FREQUENTLY ASKED QUESTIONS
Q. What kind of service do you offer?
A. We offer full service brokerage representation for just 1.5%!
Q. What's the catch?
A. There is no catch! Our business model was designed to help you! We believe that the traditional commission model used by most real estate agents today is outdated and no longer applicable to the new standard of real estate. Our reduced rate and rebate programs just makes sense!
Q. What markets do you serve?
A. We cover the entire State of Texas! We have agents physically located in the Houston, Bryan-College Station, Dallas-Fort Worth, Austin, and San Antonio markets. Click here to contact the agent in your area!
Q. What is the difference in you and a "normal" real estate agent?
A. We aim to offer BETTER service than the standard agent! We are FULL SERVICE Realtors® who have a proven track record of helping buyers and sellers around Texas on the buy or sale side, and we LOVE helping our clients save money! The average agent closes between 4 and 10 deals a year. Over the past two years, we have closed over 70 transactions per year. That's 700% more experience than the average agent!
Q. How do real estate commissions work in Texas?
A. In almost all residential transactions in Texas, sellers contact an agent to list their property. Although no regulations mandate existing commissions, the majority of sellers pay a total of 6% in commissions. Typically, 3% goes to the Selling Broker/Agent, and 3% goes to the Buyer's Broker/Agent. Red Pear Realty believes that this system of paying 3% to each agent no longer makes sense. That's why we are happy to list homes for a REDUCED RATE and offer REBATE services for our buyers.
Q. I want to buy a home. Why can't I just represent myself and keep the commission? Or hire an attorney to draft the contract for me?
A. Consider the following:
A. You have three really good options:
1. Go to an open house.
2. In the Austin, Bryan-College Station, Houston, Dallas and San Antonio markets, a Red Pear Realty agent can show you a listing for a flat fee of $150 per showing, payable upon showing.
3. If you are outside of one of those markets, or prefer to view a home with a contract agent, we can help you arrange a showing in any
Texas location for $100, or less.
(Please note that if you sign a representation agreement with another agent, Red Pear Realty can not help you until the terms of that
agreement are satisfied.)
Q. What is the difference in a Red Pear agent and a contract service agent for showings?
A. Experience! Red Pear Agents are experienced home buyers and will help you really evaluate each home as you're walking through it.
Q. How can I use my commission rebate?
A. There are several different ways to use your commission REBATE at closing:
Q. Why aren't more people doing this type of thing?
A. We don't know either!
Q. Who should NOT use Red Pear Realty's Rebate or Reduced Fee Realty services?
A. We specialize in residential real estate. Those looking to buy/sell/lease commercial property, should seek brokerage services with individuals who specialize in those arenas.
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?
A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.
Q. I've signed a representation agreement with another agent. Can you do a rebate or reduced fee service for me?
A. Unfortunately, we cannot help you until the terms of your existing representation agreement are fulfilled.
Q. What's the MLS?
A. The MLS, or Multiple Listing Service, is a computer database system set up by REALTORS ® to help them market real estate within a certain geographic area. It also keeps track of historical data for properties that have been listed in the past. The MLS is an incredibly powerful tool that can be used by REALTORS ® for all kinds of information such as pricing, home measurements, commissions offered, market trends, etc.
Q. What happens if a seller offers a bonus to the buyers agent?
A. We split the bonus (sometimes called a BTSA) with you just like we do with the commission.
Q. My lender says I cannot use my full commission rebate. Then what happens?
A. If the rebate exceeds closing costs, ask your lender to apply the excess rebate to discount, or reduce, your mortgage interest rate. It is important to choose a lender that understands the realtor rebate and checks these calculations up front. If you wait until you get the final Closing Disclosure from your lender to address this, it could delay your closing.
A. We offer full service brokerage representation for just 1.5%!
Q. What's the catch?
A. There is no catch! Our business model was designed to help you! We believe that the traditional commission model used by most real estate agents today is outdated and no longer applicable to the new standard of real estate. Our reduced rate and rebate programs just makes sense!
Q. What markets do you serve?
A. We cover the entire State of Texas! We have agents physically located in the Houston, Bryan-College Station, Dallas-Fort Worth, Austin, and San Antonio markets. Click here to contact the agent in your area!
