This was a decision that was made after long and hard consideration. When we were allowing our clients to sell their homes FSBO, we found that it was doing them more harm than good. The main problem is that even though it is illegal for a realtor to boycott a listing, we discovered that it was still happening. Many homeowners were keeping FSBO signs on their property, resulting in realtors not realizing it was for sale through the MLS. Since less than 2% of all homes are sold FSBO we have determined that this has become an easy decision. Why take the chance of losing the one buyer who may be ready to buy your home.
What Happens When I Have a Contract or My Home Sells?
Royal Realty will be faxed the contract. We will notify you and the negotiations will begin. When a contract has been accepted we require a fully signed copy. The MLS Rules require that a listing be changed when the contingency in a contract is satisfied. A contingent contract is the case in 99.99% of real estate contracts. Typical contingencies are obtaining a mortgage, attorney's review and approval of the contract, the sale of the buyer's home, a property inspection, a pre-closing inspection, or any other condition that can prevent the buyer from proceeding to closing. The MLS requires that any event such as those listed above be reported within 72 hours, or a fine of $100.00 will be charged. The MLS Rules apply to everyone: broker, sales agent, realtor, and home seller. Eliminating any problems is very easy: simply e-mail or fax any updates, and we will take care of it for you.
If I Use Your Service Will I Have to Pay a Commission?
In the "Flat Fee MLS Listing Agreement" which you will send or fax to us, is an area for you to specify the amount of commission you are willing to pay to a broker who brings you a buyer. This is usually 2% to 3% of the selling price and not paid until closing.
Where Will My Property Be Listed?
You will be listed in the Multiple Listing Service of Northern Illinois (MLSNI), which has over 40,000 Realtors. Your home will also be listed in the MAP Multiple Listing Service (MAP), which concentrates on the northern suburbs. You will also be in ChicagoTribune.com, DailyHerald.com, Real-Net .com, Homes.com, Yahoo.com, "Showcased" in Realtor.com, and many more sites. Click on Realtor.com to see how your exposure will be improved. Additionally you can upgrade your Realtor.com, Homes.com and Yahoo.com listing which will allow you to increase your description and amount of photos displayed.
What Does Your Sign Look Like?
We provide you with a professional real estate sign. Click Here to view our Real Estate Yard Sign
Will You Put My Home on Your Web Site?
We feel this is nothing more than a marketing tool and a waste of time. Why would anyone come to our Web Site looking to buy a house? You are here because you want to sell, not buy. It is for this reason that we concentrate on getting your home sold the right way, which is getting you listed in the multiple listing service and nationally in sites like Homes.com and Realtor.com. In fact you may come across companies that will offer you a "flat fee listing" and they do nothing more than put your home on their web page. This is a complete waste of time and money as it provides very limited, if any exposure.
Why Don't You Recommend an "Open House"?
Your chances of selling your home through an "Open House" are slim, and we feel it is more of an inconvenience than a selling possibility. Realtors have "Open Houses" to try and sell your house, but that is seldom the case. What they are really good for is to get Realtors buyers. When prospects come into your home and say it is not exactly right, realtors try to pick them up as buyers and switch them to a different home.
What is a Brokers Open House?
This is when you get listed in the MLS on a predetermined day to have any real estate agent view your home in the hopes they may have a buyer. We will be happy to schedule these for you, however, in our opinion they are a waste of your time. You have to sit home for several hours waiting for what could be no one showing up. Many agents, if they have a buyer looking for a particular kind of home, will call you to ask if they can preview your home. So don't waste your time with a Brokers Open. Many agents go to Brokers Open Houses for the express purpose of listing other homes in your area.
What Do I Do When I an Offer is Accepted?
Once you have accepted and signed the contract we will need a copy of the contract and disclosures faxed to us to change your status in the MLS.
What If I Move and Can't Show My Home?
Your best option is to put a Lock Box on your home.
If you want, we can list your home as a full-service broker. By choosing us as your Full Service Broker, the flat fee that you originally paid to us will be refunded to you after closing.
Won't I Get More Money for My Home If I Sell it My Self?
This couldn't be further from the truth. Buyers know that when a homeowner is attempting to sell their home without a real estate firm, they are trying to save the commission. So a buyer will always make an offer with this in mind and offer you a lower purchase price. In order to get the most for your home, chances are this will be when a Realtor brings you an offer from one of their clients. This is why it is so important to be listed in the MLS.
How Long Will My Listing Remain Active?
Your listing will remain active up to one year or until it sells.
Can I Cancel My Listing?
You may cancel your listing at any time, and there is no cancellation fee. If you decide to take your home off the market temporarily, we will re-list your home for no additional charge within six months. If you cancel your listing and then decide you would like to re-list, there is a fee of $150.00.
How Long Will It Take For My Listing To Appear In The Multiple Listing Service?
Your listing must be entered into the MLS within 72 hours. We usually have it entered within 24 hours. It may take up 48 hours to appear in Realtor.com, etc. because they get the information from the MLSNI, not from us.
