Frequently Asked Questions and Resources |
A. Frequently Asked Questions
1.
Premium Real Estate Services For Home Sellers
Our
Company provides premium professional services and is a full service
real estate company. We are not a discount or limited service broker.
We do not charge you for “package add-on” fees. We do not charge
minimum down payments or minimum fees, even if your house does not
sell.
We are compensated only when your house sells. If it does not sell during our listing, no fee is owed to us.
Nevertheless, we will provide at our expense, all of the following:
professional photographers and professional home staging assistance,
and top real estate marketing and advertising technology and
techniques.
We will answer your questions about real estate transactions, sales
contracts, offers and counteroffers (and notices relating to them),
title companies, mortgage companies, inspectors, appraisers, and how
the home selling process works.
We will assist you in developing, communicating, considering and
presenting offers and counteroffers (and notices relating to them).
We will accept and present to you all offers and counteroffers that
buyers or their real estate agents may make and we will convey all
information of which we have knowledge that may affect your decisions.
We will represent you honestly and fairly and negotiate the best possible transaction for you.
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2. The Five Key Technical Phases
The
five key phases in a real estate transaction generally are: (1) the
listing and pre-sale or pre-location preparation, (2) the actual
advertising, marketing or locating, (3) the sales contract ( and its
negotiation), (4) the inspection or due diligence period, and (5) the
closing.
We will represent you honestly and fairly and negotiate the best possible transaction for you during all phases.
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3. The MLS– How It Works:
The “MLS” stands for Multiple Listing Service. It is usually run in conjunction with a local Board of Realtors.
The MLS is an independent organization and makes its own rules and
contracting policies. Our company ( and other Realtors™) must comply
with the many rules of the MLS when they use and show homes on the MLS.
MLS is available to its members (such as seller’s Realtor’s ™ ) so they
may list properties for sale to other members of the MLS. On the other
hand, it is also available for buyer’s representatives who are
Realtors™ so they may find homes and properties listed on the MLS for
sale to buyers. Realtors™ pay annual fees and must meet certain
professional requirements to belong.
The MLS requires: a) that a Seller’s Realtor™ state the amount of
compensation or fee that will be offered to a cooperating Realtor (such
as the Buyer’s agent) on sale of a home; and that b) an exclusive type
of listing agreement be in place between our company and it clients.
This compensation (offered via the MLS to the Buyer’s Realtor or agent)
is then usually paid by the Seller when the Buyer’s agent procures a
ready, willing and able buyer from use of the MLS services; it is
usually paid when the sale of the house takes place.
The above is a precondition to the listing of your home on the MLS –
all members of the MLS service (such as our company) and other area
Realtors™ must abide by this -- if they wish to place any home for sale
on the MLS.
Bottom line, if your home is listed on the MLS through any Realtor, you
should be prepared to offer compensation not only to your listing
broker but also to the Realtor that finds a buyer for your home by use
of the MLS services.
Our company is “up- front” about this and clearly advises that if we
list your home on the MLS, you should be prepared to pay a fee to our
company as the listing agent but also to the Realtor that finds a buyer
for your home.
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4. Realtor.Com™
www.Realtor.com™
is a Real Estate website operated by the National Association of
Realtors. Empirical data show “featured home” or “showcased home”
status on Realtor.com provides exposure to: (a) 550,000 hits in the
Austin area monthly and that (b) Realtor.com can provide “first and
second page” rankings on the major search engines such as Google,
Yahoo, AOL, driving more hits to your featured home and (c) guaranteed
hits in excess of 1000 per a single week on a home listed in particular
areas (such as those area in which our company operates). |
5. Austinhomesearch.Com™
www.AustinHomeSearch.com™
is Real Estate website covering the Austin area and is cross referenced
to the Austin American Statesman newspaper real estate advertising
section, and vice versa. |
6. Negotiation Rules
Under prevailing Texas law, the Realtor™ for the buyer that delivers
the offers and counteroffers is not permitted to discuss the specific
terms and conditions of the offer or counteroffer with you, the seller
and our company will relay all material and relevant information to
you, the seller. Also, this procedure should facilitate the sale of
your home as it will assist the buyer’s agent to comply with certain
legal requirements as to how to conduct negotiations. |
7. Information About Brokerage Services
Before
working with a real estate broker, you should know that the duties of a
broker depend on whom the broker represents. If you are a prospective
seller or landlord (owner) or a prospective buyer or tenant (buyer),
you should know that the broker who lists the property for sale or
lease is the owner’s agent. A broker who acts as a subagent represents
the owner in cooperation with the listing broker. A broker who acts as
a buyer’s agent represents the buyer. A broker may act as an
intermediary between the parties if the parties consent in writing. A
broker can assist you in locating a property, preparing a contract or
lease, or obtaining financing without representing you. A broker is
obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with
the owner, usually through a written listing agreement, or by agreeing
to act as a subagent by accepting an offer of subagency from the
listing broker. A subagent may work in a different real estate office.
A listing broker or subagent can assist the buyer but does not
represent the buyer and must place the interests of the owner first.