Q. What is the difference in you and a "normal" real estate agent?
A. We aim to offer BETTER service than the standard agent! We are FULL SERVICE Realtors® who have a proven track record of helping buyers and sellers around Texas on the buy or sale side, and we LOVE helping our clients save money! The average agent closes between 4 and 10 deals a year. Over the past two years, we have closed over 70 transactions per year. That's 700% more experience than the average agent!
Q. How do real estate commissions work in Texas?
A. In almost all residential transactions in Texas, sellers contact an agent to list their property. Although no regulations mandate existing commissions, the majority of sellers pay a total of 6% in commissions. Typically, 3% goes to the Selling Broker/Agent, and 3% goes to the Buyer's Broker/Agent. Red Pear Realty believes that this system of paying 3% to each agent no longer makes sense. That's why we are happy to list homes for a REDUCED RATE and offer REBATE services for our buyers.
Q. I want to buy a home. Why can't I just represent myself and keep the commission? Or hire an attorney to draft the contract for me?
A. Consider the following:
- The Seller's Agent is NOT obligated to pay a commission or reduce their commission if the buyer has no representation in a deal. In most cases if the Buyer is unrepresented, the seller's broker keeps the full 6% (per the contract between the seller and the seller's broker), and the buyer missed out on professional representation.
- When an agent agrees to represent a seller, their primary, fiduciary duty is to represent their client's interests above everyone else's. If you represent yourself, you are fighting an incredible uphill battle against a professional that is not representing your best interests, and you are much more likely to lose out on more than just 3%.
- This is why "Pocket Listings" are so valuable to selling agents. Instead of placing these listings immediately on the MLS and fully advertising them, the selling agent attempts to find a buyer from within their own network so that they can keep the full 6% commission for themselves. Many sellers and buyers are never the wiser to what is really going on when they buy or sell a Pocket Listing.
- Attorneys are knowledgeable in the law and contracts, but not always current aspects and conventions of the real estate market. We have represented several attorneys whose focus is real estate law, who come to us for representation because of our knowledge of the real estate market.
A. You have three really good options:
1. Go to an open house.
2. In the Austin, Bryan-College Station, Houston, Dallas and San Antonio markets, a Red Pear Realty agent can show you a listing for a flat fee of $150 per showing, payable upon showing.
3. If you are outside of one of those markets, or prefer to view a home with a contract agent, we can help you arrange a showing in any
Texas location for $100, or less.
(Please note that if you sign a representation agreement with another agent, Red Pear Realty can not help you until the terms of that
agreement are satisfied.)
Q. What is the difference in a Red Pear agent and a contract service agent for showings?
A. Experience! Red Pear Agents are experienced home buyers and will help you really evaluate each home as you're walking through it.
Q. How can I use my commission rebate?
A. There are several different ways to use your commission REBATE at closing:
- To cover closing costs.
- To buy down your interest rate on your loan
Q. Why aren't more people doing this type of thing?
A. We don't know either!
Q. Who should NOT use Red Pear Realty's Rebate or Reduced Fee Realty services?
A. We specialize in residential real estate. Those looking to buy/sell/lease commercial property, should seek brokerage services with individuals who specialize in those arenas.
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?
A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.
Q. I've signed a representation agreement with another agent. Can you do a rebate or reduced fee service for me?
A. Unfortunately, we cannot help you until the terms of your existing representation agreement are fulfilled.
Q. What's the MLS?
A. The MLS, or Multiple Listing Service, is a computer database system set up by REALTORS ® to help them market real estate within a certain geographic area. It also keeps track of historical data for properties that have been listed in the past. The MLS is an incredibly powerful tool that can be used by REALTORS ® for all kinds of information such as pricing, home measurements, commissions offered, market trends, etc.
Q. What happens if a seller offers a bonus to the buyers agent?
A. We split the bonus (sometimes called a BTSA) with you just like we do with the commission.
Q. My lender says I cannot use my full commission rebate. Then what happens?
A. If the rebate exceeds closing costs, ask your lender to apply the excess rebate to discount, or reduce, your mortgage interest rate. It is important to choose a lender that understands the realtor rebate and checks these calculations up front. If you wait until you get the final Closing Disclosure from your lender to address this, it could delay your closing.