How Long Does It Take For The Home Picture To Show On The Listing?
In most cases you will be providing the pictures to us. We need a picture of the front of your home ASAP. As soon as you get us the pictures they will be on your listing. It must be in "jpg" format and the lower the resolution the better. The photos can be emailed to us at RoyalRealty@comcast.net.
Why Isn't The Homeowners Phone # and Showing Instructions Listed at Realtor.com etc.?
Realtor.com and ChicagoTribune.com etc. are not multiple listing services. They get the information from the Multiple Listing Service and list the home details only, along with the Real Estate office that has taken the listing.
Daily Herald Article 11/7/04 by Edith Lank:
If home doesn’t sell, prices may be too high
Q. I am a real estate broker who reads your column as much as possible. However, sometimes I miss it. A friend of mine told me that you once wrote an article about how and when it is time to reduce the price of a home. He said that you had some type of “formula” to utilize with sellers that makes sense, and works well when attempting to achieve a price reduction. This is the task that I least enjoy, and I find that sellers can be extremely stubborn. If you have some advice that will enable me to make it somewhat easier and more logical for everyone involved, then I would be so thankful. B.H, via e-mail
A. I don’t have any formula. But I certainly have said many times that once the buying public has voted that your house isn’t worth what you’re asking, there’s nothing to do but find the problem and fix it. And if there isn’t any other obvious defect, then your problem is price. It doesn’t matter what you think, what your broker thinks, or even what an appraiser thinks. In the end, only the buying public’s opinion matters. Even when some other problem can’t be remedied, a lower price will cure it. Anything will sell if the price is right.
Should I list in the winter?
* In good winter weather people are still shopping for homes and those looking are more serious buyers.
* Fewer homes are listed in the wintertime so there is less
competition for your home.
* Many corporate transfers happen at the beginning of the calendar year and your home will be seen by this niche.
* While your home is decorated for the holidays its festive look may entice someone to make an offer.
* You will be ahead of the spring influx of listings.
Can you give me some idea of what my closing costs will be?
Sellers Closing Costs: Click Here
Buyers Closing Costs: Click Here
1. Fact: Realtors will tell you your home is worth more than you thought.
Truth: This is how Realtors do what is called "buying the listing". They tell you what you want to hear to get the listing and then when your house doesn't sell, ask for a price reduction, wasting valuable market time.
2. Fact: Realtors will tell you that if you list with them they will sell your home.
Truth: Most listings are sold by another agent through the Multiple Listing Service, not the agent that you listed with. The Multiple Listing Service of Northern Illinois is the most widely used home listing database in the Chicago land and Suburban area.
3. Fact: Home owners try to sell their homes themselves to save the commission.
Truth: Buyers know this is why homeowners try to sell their homes. Buyers will bring you lower offers than you would get if listed with a Realtor because they know the difference is going into your pocket rather than paying for their buyer's agent representation.
4. Fact: Realtors will tell you they will have an "Open House" for you every week, or twice a month, or whatever.
Truth: A Realtor will tell you how great they are and how many listings they have. If they are that great and have so many listings, and tell everyone they are going to have an "Open House" for them, something is not right. Many top producing agents do not sit their own open houses. Some of them do not even show up at the closing. Many have their "staff" handle the entire transaction. Open Houses provide limited exposure to the public. Your greatest
source of exposure is the MLS.
Definitions
Commission: The amount paid at closing that is usually 4% to 6% of the purchase price. With Royal Realty Flat Fee Service, you will be paying half and then only if your home sells through the MLS.
Earnest Money: The money given to the seller by a potential buyer (usually held in escrow), with the signing of a sales contract, showing that the buyer is serious about buying the house.
Final Walk-Through Inspection: This usually occurs within 24 hours of your closing. This is the opportunity for the buyer to confirm that the home they are purchasing is in the same or agreed upon condition as when they initially made the purchase.
Flat Fee: Instead of paying 2% to 3% commission you pay a specific amount in advance and eliminate thousands of dollars in unnecessary expenses.
Lead Paint Statement: Every purchaser with any interest in residential property which was built prior to 1978 must be notified that such property may present exposure to lead for lead-based paint which may cause health risks. This is a State required form that we will provide to you with the purchase of any package. You should prepare this Lead Paint Disclosure and have it ready for prospective buyers.
Lock Box: A device that is placed on the exterior of your home (usually on your front door knob) that will allow realtors to enter your home after they have made an appointment, so that you don't have to be home. You get all phone calls, so you set the appointments. You have the lock box code to pass on to buyer's agents as you please. It is recommended that you keep a log of all information and call the agents office to verify validity prior to giving out a lock box code. It is recommended that you DO NOT give your code to anyone looking at your home unless they are a Real Estate Agent.
MLS: The Multiple Listing Service is a corporation owned and controlled by the local association of Realtors. To input listings you must be a licensed member of the local association of Realtors. The MLS is not available to the public, only MLS members can view the MLS Listings.
