Q: Your sign said Home Warranty, so why didn’t you give me one when I bought the house?
A: You were not my customer. You didn’t use me as your agent; you used another agent to buy the house. I give a home warranty or a Lowe’s card valued at $400 to buyers of my listings who use me as their agent.
If you prefer to use another agent to submit your offer to buy one of my listings, that’s fine, but you miss out on the home warranty or the Lowe’s card.
When you’re my customer as a buyer you also help the seller because I then reduce the commission to 4% of the selling price. So you get a home warranty or a Lowe’s card, and the seller gets a reduced fee for my services. We all win.
When you’re my customer I don’t have to split the commission 50-50 with another company. Therefore, I can work for less and still give both buyer and seller full service.
How can I afford to do this? It’s because of my low operating costs. I don’t maintain an office, which is a big expense for a real estate company. By working from my home I have no additional costs for utilities, maintenance, insurance, property taxes, extra furniture or employees.
Real estate transactions today are done electronically to a large extent. These transactions do not require a separate office. I have the electronic equipment needed to conduct a real estate brokerage business from my home.
An office with nice furniture may be impressive, but someone has to pay for everything. Guess who. The seller pays a sales commission – a fee for services – that covers the broker’s operating costs.
At the same time, think about this: Where does the seller get the money to pay the broker? He gets it from the buyer. As the buyer, wouldn’t you rather help the seller pay a lower fee while you receive a home warranty or Lowe’s card?
Michael Dixon Realty voluntarily offers to give sellers a break on their commission and buyers a home warranty or a Lowe’s card when they are my customers. It’s my way of saying “Thank you” for your business.