Scales

Today I’m going to write about the role of selecting a Realtor and the impact that your choice has on the final sales price. In other words, does a real estate agent really have such super ability to negotiate that they can get you a better price than you would have received with an alternative? Or do most houses sell at their Fair Market Value?

Selecting a Realtor

Yesterday, I wrote an article that outlines my plans to offer a reduced commission rate of 4.7% while still offering full service to any home sellers in the Twin Cities.

There are whole real estate industry articles about how to avoid lowering commissions but my least favorite is – “Mr. Seller, if Bill was so willing to cut his commission, can you imagine what he would do to your asking price during negotiations?”

The problem with this is that it ignores fair market value.

What is Fair Market Value?

Fair Market Value is defined by the IRS in the following way -

Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

By definition, homes on the MLS are on the open market. Most of the relevant facts are disclosed on the MLS or through a Sellers Disclosure as required by Minnesota law.

Continue reading “The Fallacy of Selecting a Realtor to Get You the Best Price” »

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Full Service Realtor at a Low Fee Commission of 4.7%

by Bill Wallace on March 17, 2014

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Today I am announcing a new low fee commission structure of 4.7% for my Twin Cities home sellers. Keep reading for more information about full service Realtors, how they get paid, what services are provided and how this plan works.

A Realtor’s 2 Jobs

A Realtor has 2 distinct jobs to do in order to make a living.  Everyone sees the part of the job that involves knowing how to help buyers and sellers successfully navigate through the purchase or sale of a home.

The hidden half of the job is finding more clients.

I really enjoy the first half and don’t like the 2nd part as much.

To do the 2nd part well Realtors do things like –

  • Spend lots of money on developing websites
  • Pay other web sites hundreds or thousands of dollars a year in order to buy leads from websites that do generate traffic
  • Do direct mail programs
  • Advertise in local markets via print, radio & even TV
  • Conduct open houses where their goal is to meet potential buyers (not really sell the house they are showing)
  • Inundate their past clients or relationships with reminders that they are in real estate so that they can hopefully get a referral

One real estate marketing site recently estimated that in order to generate $75,000 in earnings that a Realtor should spend $27,200 in web marketing.

I’m hoping that this 4.7% option will spread via word of mouth which will mean I won’t have to spend a lot on marketing.

Continue reading “Full Service Realtor at a Low Fee Commission of 4.7%” »

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809523_700

Today I have listed this large footprint rambler at 6125 Wynnwood Rd, Golden Valley, MN 55422.  This is a 1 owner home that has been well maintained and is move-in ready.  The home has 3 bedrooms and 2 baths, large room sizes and a wooded and flat yard on a quiet street.

Other features of this home include -

  • Eat in kitchen has pantry, ceramic floors and newer Corian counters
  • Freshly painted main level features large living room with large front windows and gas fireplace
  • Formal dining room with new fixture and built in hutch
  • 24 foot long 3 season porch with great windows toward the back yard runs behind the garage
  • 3 bedrooms on the main floor – there is hardwood under the main floor carpet
  • Main bath has 2 sinks, ceramic floors and lots of cabinet space
  • Huge 37×12 family room with wood burning fireplace and walkout to back
  • 2 non-conforming bedrooms in lower level to use for crafts, exercise, office or add egress
  • Laundry, 3/4 bath and former well room that would make nice wine holding space
  • Under garage room accessible from back yard for tons of additional storage
  • Oversized 2 car garage with built in cabinetry and cement driveway
  • Newer furnace, A/C and water heater
  • Home has steel siding and in ground sprinklers

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Schools:

You can find additional details about the property including more pictures, virtual tour and a map here – 6125 Wynnwood Rd, Golden Valley, MN 55422

For more information about this property please contact me

Bill Wallace is a Realtor at RE/MAX Advantage Plus in Spring Park, MN with a focus on West Hennepin County and the Twin Cities including – Eden Prairie, Excelsior, Golden Valley, Hopkins, Lake Minnetonka Area, Long Lake,  Maple Plain, Medina, Minnetonka, Mound, Orono, Plymouth, Spring Park, Wayzata in Hennepin County and Chaska, Chanhassen in Carver County

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New Listing – 323 Adams Avenue, Edina, MN 55343

by Bill Wallace on May 3, 2013

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Yesterday, I listed this large footprint rambler at 323 Adams Avenue, Edina, MN 55343.  This 3 bedroom, 2 bath home is move-in ready, has an updated kitchen and an open living space for the kitchen/dining/family room areas.  It has a number of very nice updates throughout.

