A reduction in fees would be meaningless if your home did not achieve its maximum value on the market. The good news for CataList Home's clients is they not only save thousands of dollars in fees, but yield higher prices and almost identical marketing times than other homes sold in the market. Data from hundreds of CataList sales in Los Angeles and Orange County prove that we achieve the highest sold price to listing price

GREATER SOUTH BAY MULTIPLE LISTINGS SERVICE
(Year 2004 Greater South Bay 6594 Transactions Reported)

The truth is, it does not cost any real estate agent more than 3% to sell a home. Fees in excess of 3% represent an excessive charge to the home seller for the use of a real estate agent involved in an old, inefficient and costly system. Instead, you should be asking: "How can Realtors continue to charge five and six percent commissions (typically eliminating 20-25% of homeowner equity) when the average home is sold in less than 30 days?" When you consider the fact that home prices have virtually doubled in the last five years, how can Realtors keep the commission percentage the same and essentially double their fee? Your conventional agent is asking you for a 100% pay raise in 5 years, and he wants you to pay for it.

A 3% commission in 2006 is the same dollar cost as 6% just five years ago when you factor in home appreciation. This is how we offer all the essential service for 3%.

Ask yourself this question: Why have fees for stock brokers, travel agents and mortgage brokers been reduced, while real estate agents are still charging inflated commissions?

When it comes to getting top dollar for your home, look no further than the marketing plan of your agent. Full exposure of your home to the buyers in your market creates competition for your home, resulting in the achievement of the highest possible price. Conventional real estate firms use independent contractor agents who must (in most cases) pay for and create the real estate advertising. They are economically incented to provide the bare minimum. CataList Homes uses employee based (salaried and bonused) home marketing specialists with the support of a dedicated in-house graphic design studio and professional architectural photographers to implement the marketing plan at the company's expense. Here is the difference:

Paying 3% today costs you the same dollar amount as a 6% fee in 1999 due to home values doubling. That is why there is no catch. CataList charges nothing up front and no extra fees. You only pay when we successfully sell your house. If we can’t sell your home you pay nothing

You would not pay a 10%-12% commission to sell your home in 1999, so why would you pay 5% or 6% today. Extra commission paid to your agent will not achieve a higher price or faster sale. Remember, 6%=3% service+3% fat.

Yes, CataList Homes is an active member of all six Multiple Listing Service covering our service areas in Los Angeles and Orange County. We also split all of our commissions evenly (1.5% to CataList Homes - 1.5% to cooperating buyer agent) as fair compensation for their efforts and encourage their participation.

We hate to answer a question with a question, but what do the following real estate companies have in common?:

The answer: Each firm sold property offering 2% or less to the buyer agent on the MLS in the last 24 months (according to data from the SoCalMLS and Greater South Bay MLS).

Los Angeles

Orange County

Some agents competing with CataList Homes for your business utilize scare tactics to convince you that buyer agents will not show your home if you don’t pay a 2.5% or 3% commission to the buyer agent. Looking at the list of firms above, everyone is doing it. Isn’t this argument solely designed to get you to pay their firm more money? Ask your agent how the firms on this list were able to sell the homes with lower commissions? Also ask them how CataList Homes percentage of transactions with cooperating buyer agents is 90%; the highest of any major brokerage firm in Southern California. The fact of the mater is that thousands of homes are successfully sold paying buyer agents 2 percent or less in our markets.

When it comes to steering buyers, the vast majority of agents are honest good people. They know that arranging showings by amount of commission earned is a violation of the Code of Ethics of the National Association of Realtors and immoral behavior at best. Most agents are representing family, friends, or repeat/referral customers. With such customers there is really no personal incentive to steer their buyer to the highest commission because the agent really cares about their client. These buyer agents also know that buyers are out actively searching for homes and don’t care if their agent earns more commission. Like every business, a small minority of agents probably do show homes in order of commissions paid. But honestly, missing two or three possible buyers out of a hundred won't stop us from successfully marketing your home. If you desire to offer more commission to a buyer agent we still want your business, and you are welcome to offer the buyer agent the commission you chose.

