Archive for April, 2008

Misconceptions About Commissions

I had a conversation with a seller over the weekend which brought to light a couple of misconceptions about broker commissions and agent commissions. This seller, who had canceled a listing twice with two separate agents and was now selling his home by himself for almost 12 months at this point, wanted to know if I was a broker. I said, “No.” His reply was, “then you can’t be of any help.” I realized later on that he was referring to a possible commission reduction. The misconception of some sellers is that “brokers can cut their commission much more than an agent.”

This is not so. Agents and Brokers can list a house at any commission and even list it for free if they would like to. I have seen agents list their parents’ home for free, which is perfectly fine, as long as the relationship is disclosed in the MLS listing.

A good philosophy to follow when listing your home and negotiating commissions with a Realtor is this: “You Get What You Pay For.” Many good agents won’t list a home for one percent unless they plan not to sell your home.

April 20, 2008 at 5:23 pm 2 comments

You can help block future real estate taxes…

Arizona is one of 14 states that does not impose a “Transfer Tax” on a Real Estate transaction — and given the current status of the economy, it certainly would be wise to keep it that way.
Yet, the state legislature has previously floated proposals to establish such a tax in Arizona. The negative effect on a real estate market already taxed (pardon the pun) by a weak economy would probably limit the amount the state could raise if such a tax was added anyway, so it’s definitely not a good idea.
A good overview of what a Transfer Tax would mean for both buyers and sellers is provided in this ABC-15 news story (click the “play” button on the right side of the page to view the video version of the story).
The Arizona Association of Realtors currently has a petition drive going to collect enough signatures to place a constitutional amendment that would bar the creation of a Transfer Tax on the November 4, 2008, ballot.

AAR’s proposed “No New Tax On Our Homes ballot initiative would prohibit the double taxation of any real estate sale in Arizona by banning any real estate Transfer Tax. (Other states with Real Estate Transfer Taxes have never repealed them.)
In order to help get this measure on Arizona’s November ballot and let the government know that we do not want double taxation on our homes (obviously, we already pay property taxes each year), petitions are being circulated now.
For more information, or to add your signature to the petition, please contact me or visit http://www.nonewtaxonourhomes.com/home and click the Help Pass Our Petition link.

April 18, 2008 at 4:24 am Leave a comment


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