This week I found out that someone I met with in Dacula last year is about to be in foreclosure.
At the time of the meeting the homeowner was being transferred and wanted to lease the property. I offered to help find a tenant, screen them and handle the move in/move out. They declined because they didn't want to pay the fees associated with my services. The fee is one month's rent which in this case was $1200. This is paid by the tenant at the time they sign the lease along with one month's deposit. (So essentially the homeowner pays the mortgage the first month the tenant occupies the house, this way the homeowner doesn't have to come up with the commission)
They finally found a tenant that broke the lease before the end of the term. The next tenant was evicted three months later and the property has been vacant ever since.
Let's break this down and see if they saved any money by not hiring a Realtor......
- Paid attorney and court fees to evict tenant....$200
- Cleanup of house....$250 (twice)
- Time and travel from out of state.....$500 (twice)
- Carrying costs (utilities and maintenance) monthly for vacant house (insurance is much higher) $200
So deciding to do this themselves actually cost them more than it would have cost to pay a Realtor to do it for them. Not only that, they've been paying the mortgage payment plus rent where they're living out of state because the house has been sitting empty for several months.
Now I hear the house is being foreclosed on in December which is sad because I've offered short sale assistance as well. This was a slam dunk short sale hardship but for some reason they wouldn't accept my offer to help. Short sales cost the homeowner nothing out of pocket and will save you about 6 years of headache on your credit report. The commission is paid from the bank's net proceeds, not from the homeowner.
Realtors have to eat too!
If you know any Realtors, you know that we like to eat. Have you ever been to an open house without food? Probably not. Just like every profession, we have to get paid and most people don't realize that Realtors are paid commission only! We are all self employed and working for you for free until we close the deal.
So I have just as much to lose as you, the client, if I don't get the deal done. Honestly I get as much or more satisfaction helping someone avoid foreclosure or just selling their home as I do getting paid. It's important to me but not my motivation. So if you know someone in a similar situation or maybe it's you, please CALL ME before it's too late. I'll be honest and advise your best solution even if it's not working with me!
www.SteveSellsGwinnett.com Steve Rider, CDPE Realtor with Keller Williams Lanier Partners in Braselton Georgia. Covering Barrow, Jackson, Gwinnett and Hall Counties in Northeast Georgia. If you're looking for real estate in Gwinnett County please contact me at 404 663 7063 or steverider1@gmail.com.
