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Myths and Realities

BG Barnes dispels the most common Real Estate Myths

Myth #1:  When choosing a broker or agent, you should always go with a large national brokerage.

Fact:  The fact is, all agents and brokers perform exactly the same function when representing a seller or buyer. While a large national brokerage has no real advantage over a sole broker like BG Barnes, ours does have one very distinct advantage. Because of low overhead, we pass the savings directly to you in form of competitive commissions.

Myth #2:  A 6% commission is the prevailing rate that all brokers and agents must charge.

Fact :  Real estate commissions in the state of California are negotiable.

Myth #3:  Paying a broker or agent a 6% commission to sell your home is the smart thing to do.

Fact:  Let's face it, most consumers are conditioned to pay 6% of the sale of their home to brokers and agents. It's what they're used to paying, but it doesn't have to be that way.

Because we're a sole broker, we can save you thousands of dollars you would ordinarily pay to larger brokers to cover their overhead expenses. Also, in a typical real estate transaction, the commission is split four ways. The listing agent and the broker he works for receives a portion, plus the buyer's agent and the broker he works for receives a portion. By listing with a sole broker like BG Barnes, the commission is split just three ways, allowing the seller to save even more!

Myth #4:  Paying a broker less than 6% commission means less service and support.

Fact:  It could be, if you're not careful. It may mean they simply put up a sign in your front yard and enter the property on the multiple listing service (MLS), and then you never hear from them again.

You should always interview the potential broker or agent to find out exactly what functions they'll perform in order to sell your home. Who knows, you just may discover a full-service brokerage like BG Barnes that can save you up to 2 1/2% of the sale of your home. Wouldn't that be nice?

Myth #5:  When signing a listing agreement with a broker or agent, it is an advantage to allow the listing agent to also represent a potential buyer. This is commonly referred to as dual agency.

Fact:  Though a dual agency agreement is not illegal in California, it is very difficult for the listing agent to also represent the buyer and remain 100% loyal to you. An agent that lists your property gets to know a lot about you, including your motives for selling and whether or not you're open to a bottom-line price. This knowledge can potentially put you at a disadvantage. It's simply unrealistic to expect a dual agency to remain loyal to both buyer and seller.

Myth #6:   It will not make any difference whether or not you list with BG Barnes Real Estate.

Fact:  Chances are, even if you list and sell your home with another broker, you will likely sell your home to the same buyer, in the same amount of time, and for the same price. The only difference? With BG Barnes you'll have significantly more cash in your pocket at closing time.

Myth #7:   If you sign a listing agreement for a 3 1/2% commission, other agents and brokers will not show your property to prospective buyers. The reason is that the commission paid to the buyer's agent is less than they normally receive.

Fact:   Not true. Over 75% of all listings on the multiple listing service (MLS) today provide a commission to the buyer's agent of 2% or greater. Most are at 2 1/2%. When BG Barnes Real Estate signs a listing agreement with you, your listing is placed on the MLS and it provides a 2 1/2% commission to the buyer's agent. BG Barnes receives just 1 %. Brokers receive the commission rate they expect, so they're motivated to show your home.

Contact BG Barnes today and discover how easy it is to achieve all your real estate goals. Call (858) 483-2105 or e-mail bbarnes1@san.rr.com.