Welcome to the Future of Real Estate! Welcome to Baron & Chestney Real Estate!
If any of the following references seem unclear to you, please refer to the “Real Estate 101” section of our website for more clarification. Real Estate 101 is a simplified fictional real estate story that walks beginners through a simple purchase/sale of real estate. The Real Estate 101 “course” is useful in helping us to illustrate several key points that set Baron & Chestney Real Estate and our unique real estate business model apart from our realty competition. If you are still confused after reading Real Estate 101, please use “ASK B & C“.
1. The difference between a real estate Broker (Mr. Broker, Mr. Buyersbroker) and a real estate sales agent (Miss Agent): all real estate sales agents in California MUST be employed by real estate brokers, per state law. Real estate sales agents cannot legally work for themselves. They cannot be paid a commission, either, unless it is routed to them through their employing real estate broker. Real Estate sales agents generally do not have the real estate training, experience, or knowledge that a real estate broker has. There are far more real estate sales agents than there are real estate brokers, as it is much easier to obtain a real estate sales license than it is to obtain a real estate broker’s license … Every real estate sales person’s license must be held by the real estate broker who employs them, who is responsible for managing, supervising, and overseeing all of their real estate activities. Of course, the real estate brokers take a hefty “cut” of the real estate commission in exchange for doing so — generally 50% or even more! This cost, of course, gets passed on to home buyers and home sellers in the form of the outrageous 6% real estate sales commission. The more chefs in the kitchen, the more expensive the meal, as the saying goes. At Baron & Chestney Real Estate, WE DO NOT USE REAL ESTATE SALESPEOPLE. WE ARE REAL ESTATE BROKERS. OUR ONLY “BOSS” IS YOU. You are dealing directly with a discount real estate broker, rather than subsidizing the inflated salary of an office broker that you will never meet.
2. The meaning of the word REALTOR. Real estate brokers and real estate sales agents can both join the National Association of Realtors (and/or California Association of Realtors, as well as local realtor groups, like the San Francisco and San Mateo county boards of Realtors, for example). However, they must pay dues, meet certain educational requirements, and , most importantly, subscribe to a very stringent code of real estate ethics that is far more restrictive than the actual real estate laws. State laws have many “grey” areas that involve behavior in real estate that may be LEGAL, yet UNETHICAL. A Realtor will not do something unethical. A real estate agent or real estate broker who is NOT a Realtor cannot legally break the law– but they could certainly do something that is unethical, yet still LEGAL under state law. This is an important point and a huge distinction. At Baron & Chestney Real Estate, all of our discount real estate brokers are REALTORS. OUR DISCOUNT REALTORS ALL ADHERE TO THE STRICTEST REALTOR CODE OF ETHICS.
3. Miss Agent knows what is going on with your transaction. Don’t you wish that EVERYONE in the real estate industry did? WE SURE DO!!! WHEN YOU CALL BARON & CHESTNEY REAL ESTATE, YOU WILL NOT SPEAK TO A RECEPTIONIST WITH NO KNOWLEDGE OF THE FIRM’S REALTY LISTINGS, OR, PERHAPS WORST OF ALL, THE INEXPERIENCED “FLOOR AGENT” WHO ALSO HAS NO KNOWLEDGE OF THE REAL ESTATE FIRM’S LISTINGS, YET STILL TRIES TO SELL THEM TO YOU ANYWAY! When you call Baron & Chestney Real Estate, you will speak to a discount realtor who will be knowledgeable.
4. The realtor commission was 6% of the purchase price of the home. Under California law, the real estate sales commission rate is NOT set in stone – it is, rather, ENTIRELY NEGOTIABLE! This is VERY important!!!In fact, NEGOTIABLE REAL ESTATE COMMISSIONS ARE WHAT BARON & CHESTNEY REAL ESTATE IS ALL ABOUT!!! When you list your home for sale with Baron & Chestney Real Estate, you will NEVER pay a realty commission of more than 4% in TOTAL, and you could pay as little as only a 2% realty commission in TOTAL to sell your home through a Baron & Chestney discount realtor.
5. The HOME SELLERS pay the real estate commission in any real estate transaction, NOT the HOME BUYERS. WHY? This is simply the tradition in a real estate transaction — in the bay area, in California, and, in fact, nationwide — it simply IS. Just as it is customary in our country for a buyer to pay the sales tax whenever an item is purchased, as opposed to the merchant who is selling the item to them, in real estate, the custom is reversed, and the seller instead pays the commission. (The logic behind this custom most likely lies in the fact that the home buyer will already be faced with many large expenses in making a home purchase, especially including the closings costs, so having the seller pay the entire real estate sales commission is a gesture of cooperation and good faith on behalf of the home seller that also covers a very substantial cost in the transaction and therefore lightens the financial burden on the buyer somewhat.). But WHY do we bring this point up? Very simply because of this fact: IF YOU ARE PURCHASING A HOME, THE HOME SELLER IS PAYING A STANDARD COMMISSION OF 6%, OF WHICH HALF (3%) GOES TO THE SELLER’S AGENT/BROKER, AND THE OTHER HALF GOES TO YOUR AGENT/BROKER. The real estate commission is money that the home seller will be paying out NO MATTER WHAT — the question, however, is TO WHOM that money will be paid. IF YOU DO NOT GET A REBATE FROM YOUR AGENT/BROKER, YOU HAVE JUST LEFT MONEY ON THE TABLE — OR, MORE ACCURATELY, YOU HAVE GIVEN THE MONEY TO YOUR AGENT/BROKER. In other words, it of course COSTS you no commissions when you are buying a home using your standard 6% commisison agent/broker, but if you take things just one step further, and instead use a DISCOUNT BROKER who gives a HOME BUYERS REBATE, YOU could actually be GETTING MONEY BACK from the transaction, in the form of a home buyer rebate — in fact, up to 2% of the purchase price of the home, if you use a Baron & Chestney Real Estate discount broker. THIS FACT IS ENTIRELY LOST ON THE OVERWHELMING MAJORITY OF HOME BUYERS!!! If you could walk away from the transaction with the SAME service PLUS 2% of the purchase price of the home, WHY on earth would you NOT do so?! The ONLY good answer to this question is that you were UNAWARE that a Baron & Chestney Real Estate discount realtor will get you a home buyer rebate — and that is exactly what happens to most buyers! Don’t let this happen to you! Call US first, instead!