MLSNI: The Multiple Listing Service of Northern Illinois is the largest and most widely used database in Chicago and the surrounding suburbs. Realtor: A designation for an agent or broker who is a member of the National Association of Realtors.
Sales Associate: A person with a real estate license that works with a specific real estate broker. Selling Broker or Listing Broker: One who represents the interest of the seller and the real estate firm that he/she works for. This commission is 100% eliminated when you work with Royal Realty on a Flat Fee Basis.
Sellers Disclosure: This disclosure statement informs buyers of the condition of the property they are buying. We will provide you with the necessary Sellers Disclosure for you to prepare and have ready for prospective buyers. This is a State required form.
2. Unlimited Questions and Answers Up Until Closing
3. Coordinate Final Walk-thru
4. Listed in MLSNI (Multiple Listing Service of Northern Illinois)
5. Listed in AOL.com, MSN.com, ChicagoSunTimes.com, ChicagoTribune.com DailyHerald.com
WallStreetJournal.com, Yahoo.com, Realtor.com , and Many, Many More!!
6. Brochure Template
7. Appointment Log Sheets
8. Lead Paint Disclosure Statement (Required if Built Before 1978)
9. Sellers Disclosure Statement (Required)
10. Radon Disclosure (Required)
11. Mold Disclosure
12. Disclosures Will be Posted on the MLS so They Will be Available to Realtors for Offers
13. Estimate of Sellers Equity Form
14. Real Estate Contract for Review
15. Unlimited Changes to Your Listing
16. Home is Listed Until it Sells (Up to One Year)
17. Contract Negotiations
18. Professional Real Estate Sign
19. Home Sellers Guide
20. Home Buyers Guide
21. Buy Any Home Through Royal Realty and 20% of Our Commission is Yours After Closing.
It is now more important than ever that you do not list your home with a company that may result in your listing being canceled without any warning.
The following is the portion of Senate Bill 2887 that explains the new law:
In Sec. 15-75 “exclusive brokerage agreement” is defined. All exclusive brokerage agreements must specify that the sponsoring broker, through one or more sponsored licensees, must provide at a minimum, the following services: (1) accept delivery of and present to the client offers and counteroffers to buy, sell, or lease the client's property or the property the client seeks to purchase or lease; (2) assist the client in developing, communicating, negotiating, and presenting offers, counteroffers, and notices that relate to the offers and counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and (3) answer the client's questions relating to the offers, counteroffers, notices, and contingencies. This is effective for all exclusive brokerage agreements signed after August 19, 2004. The failure of a broker to provide such services would constitute a violation of the Real Estate License Act.
Nancy and I have been in real estate for a combination of over 50 years. We have both worked for major companies prior to forming Royal Realty. Once when Nancy was working for another company, she submitted an offer for a buyer for a property which was listed with a “Flat Fee Listing Company”. During the course of the negotiations and all the way through the closing, Nancy had the hardest time reaching the listing agent. What should have been a pretty straight forward negotiation took days because it was over a weekend and the listing agent had other things to do. Not exactly fair to the buyer, or the seller!
After that experience, we decided that we could do the same thing – save people money – but give the kind of service that people expect from professionals. When Royal Realty first started, we allowed For Sale By Owner listings – until a problem occurred that made us rethink the type of service we wanted to offer. I received a call from an agent asking about one of our listings that had sold recently. He said that he had showed that particular home to his buyer numerous times and that at the last showing, the seller took the buyer aside for a private conversation. The next thing he knew, the buyer had gone behind the agent’s back and purchased the home as a For Sale By Owner. To make a long story short, the seller ended up paying the other agent the commission. This incident caused us to change our business profile and discontinue taking For Sale By Owner listings. We find that the way we currently do business is clean, straight forward, and honest. We feel that Royal Realty provides a service like no other.
Yes, we charge a flat fee and that is all you ever pay to us. The buying agent is still receiving his/her commission after closing – and other realtors do not know that you are saving money on the listing side. As far as they know, the listing is just the same as every other full service listing. This way when they bring in an offer, they will not try to discount it based on the fact that you are not paying both sides of the commission.
Now, some more about us. We are a husband and wife team. We have no need for renting office space as everything we do is done over the internet and via phone or fax. This keeps our overhead down, and in turn, our prices reasonable. We often do not meet our sellers unless we happen to meet them when delivering a sign, or if we work with them as buyers. I handle mostly the listing side, and Nancy negotiates all offers, assisting sellers until she has a fully executed contract. Even after your home has “gone under contract”, we are both available for questions and assistance until your property has closed. We are easy to reach, available weekdays, weekends and holidays. The majority of our business comes from referrals as we limit our advertising to the internet.
If you have any questions, please do not hesitate to contact us:
Alan Levinson
847.630.2700
email: RoyalRealty@comcast.net
Nancy Levinson
847.630.1951
email: NancyLevinson@comcast.net