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Some times people give you this impression that they do not like to make tens of thousands dollar without lifting a finger!

I am a real estate broker in Bay Area California. As a part of my advertisement, I share my commission with my customers. The reaction to this huge incentive so far has been very cool.

I ask myself why? Here I try to speculate about the reasons. If you have any other answer, please call me at (510) 395-1267 and share your thoughts.

My first guess is lack of knowledge. People buy one or two homes in their lifetime. Buyers do not really know who pays the commission in United States of America. Most of the buyers will go directly to listing agents to purchase their homes. By doing so they will jeopardize a lot. Buyers do not generally understand that by going to listings agents they will not save any money. This is mostly true for first time homebuyers. They research the market very carefully and find their dream homes. They expect rightfully to get paid for their efforts and go to listing agents. Most of the time the listing agents will tell them that they can not get paid for finding their own home and invoke the real estate law. I have to say according to the law making money without a real estate license is illegal, but there is an exception. When you purchase a home for yourself you can make money on the commission as agents do! Nobody ever has told buyers about this exception in the law!

Maybe people think that there is always a catch. They cannot believe that they can purchase the same home, with the same contract and the same price and term and get paid as well, if they purchase their home trough the right agent. After all there is no free lunch, right? Partially right. Say there is an agent who makes $50,000 when you purchase a home trough him. If he or she gives you half of the money, somebody might consider it free lunch, but from the agents point of view it is an incentive to make $25,000. Of course somebody has to pay this money, but that somebody (seller) is only interested to sell his home and care less about who gets the commission.

Maybe people are suspicious to see a small company paying their customers while big companies are unable to do it. It is not so much that big companies are unable to do it. They do not have to do it to attract customers. Always big dogs do not have to do a lot but underdogs in these case small real estate companies have to do more for their customers to survive.

Maybe buyers are afraid that their transaction, money, information are in risk dealing with smaller companies. To these people I have to say, regardless if you deal with big franchise companies or small companies almost all the transactions will be handled by few escrow companies and you have right to decide which escrow company will handle your transaction. Regarding other financial information if you do your loan with other companies you do not have to provide your real estate broker with your financial information.

I am always curious to know, why people do stupid things that will cost them thousands of dollars. When was the last time you purchased a home and did not get paid for it?

Can you please tell me why? Maybe you simply did not know. In This Case From now on there are no more excuses, Because you know now.

Tell your friends and families so they know too.

Regards

Broker Of American Dream Realty

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