The buyer should not tell the owner’s agent anything the buyer would
not want the owner to know because an owner’s agent must disclose to
the owner any material information known to the agent .
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to
represent the buyer, usually through a written buyer representation
agreement. A buyer’s agent can assist the owner but does not represent
the owner and must place the interests of the buyer first. The owner
should not tell a buyer’s agent anything the owner would not want the
buyer to know because a buyer’s agent must disclose to the buyer any
material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker
complies with The Texas Real Estate License Act. The broker must obtain
the written consent of each party to the transaction to act as an
intermediary. The written consent must state who will pay the broker
and, in conspicuous bold or underlined print, set forth the broker’s
obligations as an intermediary. The broker is required to treat each
party honestly and fairly and to comply with The Texas Real Estate
License Act. A broker who acts as an intermediary in a transaction:
- (1) shall treat all parties honestly;
-
(2) may not disclose that the owner will accept a price less than the
asking price unless authorized in writing to do so by the owner;
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(3) may not disclose that the buyer will pay a price greater than the
price submitted in a written offer unless authorized in writing to do
so by the buyer; and
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(4) may not disclose any confidential information or any information
that a party specifically instructs the broker in writing not to
disclose unless authorized in writing to disclose the information or
required to do so by The Texas Real Estate License Act or a court order
or if the information materially relates to the condition of the
property.
With the parties’ consent, a broker acting as an intermediary between
the parties may appoint a person who is licensed under The Texas Real
Estate License Act and associated with the broker to communicate with
and carry out instructions of one party and another person who is
licensed under that Act and associated with the broker to communicate
with and carry out instructions of the other party.
If you choose to have a broker represent you, you should enter into a
written agreement with the broker that clearly establishes the broker’s
obligations and your obligations. The agreement should state how and by
whom the broker will be paid. You have the right to choose the type of
representation, if any, you wish to receive. Your payment of a fee to a
broker does not necessarily establish that the broker represents you.
If you have any questions regarding the duties and responsibilities of
the broker, you should resolve those questions before proceeding.
Texas Real Estate Brokers and Salespersons are licensed and regulated
by the Texas Real Estate Commission (TREC). If you have a question or
complaint regarding a real estate licensee, you should contact TREC at
P.O. Box 12188 , Austin , Texas 78711-2188 or 512-465-3960.
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8. Notice Concerning This Firm
THIS FIRM IS
LICENSED AND REGULATED
BY THE
TEXAS REAL ESTATE
COMMISSION (TREC)
TREC ADMINISTERS TWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY
JUDGMENTS AGAINST INSPECTORS AND REAL ESTATE LICENSEES INVOLVING A
VIOLATION OF THE LAW. COMPLAINTS OR INQUIRIES SHOULD BE DIRECTED TO TEXAS REAL ESTATE COMMISSION P.O. BOX 12188 AUSTIN , TEXAS 78711-2188
Texas
Real Estate Brokers and Salespersons are licensed and regulated by the
Texas Real Estate Commission (TREC). If you have a question or
complaint regarding a real estate licensee, you should contact TREC at
P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960. |
9. Fair Housing
U.S. Department of Housing and Urban Development
EQUAL HOUSING OPPORTUNITY
We Do Business in Accordance With the Federal Fair Housing Law
(The Fair Housing Amendments Act of 1988)
It Is Illegal To Discriminate Against Any Person Because Of
Race, Color, Religion, Sex, Handicap, Familial Status, Or National Origin.
Anyone who feels he or she has been discriminated against may file a complaint of housing discrimination:
- In the sale or rental of housing or
- In the provision of real estate residential lots brokerage services
- In advertising the sale or rental
- In the appraisal of housing of housing
- In the financing of housing
- Blockbusting is also illegal
1-800-669-9777 (Toll Free)
1-800-927-9275 (TDD)
U.S. Department of Housing and Urban Development Assistant Secretary
for Fair Housing and Equal Opportunity Washington , D.C. 20410
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10. About Negotiations
10.
Some clients, for various reasons, may decide that they wish to have
the negotiations and have the offers or counteroffers be handled
primarily by themselves and to have these matters go directly to them.
If this is the case in your situation, then we must, according to
certain regulations, advise you as follows:
NOTICE CONCERNING NEGOTIATIONS: If you decide to or do instruct us at
Insight Austin al Estate LLC to not negotiate offers and counter-offers
for you and you also tell us to inform other brokers to submit offers
and counter-offers directly to you, then please take note of the
following:
The other broker will represent the other party in the transaction and
will not represent you. The other broker will advise his or her client
of relevant information related to the negotiations including but not
limited to relevant market data, contractual duties, and negotiating
strategies.
The other broker will inform his or her client of any information the other broker received from you.
You may be placed at a disadvantage if the other party retains the
assistance of a broker or an attorney during negotiations and you do
not.
You should direct any questions about any offer, counter-offer, or any
contractual obligation to your broker and not to the other broker. If
you need assistance in preparing or responding to any offer,
counter-offer, or notice or if you need assistance at any time through
closing you should seek such assistance from us as your broker or from
your independent attorney and not the other broker.
