Seller FAQ's
What is your Broker Direct List for LE$$ program?
The Broker Direct List for LE$$ reduced fee marketing program puts Seller’s in direct contact with Michael Pacaud, the licensed Broker of Record and Realtor, who will handle the transaction from beginning to end. This eliminates the Real Estate Sales Agent in the middle, thus allowing for a lower commission fee to be passed on to the home seller(s).
Who is Expert Real Estate Services?
Expert Home Loan and Real Estate Services, Inc., is a full service Real Estate Brokerage offering wholesale Real Estate listing, purchase, financing and management consultation services in Southern California. Michael Pacaud is the founding President, licensed Broker of Record, Primary Consultant and Realtor since 2007.
Are Michael and Expert Home Loan and Real Estate licensed by the state of California?
Yes, Michael's Broker license number is 01801084. The license number for Expert Home Loan and Real Estate Services Inc. is 01817635.
Who is Michael Pacaud, Real Estate Broker, Orange, California?
Real Estate Career: Michael has been in the real estate and finance industry since the mid-1980s. He worked extensively in consumer credit lending, mortgage banking and loan underwriting before becoming a licensed real estate broker in 2007.
Specialties and expertise: As a Real Estate Wealth Advisor Michael helps home seller's and buyer's to acheive their goals while educating, guiding and helping them build significant net worth and financial stability through real estate acquisition and investment.
What is a Flat Fee Real Estate Service Brokerage?
When a Real estate agent or Broker charges a flat fee instead of a percentage of the sales price as commission. This Broker Direct Program is a Hybrid offering a choice of either a Flat Fee or low 1%-1.5% depending on the sellers needs and choice of marketing plan.
What is the difference between a “Discount Broker” and the “Traditional Broker”, Full Service Brokerage models?
Traditional Real Estate Brokerages typically have many Real Estate Agents or “Realtors” working as 1099 contractors for the Brokerage having written contracts with each agent splitting the commission fees charged to the seller or buyer. This Traditional model comes with many overhead costs such as rent, utilities and insurance that increases the Brokers overhead and in turn the minimum commission rate Broker’s require their agents to negotiate with Sellers and Buyers.
By taking advantage of our Broker Direct Full Service representation and working directly with the Broker, Seller's can receive the same or better full standard services that a Traditional full-service real estate agent provides for less, due to lower overhead costs and by eliminating a 1099 commissioned real estate sales agent.
Does using a Discount Broker mean sacrificing Quality and Expertise to cut cost?
Despite offering lower fees, Michael maintains high service standards and works diligently to ensure a smooth transaction process. Past client 5 Star reviews on Zillow attest to the high quality of service consistently provided by Michael. It’s your equity, put more of it in your pocket at close of escrow, not in an agent’s pocket.
Why do some high priced listing agents say flat fee/discount agents don't provide full service?
Full Service typically means listing your home on the MLS, marketing, professional photography, negotiating offers, handling all the paperwork and all other customary representation and services. The proof is in my results. Remember, traditional high priced agents have a lot to lose if you list elsewhere for less. With new disruptive new technology and brokerage models changing the real estate industry and how many real estate agents look at commission splits, the industry is experiencing many top-producing real estate agents shifting towards high-volume, lower-commission real estate franchises.
What is the total commission I would pay Expert Real Estate Services to sell my home?
We offer discounted Listing commission rates as low as 1.00%. For Orange County properties the commission is either a $7000 Flat minimum for properties sold for less than $850,000 or 1% of the agreed sales price for homes sold over $850,000. The seller may or may not choose to negotiate and pay a Buyer's Broker commission based on current market conditions. Expert Real Estate Services will help the seller to negotiate any requested Buyer Broker sales commissions. Please see the Services and pricing chart for all of our Listing service options.
Why don't you charge 2-3% to list homes like other agents?
