What Exactly You Pay For When You Hire A Realtor

One subject matter that can be hard to discuss between clients and agents in real estate is the matter of compensation. No one likes to talk about money that much, or what a buyer/seller is going to have to bring to the table with it comes time to pay the agents for their services. I find when I discuss my fees with clients I like to break it down into a few realities and truths that many people do not know about agents:

·      We receive no hourly salary – Time is our greatest commodity and when we are working for you we are investing countless hours taking you to see homes, having open houses, writing up contracts, getting on the phone with other agents, inspectors and other real estate people. We spend seven days a week working for our clients to make sure a transaction runs smoothly from the acceptance of the offer to the closing day. We are in a career where we spend hours upon hours helping clients and will only be paid if and when we close the deal. If we do not close, no matter how much time we spent on your real estate endeavor, we do not get paid. No ifs, ands or buts about it.

·      We split our commission with other people – A lot of clients see the commission rates anywhere from 3%-10% and sometimes question why the amount for the agent. Well the truth is, we have to split our commission with everyone involved in the real estate transaction. First, between the real estate companies involved in the transaction. The company with the closing agent will then pay out that agent and the rest will go to the real estate firm to help pay taxes and business overheads. They also use their portion to help market your home, media and other social platforms to help give your house the best chance to be sold. Remember, both agents get paid, the seller’s agent and the buyer’s agent all comes out of one commission. When explained that way, it is easier to see why a percentage may appear high but actually is being divided when the real estate deal is done to cover everyone’s expenses that was involved in the transaction.

·      Our commissions = Our salaries – This last discussion is always tough because when it comes to my clients; I want to do my best for them as a real estate agent. And when it comes to my commission, there is a little room for negotiation but for the most part, I have set prices for a reason. It would be like if your boss came into your office tomorrow and said hey, I want you to do all the work you are doing and maybe a bit more, but I’m going to cut your salary by 20%. What would you do in that situation? You would be one unhappy camper and would probably start looking for another job. That’s the same for us agents, you may not see all the work we do behind the scenes but I have spent countless nights working well into the wee hours to make sure my clients buy or sell their homes in the best way possible. You are paying for experience, you are paying for my time, you are paying me because you know that I care immensely about each of my clients and will work ultra hard to make sure everything happens the way it should in any real estate transaction.

No one likes to talk about money and payment but I also want to educate my clients so that when the time comes they will know what to expect. Just remember, anyone can pay an agent, make sure you have a great agent working for you so you know your money is going towards everything you want in your real estate endeavors. Feel free to contact me today and let me help you with your next real estate purchase or sell. 

Why Denver is the Perfect Place for Young Entrepreneurs

If I were to tell you that Denver ranks pretty high in the country for places that young entrepreneurs are moving to, would that surprise you? Probably not because we all know that Denver is one of the fastest growing cities in the United States and with our outdoor playground in our backyard, the work/life balance here attracts hard workers from all areas. Recently, Denver was ranked 9th in the nation of best cities for young entrepreneurs based on the four criteria of young adult influence, educational attainment, population growth and tax environment by MoneyRates.com.

The rate at which this city is growing will not slow down anytime soon and the types of jobs that the city has to offer is bringing more and more talent to Colorado. Young entrepreneurs see Denver as a place to set up shop because they don’t have the excessive cost of living, a great pick of potential workers and they get to live in one of the most beautiful states in the country. Also the location of Denver is idea for work, it is not too long of a flight from California or the Midwest (New York is always a bit of a long flight but hey, for the view of the Rocky Mountains I think many people will take the three + hour flight).

When many of these young entrepreneurs come to Denver they are looking for a place to set up shop or even a place they can use as a live/work space. One thing I would recommend is to look into the extensive selection of lofts this city has to offer that are ideal as live/work spaces. Since 2005, I have been specializing in lofts, specifically those in the downtown area, and my website AllDenverLofts.com is a great place to start looking for any young entrepreneur looking to move to Denver. Not only will you have a spot to work and live, but you will also own property here in Denver that is always a great investment. I constantly tell my clients that the greatest investment anyone can make for themselves in Denver right now is in real estate and the facts and numbers that recent studies have shown continue to prove that point.

