My clients have saved over $2,800,000 in commissions
I got tired of seeing my clients overpay for Realtor services and getting little or incompetent representation. I set out to prove that you can have a lawyer do everything a Realtor does, provide legal advice, and do it for a lot less money and better terms. I may charge less, but I still make far more than my hourly rate. It is my hope to train attorneys around the country to do what I do. I have proven the concept and my clients love it. Just read the reviews.
Recently I refunded over $100,000 in commissions to just one client and my client received far more service than they could have ever received from a Realtor.
Realtors are NOT free
Buyer agents love to tell clients that it doesn’t cost anything to work with them. And that lie costs consumers billions of dollars every year in lost commission negotiations. In the Twin Cities area (Minneapolis and St. Paul) most listing agents have illegally price-fixed the buyer broker commission at 2.7% of the purchase price. That works out to $13,500 on a $500,000 house and that is certainly NOT free.
A common Realtor trap is to illegally delay the signing of a Buyer Representation Agreement until the Purchase Agreement is signed. The licensing law states that this practice is illegal (click here and see Subd 2). As a result of this bad practice, buyers rarely are given an opportunity to negotiate the terms and fees of their buyer broker agreements and the contracts that they end up signing are anticompetitive and anti-consumer. I help clients negotiate these contracts – so feel free to ask even if you decide to work with someone else..
The entire system is set up to artificially inflate the buyer brokerage fees. First, they hide their fees from you and then they trick you into signing a fee agreement that you can’t cancel and entitles the Realtors to outrageous fees. I want to change all that.
Buyer agents get paid the same absurd amount regardless of their training, expertise or education – they grab whatever commission is being offered to them by the listing (seller’s) broker and often without their own client’s knowledge. That’s hardly a negotiation. You’re lucky if they even disclose to you how much they are getting paid.
Have you heard about commission rebates? Commission rebates are the only way that buyers can negotiate the amount of a buyer agent fee. In a typical transaction, if a buyer agent agrees to a lower commission, then the remainder automatically goes to the listing agent. Their contracts make it impossible to negotiate their fees. Because of their unfair payment system, the ONLY way to negotiate their fee is to negotiate a commission rebate. I take it one step further and refund the entire commission to my clients (less my legal fees). Note: I also include numerous consumer-friendly clauses in my contract.
Here is how it works. If you hire a Realtor to help you buy a $550,000 house, your buyer broker will likely collect $14,850 (2.7% of $550,000) at closing. Just because the opposite side of the transaction is offering your agent a bribe, doesn’t mean you have to allow it. I collect that same $14,850 and refund the entire amount to you (less my legal fees which is around 1%). My typical legal fee for a transaction this size is $6,375. You get $8,475 back in this example. And unlike Realtors, I only get paid if the transaction closes.
The rewards on higher priced homes is even greater. As an example, if I help a buyer on a 2.5 million dollar home, the commission payable to me is likely going to be 2.7% ($67,500). My fee will be around $25,000 and my clients will receive a refund of around $42,000. I can not think of any good reason to pay a buyer broker sixty seven thousand dollars. Can you? If I put in 20 hours on a file like this, I’m still getting $1250 an hour.
Another example; if I help a client sell a 3 million dollar home and we (either the seller or I) find a buyer who is not represented by a broker, the savings becomes absurd. A Realtor would likely collect $180,000 for doing very little work. In this example, my fee would be around $30,000 and my clients would save $150,000.
And if you think you are getting elite service from a high-end Realtor, you are not. They just dress nicer and drive nicer cars. Learn more about the traps that Realtors set for sellers here.
I help clients all over the Twin Cities market and beyond. Whether it be Excelsior, Eden Prairie, Lake Minnetonka, St. Paul, Arden Hills, Blaine, Stillwater, Northfield or even St. Cloud, I can usually help. I have helped people from St. Cloud to Northfield to Stillwater.