You should not rely on the other broker to coordinate the transaction,
including but not limited to arranging for the completion of your
obligations in the transaction and your performance under a contract.
We as your broker are obligated under law to provide assistance to you
during negotiations.
The amount you pay your broker is negotiable between you and your
broker. The amount you pay your broker may depend on the type and
amount of services your broker provides.
If you have any questions about the notice or receipt of this information please do not hesitate to contact us.
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B. Free Real Estate Resources
1. Email brochure about the present commercial real estate marketplace in Austin - (click here)
2. Email brochure about the present commercial real estate marketplace in central Texas (click here)
3. Guide to Success - Commercial Transactions
Step 1: Plan/Prepare
Today's real estate world requires experience in marketing, financing,
negotiation, contract law, and closing - the very expertise available
from Insight Austin Commercial.
Ideally, you want to be sure that your property is competitive with
other properties available in the community. Step 2: Retain a competent REALTORŪ
Insight Austin al Estate principals are experienced real estate experts
with credentials such as membership in the Texas College of Real Estate
Attorneys and Masters’ degrees in business.
Insight Austin al Estate is one of the few real estate companies in the
Austin area that has exclusive rights to advertise “Featured
Properties” on-line in the pre-eminent Realtor.com national real estate
search engine.
Insight Austin al Estate members must adhere to a strict Code of Ethics.
Step 3: Set the Price
Several factors, including market conditions and interest rates, will
determine market value. The idea is to get the maximum price and the
best terms during the window of time when your property is being
marketed.
Step 4: Market It
Insight Austin al Estate is one of the few real estate companies in the
Austin area that has exclusive rights to advertise “Featured
Properties” on-line in the pre-eminent Realtor.com national real estate
search engine.
Negotiation: We assist clients in the bargaining process, offering
advice and counsel as offers are received and by working closely with
legal counsel, tax specialists and inspectors as required.
Closing: Once a contract has been accepted, a series of inspections and
checks are typically required to satisfy buyers and lenders.
Virtual Tour: Insight Austin al Estate generally provides a “Virtual
Tour” of your property (a professional video ) so that prospective
buyers may view it “on line” at Realtor.com or on Insight Austin al
Estate’s own website.
Step 5: Sell It
Because a property sale involves an array of both personal and business
concerns, it's important to get it done right. The old motto "be
prepared" is a good guide in such circumstances.
What's an acceptable offer?
The goal of every seller is to have a line of buyers outside the front
door, each clutching higher and higher offers. And while this has been
known to happen, in most markets there is some balance between the
number of buyers and sellers. A number of factors determine whether a
buyer's offer is acceptable. They include:
- Is the offer at or near the asking price? Is the offer above the asking price?
- Has
the buyer accepted the asking price or something close? Has the buyer
then buried thousands of dollars in discounts and seller costs within
tiny clauses and contract additions?
- What
is the alternative to the buyer's offer? If a property has not
attracted an offer in months, then sellers need to determine if a
better deal is possible -- recognizing that each month costs are being
incurred for mortgage payments, taxes and insurance.
- Does the owner have enough time to wait for other offers?
- What if no other offers are received?
- What
if several offers are received? Do you choose the high offer from the
purchaser with questionable finances who may not be able to close, or a
somewhat lesser offer from a buyer with preapproved financing?
In
each case, owners will need to carefully review offers, consider
marketplace options and then determine whether an offer is acceptable.
Offers and counter-offers reflect the back-and-forth activity of the
marketplace. It's an efficient and practical process -- but also one
that may contain tricky clauses and hidden costs.
Real estate bargaining typically involves compromises by both sides.
It's not war; it's not winner-take-all; and it's not the time to take
personally any comments made by purchasers.
Instead, negotiating should be seen as a natural business process;
buyers should be treated with respect; and owners should never lose
sight of either their best interests or their baseline transaction
requirements. These are the standards unique to each owner, which must
be met before the property can be sold. Step 6: Close
It might seem as though once a sale agreement has been signed that the
selling process is complete. Not only is it not over yet, but some of
the most complex aspects of a real estate transaction now begin.
A sale agreement sets not only a purchase price for the home, but also
a series of terms and conditions. For instance:
-
Contracts routinely depend on the ability of a buyer to obtain
financing, which is why most sellers prefer buyers with preapproval
letters from lenders.
- Transactions involve an inspection, or a physical review by an independent observer.
- Lenders
will establish numerous conditions before granting a loan. They will
want a title exam, title insurance to protect against title errors,
termite inspections, surveys and an appraisal to assure that the
property has sufficient value to secure the loan.
Closing
-- or "settlement" or "escrow" as it is known in some areas -- is
essentially a meeting where the closing agent (the party who conducts
settlement) takes in money from the buyers, pays out money to the owner
and makes sure that the purchaser's title is properly recorded in local
records along with any mortgage liens.
The
closing agent reviews the sale agreement to determine what payments and
credits the owner should receive and what amounts are due from the
buyer. The closing agent also assures that certain transaction costs
are paid (taxes and title searches). Closing is also the time when
"adjustments" will be made.
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C. Reasonably Priced Professional Resources for Commercial Practitioners
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