changes in buyer habits; but they also don’t want to price themselves right out of the market.

How to Develop an Accurate Pricing Strategy:

• Hire a qualified, seasoned real estate agent – This is one area of selling your home that you don’t want to skimp on. Find a top-notch agent who understands the market and will advise you on how best to present your property to the buyers. Such an agent sells a lot of properties (far more than the average), works full time and is a veteran in real estate. As many of you know, all of Homeowners Concept agents fit these requirements.
  
• Price it right – Although this may seem like a no-brainer, many sellers, absolutely sure of their ability to sell their home at a higher rate than other comparables in the area, find themselves sitting on their property without an offer in sight. The bottom line is that your pricing strategy should accurately reflect neighborhood home values, not your idea of what you think your home is worth.
• Develop a realistic sales strategy – Decide upon your sales strategy beforehand so that your game plan is put in place. More importantly, however, make sure your sales strategy is flexible so that you can react according to the market and according to home values.
• Make it ready to sell – Most buyers of today are looking for turn-key properties, so make sure your home is in excellent condition before you list it for sale. It is important to realize that all the pricing strategizing in the world can’t make up for a home that doesn’t compare to other homes in the neighborhood. Clear out the clutter, stage it to sell, and perform any repairs or upgrades that will allow it to compete with other homes for sale in the neighborhood. Homeowners Concept expert agents can assist you with recommendations.

One of the biggest questions sellers ask agents when selling their home is: should I remodel my home before I sell?

I never considered selling my home with anyone other than a full service realtor with the usual 6% commission. It was my mindset and I didn't think of any alternatives. Because of that I called a 6% realtor and had one of their best known realtors come to my home. The price was a true low ball that she suggested I make the asking price. I was concerned about the service. I felt like just another potential commission. Then, believe it or not, a friend told me that her parents home was sold by Homeowners Concept. I called and talked with Mary who immediately made an appointment to come and see my home. Talk about day and night. First, she answered my questions candidly on the phone. She came to my home and explained the service to me. We listed shortly thereafter. I could not believe the work she put into the sale of my home. Seriously, ALL I had to do was show my home to the buyers without a realtor. We had a lock box for agents to use. Mary fielded all the calls, took care of the listing, put the sign in my yard, took wonderful pictures that were on her website & MLS, listed my home on the MLS and scheduled all the showings. Mary, while realistic, did not encourage me to lowball the price on my home. I would recommend her to anyone selling. She was meticulous, professional and incredibly efficient. All this and fun to work with as well. There is no one better!! Janet P.

Did you know that most high commission companies charge an administrative fee of anywhere from $195 to as high as $599 at closing? THIS is above and beyond the 5%, 6% or 7% commission one pays with these companies. It is a travesty that so many sellers blindly pay these fees on top of an excessive commission. These sellers either do not know any better or they are in a frame of mind of paying over $12,500 for the average priced home in Greater Milwaukee that they figure what's a few hundred more. We have heard from sellers that have objected to the outrageous administrative fees with no satisfaction since companies cover these extra costs in the fine print.

Our administrative fee is the lowest in the industry at only $95 AND you pay much less commission AND have a truly skilled Realtor on your side all of the time (as opposed to some of the time - a subject covered in other posts).

Bottom line: a few hundred dollars on top of the thousands ONE SAVES BY USING HOMEOWNERS CONCEPT adds up to a substantial amount of money, especially in this economy. And even if one wants to be the big spender why not take the savings and make a big donation to a favorite charity? Spending much more in unnecessary commissions can never make one feel as good as giving.

Former FSBO CEO sells home using a Realtor (reported in the AGBeat website: http://agentgenius.com/real-estate-news-events/forsalebyowner-com-founder-gives-up-on-own-listing-hires-real-estate-broker)

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the FSBO route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.

Many FSBOs turn to Realtors

The news stands as an enormous validation of the real estate profession and while some may tease, it is no laughing matter and the former FSBO CEO made a good financial decision.

AGBeat columnist Herman Chan said, “If people want to take a stab at For Sale By Owner (ie FSBO), go for it. But well over 90% of FSBO’s eventually have to list with a real estate agent to get their house sold. It’s harder than it looks!”

The inability of FSBOs to sell completely on their own was the foundation of Homeowners Concept when we began in 1984. 27 years later and 23,000+ properties sold, Homeowners Concept has given home sellers a program they can successfully sell their property without a hefty commission.

Many buyers are not aware of the extremely low Adjustable Rate Mortgages (ARM) available, specifically the 5 and 7 year. As of this writing one can lock in for a 7 year ARM for 3.4% rate. The 5 year is even better at 3%. These are conventional rates although FHA which offers lower downpayment and more flexible underwriting criteria is also offering low ARM rates. The rates are quoted by Netcentral Mortgage (netcentralmorgage.com/414-258-7833) which is located in the same building as our central office in Wauwatosa.In the conservative environment of Southeast Wisconsin most buyers refuse to even consider the ARMs. Yet, if one had been in an ARM for the last 25 years, they would have enjoyed tremendous savings over a fixed mortgage (and would not have to incur refinancing charges AND would have paid off the loan much sooner). As the rates adjusted lower the ARM would have adjusted lower and ARM rates are lower than 30 year rates.

Most buyers have been reluctant to purchase or refinance with an adjustable rate having this fear that rates will go up, yet if one looks at Japan the fixed mortgage rates are close to 2%. In the economic environment we are in, it is very conceivable that fixed rates can continue to move lower to the 3-4% range. Adjustments to the ARM rates at the end of 5 or 7 year anniversary would then translate into a new rate in the 2-3% range.