Michael believes in providing value to his clients. By going Broker Direct you not only get the benefits of lower overhead and no middleman agents but you have access directly to Michael’s 40 years of Real Estate sales, investing and lending experience. When we do a great job and provide a valuable service you are more likely to refer us to your friends and family. That leads to a long term stable business model.
How are you profitable if you only charge 1%?
In 2019 & 2020, COVID 19 changed the workplace environment for many industries including the real estate sales industry. Michael, as a Broker Realtor, works from his home office in the city of Orange and does not waste money on brick and mortar offices or other unnecessary things. If it isn't required to do business, does not make him more efficient or help clients to sell faster for more, we don't waste money on it!
Are there any hidden fees and/or fine print?
NO. Please see the Broker Direct List for LE$$ Services chart. While the Basic Listing Service plan offers a la carte upgrade options, they are at the seller’s choice and if requested will be added in writing to the Broker/Seller Listing agreement. 100% transparency.
How do real estate commissions work?
Real estate commissions are negotiable between the listing agent and their client. Many charge certain percentages of their sales prices, where some list a home for flat fees. Historically real estate brokerages share and offered commission sharing with other brokerage companies. Real estate agents have agreements with their brokerage companies about how much of their earned commissions they share with their brokerages. In many cases their brokerage will have a minimum commission requirement and reduce the agents split if the negotiated commission is below the brokerage set minimum requirement to discourage Agents from offering Home Seller's a lower commission rate. Effective August 2024, a Listing agent/broker can only negotiate the Listing agent/broker compensation with the seller. Any commission requests for the Buyer's Agent/Broker compensation must be presented in writing with the Buyer's purchase offer as a seller concession to the buyer and is 100% negotiable.
How do new 2024 real estate sales commission laws affect home sellers?
The new real estate sales commission laws of 2024 have made some of significant impacts on home sellers and buyers.
The Listing Agent/Broker No Longer negotiates the amount of commission to be offered to Pay the Buyer’s Agent/Broker. Traditionally, the listing agent’s agreement with the Seller was to pay 5-6% of the sale price with the total amount split between the Listing Agent/Broker and the Buyer's Agent/Broker. With the new rules, sellers are no longer mandated to pay the buyer’s agent’s commission, although they might still opt to do so to stay competitive.
Private Compensation Negotiation: Previously, compensation offers were listed on the MLS (Multiple Listing Service). This is no longer allowed. Now, sellers need to discuss and negotiate any potential compensation. The Listing agent will assist with and negotiation of any Seller Concession to the buyer to pay for the buyer’s agent commission.
Sellers need to be more strategic about their listings and how they negotiate commissions. Some sellers may find this beneficial as it provides more negotiation leverage, but it also means additional complexities in transactions.
Buyers, meanwhile, will be required to sign an agreement with their own broker before starting to view homes. The buyer and the agent must agree, and put in writing, how much the agent can expect to receive from the buyer.
These changes are intended to provide greater transparency and fainess in how much seller's pay in commission fees but whether that actually happens is yet to be determined.
Why did the Federal laws change regarding negotiation of seller and buyer agent commissions in 2024?
Lawsuits alleged that the structure helped Agents and Brokers to keep home seller commission fees higher than they would be otherwise. It also meant a seller had to pay the agent representing the buyer side of the deal, a practice many observers thought was inappropriate. The fact is that commission rates have ALWAYS been negotiable, however, as of August 2024 the buyer’s broker commission can no longer be negotiated at the time a listing contract is signed. Any commission paid to a buyer’s agent/broker must be negotiated as a Seller concession to the Buyer at the time the buyer presents a written offer.
How much commission do real estate agents actually get paid?
This is where things get tricky. Real estate commissions are always paid directly to the agent’s Real Estate Broker. Every real estate agent has a written agreement with their Broker that breaks down how much the agent will receive out of the total commission, also known as a commission split. Some brokerage companies split the commission 50%/50% with their agents. Some agents receive 60%, and their broker gets 40%. Sometimes, the agent’s split can be 70%/30% or even 80%/20% between them and their companies. For new or low volume agents the Broker often keeps as much as 50% of the commission. In addition to the split, there are other administrative fees charged for items such as: Desk fees, E&O insurance, file audits, Transaction Coordination, marketing, etc.