6. The Sellers’ property was beautifully maintained and in excellent condition. At Baron & Chestney Real Estate, we prefer to list homes for sale that are in very good or better condition. We want all Baron & Chestney Real Estate properties to show very well, because we firmly believe that nice properties almost sell themselves!
7. Miss Agent is always prompt and professional, she is very knowledgeable, she always keeps her client (the Sellers) and her broker (Mr. Broker) advised as to the progress of the real estate transaction, and she can always be reached by phone — imagine that! That alone makes her better than 99% of the agents in the real estate industry right off the bat. At Baron & Chestney Real Estate, we feel that there is no point in any real estate professional having a direct line, two cell phones, a fax, a pda, multiple email accounts, a pager, voice mail, a desk phone, a home office phone, a main office phone, and two assistants, if despite ALL of these gadgets they simply CANNOT BE REACHED when you need them!!! After all, THAT should be the main point! The overwhelming majority of the real estate agents and brokers that we encounter from other real estate firms are quite difficult to reach, and the overwhelming majority of all of those different phone numbers all converge into one place — “voice mail hell”! And, NO — they are NOT “too busy” — they are simply too busy for YOU, their client.
8. This was a highly simplified real estate example, in which everything that could have gone wrong in a real estate transaction instead went right. If you let one of our Baron & Chestney Real Estate discount realtors handle your real estate needs, we will always strive to do our best to produce the most positive results possible for you, even given real world scenarios. IN THE REAL WORLD, THERE ARE MANY HURDLES TO OVERCOME IN COMPLETING ANY REAL ESTATE TRANSACTION. Our Baron & Chestney discount real estate brokers pride themselves on finding creative solutions to whatever problems may arise! Creative solutions and dedicated real estate professionals with years of knowledge and experience help to get real estate transactions done where they would otherwise fall apart. Our Baron & Chestney Real Estate discount realtors will never let you down!
9. NOTE: Let’s say that the BUYERS saw the for sale sign on the home, instead of Mr. Buyersbroker. Could they have called Miss Agent and made a deal directly through her and Mr. Broker? Absolutely. In that case, Mr. Broker/Miss Agent would receive the FULL 6% realtor commission! However, all parties must be advised that the broker is representing both parties (full disclosure must be made). WHILE WE SEE NO PROBLEMS WITH ONE REAL ESTATE FIRM REPRESENTING BOTH PARTIES IN A TRANSACTION WITH CONSENT OF BOTH PARTIES AND FULL DISCLOSURE TO BOTH PARTIES, WE CERTAINLY DO TAKE ISSUE WITH YOU HAVING TO PAY a 6% real estate commission — MUCH LESS ALL TO ONE REAL ESTATE BROKER! If we represent both sides of a realty transaction, we only make a 2% realtor commission on the entire deal. The “realty commission savings” of 4% is passed on to the home seller and the home buyer, in essence.
10. In our example, the sellers were fortunate enough to be able to sell their home and move into their retirement home very smoothly. Very often in the real estate industry, a home sale or home purchase is contingent upon the parties being able to locate a new home. Or, for example, there is a tax exchange situation involved, or the home owner wishes to use the equity in his home to help his daughter purchase a new home. As the real estate scenarios that you encounter become more and more complex, you can rest assured that at Baron & Chestney Real Estate, our full service discount brokers can handle a wide range of complex situations. If there is something that we cannot legally handle ourselves (for example, real estate law, or real estate taxes), we have connections to those licensed experts who CAN handle it, and we will put our clients in touch with them.
What you have just read will help you to begin to understand how and why Baron & Chestney Real Estate will SAVE YOU MONEY IN ANY REAL ESTATE SALE OR PURCHASE, anywhere in the San Francisco Bay Area, as you explore our next section.
Baron & Chestney Real Estate offers FULL SERVICE discount real estate brokers who will sell your San Francisco Bay Area home for a discount realtor commission of only 2% to 4% in TOTAL. Home buyers who purchase a home using our home buyer rebate program will get a realtor rebate of up to 2% of the selling price of the home. Serving your discount real estate needs throughout 10 San Francisco Bay Area counties, our discount realtors will save you THOUSANDS of dollars in real estate commissions, whether you are selling a home or buying a home, or BOTH! Call a Baron & Chestney Real Estate discount real estate broker today, and let our home seller discount real estate commissions and home buyer discount realtor rebates save you thousands of dollars in realtor commissions on your next bay area realty transaction! Call US first!