So what's included in the Hauseit 1% for full-service listing option? We'll demystify this topic in the following video.
My name is Chris at Hauseit. Hauseit is the largest
assisted for sale by owner and buyer agent Commission rebate company in New York City established in 2014.
The 1% for full-service listing option is a
comprehensive
full-service listing just like you would receive at any other
traditional brokerage firm in the city or across the state. The listing comes with
professional photography and
a custom 2D floor plan. Both the professional photos and the floor plan
will be taken and drawn at the same up to 1 hour appointment at a time and date of your choice. All showings
Including private appointments and open houses will be taken care of by one of our partner agents, and speaking of showings
you will have one point person, one lead listing agent throughout the entire process though
of course, our teams are rather large and there will always be a person for backup
should the point person not be available for a showing. We also offer comprehensive,
industry standard
listing syndication to up to hundreds of third-party websites many of whom you've heard of such as StreetEasy, Zillow Trulia
Realtor.com
New York Times, Homes.com and so on.
Your listing will also be co-broked in the relevant MLS or the RLS in New York City for your region. All
scheduling
coordination and negotiation with buyers, buyers agents and managing agents will be handled by the
partner agent. This also includes any scheduling and coordination with the tenant if there is a tenant in place. If it is a condo,
co-op or condop building with a purchase application
then the listing agent will be
able to help out with the buyer's agent or the buyer if it is a direct buyer on the purchase
application in terms of answering any questions
the buyer through it and perhaps assembling the board package. Pricing assistance is also
Included in the 1% for full-service listing option
Usually our seller customers are very confident of where they wish to list it at and they know the comps in their building and their neighborhood.
However, if you are unsure
we can always put together some comps, put together a comparative market analysis and give you an idea of
where you should price your home to be most competitive on the market. Keep in mind that the initial listing price is
agreed upon by both parties,
and the reason for that is the listing price must be
reasonable and there must be a chance of selling it as obviously we cannot commit resources
to marketing a listing and
having agents run around and show up properly if it is priced much too high and no one will show up.
However, please rest assured that we are very reasonable,
so if there is a good chance of selling it we will certainly do our best to try and we are
usually quite amenable to the listing price that owners suggest. Now
let's answer some common questions that sellers typically ask about the 1% for for service listing option.
Is there a limit to the number of open houses that can be held?
No.
Our teams are happy to hold open houses every Sunday as long as folks show up and there are interested buyers
if for some reason the property is overpriced and the market has clearly demonstrated such and
Folks don't show up at open houses
Then we certainly should talk as we cannot commit resources to have agents sit around for two hours every Sunday at an empty open house.
How does the commission structure work and is commission only paid at closing?
Yes, commission is only paid at closing if it closes.
The commission structure as you might already know is 1% to the listing broker
Plus 2.5% or 3% to a buyer's agent.
The reason you want to offer something market rate to buyers agents is because 90% of all buyers or so are represented by a buyer's agent
Even though 3% is more common,
2.5% is certainly something you can get away with in the New York City metro area.
And keep in mind that commission rates can vary and other parts
For example, if you get further away from core New York City like northern Bronx or Eastern Queens
You might see different or lower Commission structures or norms
So to recap it would be 1% to the listing broker plus 2.5% to the buyer's agent.
If the listing broker found a direct buyer
then the listing broker would waive the 1% listing fee and only keep the buyer agent fee of
Let's say two and a half percent or three percent
So assuming that the co broke is two and a half percent
Then your total cost for full-service is two-and-a-half percent or more likely three and a half percent
versus six percent all in. Why is the Commission not 1% if the owner
helps introduce a direct buyer? The reason that most full-service listing arrangements are
exclusive right to sell listing agreements is because such an arrangement where the listing broker gets paid
regardless of how the buyer is procured
reduces conflicts of interest between the seller and the
listing agent. As
you can imagine, if there is a different commission structure for the owner procuring a buyer versus the listing agent
It can get quite dicey and it could lead to
arguments and conflicts between the listing agent and his or her client over who actually procured the buyer.
For example, let's say that the owner claims that George a buyer
was his or her friend that she spoke with last week,
however
George may also have inquired directly on the property via StreetEasy or Realtor.com and
Contacted the listing agent as well or George could have walked in and spoken with the listing agent
At last Sunday's open house. So in this case who actually procured the buyer we avoid these types of
conflicts by having an exclusive right to sell listing agreement
which is the standard for full-service listing agreements, and this way
you don't have to worry about any potential conflicts and keep in mind
you certainly don't want to discourage the list broker from showing his or her own listing.
Any buyer is worth two and a half percent or 3 percent on another listing,
so certainly wouldn't make sense for our listing brokers to quote-unquote shoot themselves in the foot by showing their own listing
Are there any other fees for example?
Professional photos and a floor plan are those included or you have to pay for them?
First of all, let's say that unlike other firms
Our partner brokerages don't charge a traditional marketing expense reimbursement clause of say a thousand two thousand or more if it doesn't sell
Instead our partner brokerages levy a three hundred dollar
essentially credit card, hold up front
to partially cover the cost of the professional photos and the floor plan which are yours to keep. If it sells
these are technically free because you can simply send an email to our partner brokers and they'd be happy to reduce the Commission by the
Three hundred dollars. If however they don't hear from you on day two,
you are free to use the photos and the floor plan at another time
if you wish, please keep in mind that our partner brokerages are taking a significant haircut and
commission and
therefore by
paying three hundred bucks up front to partially cover the cost of the professional photos lets you put some skin in the game and
demonstrate that you are also serious about this transaction. Is there a time limit or a tenor for the listing agreement?
Yes, our listing agreements are 180 days or six months, which is industry standard.
The reason for this is as of this filming
the average days on market from being listed to in contract for the New York City market is approximately four months.
We would certainly not want it shorter listing agreement because the listing agreement would then expire before?
Statistically the listing is able to get into contract
Can you cancel
the listing agreement if something goes wrong,
or if I change my mind or if I decide to move back into my apartment and not sell?
Technically, the listing agreement can only be modified by mutual agreement by both parties.
However, no one can force you to show or sell your apartment. If you decide to not sell, well
no one's going to force you to sell it. It's as simple as that.
The agreement is in place to protect the
listing broker from very rare situations such as a buyer being procured and the
seller trying to go around the listing broker in order to not pay commission.
Please keep in mind that our listing brokers are
very reasonable business minded people and if for some reason a personal situation like this occurs,
Please simply speak to the listing broker and we can sort it out
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