Other features of this home include -

  • The kitchen has gone over a makeover which includes new maple cabinetry, laminate flooring, can lighting and Corian counters.  There is a nice breakfast bar area for 2 people to eat in a casual setting.
  • The home has a large foundation (1,472 square feet) which means there are lots of spaces for 1 floor living.  These include an open concept kitchen, dining room and family room area.  A formal living room and a separate 4 season sun room. 
  • There are 3 good sized bedrooms on the main level.  Each has beautiful hardwood floors.
  • The full bathroom on the main level has ceramic floors
  • The main floor sunroom has access to the backyard as well as a 2nd back staircase to the basement
  • The lower level has brand new laminate wood flooring throughout to give it a clean and updated look.  There are 2 office/exercise/craft rooms in addition to the large amusement room.  Each of these rooms could be easily converted to bedrooms by adding an egress window.
  • The lower level laundry is very clean and has an abundance of built in cabinetry for storage.  In addition there is another separate storage/work space in the basement.
  • It has one of the bigger 2 car garages you’ll find as it is extra wide and deep.  There are built-in’s that will stay and there is a wheelchair ramp for easy access to the home.  The ramp can easily be removed to reveal the steps underneath if you want to save room.  Concrete driveway as well.
  • Very nicely landscaped yard.  There is a wonderful stamped concrete in the back which is very private.  Many flower beds as well as a permanent raspberry/garden enclosure.  A newer maintenance free porch was added on the side door as well.
  • The home has newer windows throughout and nice touches like gutters all around.
  • Easy access to Hwy 169
  • High demand Hopkins schools

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Schools:

You can find additional details about the property including more pictures, virtual tour and a map here – 323 Adams Avenue, Edina, MN 55343

For more information about this property please contact me

Bill Wallace is a Realtor at RE/MAX Advantage Plus in Spring Park, MN with a focus on West Hennepin County and the Twin Cities including – Eden Prairie, Excelsior, Hopkins, Lake Minnetonka Area, Long Lake,  Maple Plain, Medina, Minnetonka, Mound, Orono, Plymouth, Spring Park, Wayzata in Hennepin County and Chaska, Chanhassen in Carver County

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Paying A Higher Realtor Commission For Better Results In Twin Cities?

March 7, 2013

One thing that more people in the Twin Cities and West Hennepin County should be asking is about whether paying a higher Realtor commission to the buyer’s agent will lead to better results.  I know I usually have a discussion with my buyers and sellers to discuss how commissions work and how I get paid […]

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Lake Minnetonka Home Sales February 2013

March 7, 2013

February 2013 saw only 6 home sales close on Lake Minnetonka which was fewer than even the slow month of January.  Each month I plan to outline the sales transactions on Minnesota’s premier lake – you can find my report on the 7 sales in January 2013 here.  As we also noted in a previous […]

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Mound MN Home Sales For February 2013

March 7, 2013

The City of Mound, MN had 9 homes sold during the month of February 2013.  These ranged in price from a $43k bank owned home on Island Park all the way up to an $820k home on Cook’s Bay of Lake Minnetonka. You can get a list, including pictures, of each of these Mound homes […]

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How Accurate Are Automated Home Valuation Sites Like Zillow?

February 21, 2013

One of the ongoing questions in the Twin Cities is how accurate automated home valuation sites like Zillow are at predicting the fair market value for a home?  There are a number of automated solutions out there but the Zillow Zestimate is probably the most well known.  Often times buyers or sellers think they can […]

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Number of Twin Cities Homes On Market At Record Lows

February 19, 2013

The Minneapolis Association of Realtors released their Weekly Market Activity Report yesterday showing the the number of Twin Cities homes on the market is at record lows.  Information from the report included these key statistics – What we are seeing is that inventory is down to 12,225 which is at the lowest point it has […]

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Free Moving Trailer For Buyers and Sellers in West Hennepin

February 14, 2013

I’m excited to announce that RE/MAX Advantage Plus has now helped me make available the moving trailer pictured above for my buyers and sellers of homes in West Hennepin County and the rest of the Twin Cities. This 6 x 12 enclosed trailer includes a nice ramp to allow easy loading.  A similar trailer just […]

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