What other costs or expenses do real estate commissions cover?
Once the agent receives their split of the commission, they still need to cover many other out of pocket expenses such as hiring a professional photographer to take listing photos and/or Drone video shots. The For Sale sign that your listing agent puts in the front yard costs money. The agent also pays (MLS) Multiple Listing Service dues which gets the property exposed to all member brokers and agents as well as online posting to the general public. They buy expensive electronic key lockboxes that require a monthly subscription fee to operate in order to provide secure trackable agent access when showing the property. They may also create and print flyers or brochures for your home. Sometimes the agent will pay for ads in print magazines, create a dedicated property web page or send out broadcast e-Flyer notifications to Agents and Brokers announcing a new property for sale or an Open House. Open House signs and shoe covers to wear while viewing the inside of the home are other common expenses for real estate agents. All of these items and more are the agent’s expense and not the Broker’s.
When listing a home, how do you Market it?
It depends on which Marketing Plan you choose however, all Full Service Marketing plans include: Sign in the yard with QR Code, Multiple Listing Service, ALL Real Estate websites (like Zillow, Realtor.com Redfin and hundreds of others), All Real Estate BROKER websites (like C21, Keller Williams, Firsteam, etc), All Real Estate AGENT websites. Countywide E-flyers are sent to all agents and broker’s announcing the new listing and any upcoming Open House. Open House Dates posted on internet to the Public, dedicated webpage with property photos and details. Please see our Listing Marketing Plans Matrix for details.
What is a QR Code?
A QR code, short for Quick Response code, is a type of matrix barcode that can store a significant amount of information compared to traditional barcodes. QR codes can be scanned using a smartphone which then quickly links the smartphone to a website containing the property details and photos. QR Codes can be posted as a Rider to yard For Sale signs allowing anyone who scans it to immediately have access to the details and photos in the property listing.
Do you offer advice on preparing my home to sell?
Absolutely! You will notice on our Broker Direct List for Le$$ Services matrix that a Marketing Consultation, Home Preparation recommendations and Handyman, Painter, flooring, landscaping & contractor referrals are all included in both the Full Service 1% Listing Standard and the Full Service 1.5% Listing Premier program.
Do you offer pricing advice?
Absolutely! While you as the seller will make the final determination of the listing price. Michael will complete an in-depth market research to locate the most similar recently sold homes and generate a comprehensive Comparative Market Analysis providing facts to help determine pricing and how fast homes are selling in the current market.
How fast will my home sell and what will it sell for?
Unlike many agents, we won't make a promise that we don't have the power to keep. We can give you a good idea with a comparative market analysis but we would rather under promise and over deliver.
Do I (as the home seller) have to do any work?
Only if you go with our FSBO MLS Marketing package, otherwise we are FULL SERVICE and will handle everything from listing to closing. You will be responsible for keeping your property ready to show but that's it, we do the rest.
Do you provide a lockbox?
Yes, every home gets an electronic bluetooth Realtor-only lockbox to keep your home secure unless there is a special circumstance. These lockboxes track the time each agent opens and closes the lockbox and allow for sending an automatic showing feedback request to the showing agent.
What are the Top 5 reasons to hire a Realtor to sell my home?
There are many reasons why hiring a Realtor can be beneficial when selling your home. Here are the top five:
Expertise in Pricing and Market Knowledge: Realtors have access to comprehensive market data and can accurately price your home to attract buyers while ensuring you get the best value. Their knowledge of market trends, neighborhood specifics, and buyer preferences is invaluable.