If you are an entrepreneur looking to move to the Denver area sometime soon or anytime in the future, give me a call or email today and let’s set up a time to chat about the choices you have when it comes to looking for the perfect life/work space for your business.

Live/work Loft At The Bolt Factory - Listed By: Phillip Svabodo, Blue Shift Real Estate  $5000/MO

8/26/16

July % Of Sold Properties By Financing Terms

Provided By DMAR's Market Trends Cmmittee

The Most Expensive Houses in Denver

It is safe to say that there is quite a range of houses in the Denver housing market these days. From small bungalows and apartments ranging from $250-$400K to multi-million dollar homes that can cost up to $1,000/sqft or more Denver is full of homes of all price ranges.

A lot of the million dollar homes in Denver have that price point not only for the extensive home built on the property but also for the property itself. Many people love Colorado for the scenery and when they are looking for a spot with a view that is exactly what they are paying for with these homes. Watching the sunset over the Rocky Mountains or the sun rise over downtown Denver every morning is what many homebuyers are looking for, they want the luxury home along with the million-dollar-view each and everyday.

The one area of town that hosts a lot of these beautiful homes is the Cherry Hills Village neighborhood. The homes found in this neighborhood are said to be some of the most expensive in the city with a median home value of around $9.5 million. But other neighborhoods are catching up quickly for example you can find some stunning modern homes popping up in the Tennyson and Highlands neighborhoods which is attracting more and more homeowners who want to stay close to the city.

These stunning million-dollar homes will continue to be a must have for many Denverites and that is where I come in. As many of you know I joined Kentwood a few months ago and while I work with buyers and sellers of all price ranges, one thing Kentwood is known for is luxury homes. Like I tell any of my clients, buying and selling a home is a lot of work and you need to have an agent whom you trust to handle all your business. As a certified real estate agent with many years of experience, I am confident in my ability to help you buy and/or sell your million-dollar home with as much ease as possible. These beautiful homes with even more beautiful views can be yours and I want to help you find the home of your dreams. Feel free to shoot me an email or give me a call today and let’s set up a time to grab coffee and talk about what it is I can do as your agent and what it is you are looking for when it comes to finding that perfect home with the best view. 

Kentwood City's Lobby/Reception Area.  

The Summer is Bringing More Inventory and Lower Prices in the Denver Housing Market

Many people ask me when the right time is to buy a home, if there is a better season to look for a place, or the best month to put their home on the market. The thing about the real estate market in Denver is I can try to predict the best time but with how fast this market changes on a daily basis, that answer could change over night. Many people put their home on the market in the summer because that is when a lot of people are looking to move. For example a factor like school is out for the year can make a big impact on a family’s decision and if they don’t want to deal with moving their kids during the school year. Many people look to buy in the summer as well because of the weather makes it easier to move without worrying if they are going to get rained on or their boxes will get soaked due to the snow.

A lot of clients I have talked to this summer have expressed concern when it comes to buying a home especially. They feel that there is just not a lot on the market right now and with every house that is on the market comes a good dozen plus other buyers vying for that home. What I have come to see though in the past few weeks is an increase in inventory and actually a bit of a lowering of prices. That being said, new homes aren’t just coming onto the market in huge numbers on the daily but if you keep an eye out you will see they are more frequently making an appearance in the MLS system.

With that being the case, another thing I like to talk to my sellers about is the reality when it comes to pricing their home. Many sellers have a number they want to put their home on the market for and because of the hot market in Denver, a lot of the time they want to ask for the pie in the sky. While many houses are going for more than asking price, I always try to tell my sellers to be realistic when pricing their home because the last thing we would want is their home to sit on the market for a few weeks with no bites and have to go back and reduce the asking price. The great thing about having an agent help you is when we can do a market analysis of the area and other houses that are similar to your own and from there we can pinpoint an appropriate asking price.

And when it comes time to put your home on the market, I make sure to tell all my clients who have already vacated the premises, to stage their home properly. When new buyers come into an empty home, they have a harder time imagining what a life would look like in that empty space. But with the right staging, buyers can see the potential more easily and your home is more likely to sell quicker.

If you think this summer is the time to put your home on the market or start looking for a place, feel free to contact me and let’s set up a time to talk.

Photo by @NoahBergPhotography