Effective Marketing Strategies: Realtors have the resources and know-how to market your home effectively. They can create professional listings, use high-quality photography, virtual tours, and advertise your property on multiple platforms to reach a broad audience.
Professional Network: Realtors have connections with other real estate professionals, including other agents, inspectors, contractors, and potential buyers. This network can help you find qualified buyers quickly and navigate any issues that arise during the selling process.
Negotiation Skills: Selling a home involves negotiating with buyers, and Realtors are skilled negotiators. They can advocate for your interests, handle offers and counteroffers, and ensure you get the best possible deal.
Handling Paperwork and Legalities: Selling a home involves a significant amount of paperwork and legal documentation. Realtors are familiar with the required forms, disclosures, and regulations, reducing the risk of errors and ensuring a smooth transaction.
Hiring a Realtor can save you time, reduce stress, and potentially increase the sale price of your home.
What factors affect the value of a home being sold?
Several key factors can influence the value of a home being sold. Here are some of the most important ones:
1. Location
Neighborhood: Desirability of the neighborhood, proximity to amenities like schools, parks, shopping centers, and public transportation.
Crime Rates: Lower crime rates usually lead to higher property values.
School Districts: Homes in well-rated school districts tend to be more valuable.
2. Property Condition
Age and Maintenance: Well-maintained homes, even older ones, tend to retain or increase in value.
Upgrades and Renovations: Updated kitchens, bathrooms, and other key areas can significantly boost a home's value.
3. Size and Layout
Square Footage: Larger homes generally have higher values.
Number of Bedrooms and Bathrooms: More bedrooms and bathrooms usually increase a home's value.
Layout: Functional and modern layouts are more appealing to buyers.
4. Market Conditions
Supply and Demand: High demand and low supply drive up home prices.
Interest Rates: Lower mortgage interest rates can increase buyer affordability and drive up prices.
5. Comparable Sales
Recent Sales: The sale prices of similar homes in the area (comps) are a strong indicator of a home's value.
Market Trends: Trends in the real estate market, including price increases or decreases, also affect home values.
6. Economic Factors
Employment Rates: Higher employment rates and local economic growth can boost home values.
Overall Economy: A strong economy generally supports higher home prices.
7. External Factors
Zoning Regulations: Changes in zoning laws can impact property values.
Future Developments: Planned infrastructure improvements or new developments in the area can increase property values.
8. Curb Appeal
Exterior Condition: A well-maintained exterior, landscaping, and overall curb appeal can attract buyers and increase value.
First Impressions: Buyers often make quick judgments based on their first impression of a property.
These factors, individually and collectively, play a crucial role in determining the value of a home. By understanding and considering these factors, sellers can better position their property to achieve the best possible sale price. Would you like more information on any specific aspect of home value?
What are the typical challenges with For Sale by Owner homes?
Going the FSBO route can indeed be tempting, but it has its share of challenges:
Pricing Errors: Accurately pricing a property requires understanding market trends and having access to comprehensive market data1. Without this, FSBO sellers often end up overpricing or underpricing their property, leading to prolonged market time or lost opportunities.
Limited Exposure and Marketing: Real estate agents have access to multiple listing services (MLS), advertising platforms, and a network of other agents. FSBO sellers might struggle to achieve the same level of exposure, limiting the number of potential buyers.
Negotiation Challenges: Negotiating with potential buyers requires a balance of assertiveness and diplomacy. Real estate agents are skilled negotiators who can advocate for their clients’ interests. FSBO sellers might find it challenging to navigate negotiations effectively, which could result in less favorable terms or deals falling through.
Legal Complexities: Selling a home involves various legal documents and disclosures. Without professional guidance, FSBO sellers might face legal risks if they fail to provide necessary disclosures or make errors in the contract paperwork.
Hidden Costs: While you might save on agent commissions, other costs such as advertising, legal fees, and potential buyer agent commissions can add up.
Time and Effort: All the work falls on the seller's shoulders, which can be overwhelming without professional real estate experience.
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