Don't be fooled by self-serving fear tactics and get the facts for yourself

No. The pressure to pay higher fees to buyer agents benefits the real estate community, not homeowners. In fact, paying excessive fees to a buyer agent sets the tone that the homeowner is in a weak negotiating position because they are offering more than normal. Accurately priced and heavily marketed homes don’t need to offer excessive fees.

In both Orange County and Los Angeles (South Bay) Multiple Listing Service in 2004, sellers offering 1.5% to a buyer agent obtain better results than those paying a higher commission to the buyer agent. Here are the results:

In conclusion, commissions to Realtors do not increase the price achieved or speed in which your property sells. It is the properties condition, price, and exposure, which determine value, not the commission.

CataList Homes understands that some people are still skeptical about the ability to receive excellent service at commission rates of 3%. CataList Homes will provide you with a written service guarantee that allows you to terminate the listing agreement if we do not perform the functions stated in our listing presentation (subject to terms of the agreement). We don’t expect any home owner to take our word for it. Please view the many strong company testimonials. Click here to see what our clients are saying!

The answer is very little. Below you will find listed the major items that influence your home sale and who controls the item:

CataList Homes is simply a home marketing company. All we do is market homes for sale. Open up your local newspaper or visit Realtor.com and experience the major difference in the level of exposure CataList Homes provides. This is also why we choose to market homes, not our agent's photograph. In addition, all marketing costs are incurred by CataList Homes, not our agents, to ensure proper funding for the marketing plan. Most companies force their agents to personally pay for home marketing costs which can result in a desire to reduce the resources expended (not in the client's best interest).

In summary, each party has an influence over the ultimate sales price received. When choosing an agent, pick the one that will professionally promote your home. This is really the only major area where a Realtor will help you achieve the highest price.

Most real estate agents have a good street sense of the market demand and can look at competing homes for sale and recent transactions to give you a very good ballpark range of where your home will sell. CataList Homes (and most real estate companies) will prepare "Comparative Market Analysis" reports to prospective clients at no charge or obligation. Click here to request CMA

Unfortunately, some agents routinely employ two potentially harmful tactics in order to get your business.

It is wise for sellers to speak with several agents about the value of their home, but do not choose the agent that gives you the highest value automatically. Pick the agent that will best represent your interests, and discuss the different valuations with that agent. Most agents will agree to market a home at a higher price with the understanding that it will be reduced if the demand does not exist. Using this strategy, you are assured to achieve the highest price, and you do not reward agents who act unethically by purposely recommending unrealistic pricing.

Since home prices have skyrocketed, this remains a disturbing question. The answer is twofold:

The true cost of the commission is typically 30%-60% of the homeowner's original down payment. For example, if you purchased a $500,000 home and put down 10%, your initial down payment was $50,000. The commission to sell your home, at 6%, would cost $30,000. This fee equals 60% of your initial home equity.

CATALIST HOMES HAS TOTALLY RE-INVENTED THE REAL ESTATE BROKERAGE INDUSTRY WITH A BRAND NEW, MORE EFFICIENT BUSINESS MODEL THAT DRASTICALLY REDUCES THE COST TO SELL YOUR HOME.

CALL TODAY FOR AN APPOINTMENT AND FIND OUT MORE. 888-CATALIST (228-2547)

In response to many of our customer’s wishing to have the same professional and ethical service on the home buying side, we have introduced dedicated Home Buyer Specialists to some select offices in the CataList network to assist our clients with the home buying process. Just like our dedicated home selling agents, our buyer agents will only work with home buyers to provide the same level of specialization and competence on the buying side. In addition, our home buyer clients can earn a rebate of 20% of the commission earned as your buyer agent at close of escrow. On a $1,000,000 home the rebate would most likely be $5,000 which you could use for new furniture or closing costs.

Yes. CataList Homes has partnered with some of the hottest interior design firms in Los Angeles and Orange County to transform your home with proven design techniques to get the home in the best position for sale and achieve the highest price possible. Staging is the enhancement of a home through elements of interior design, including, but not limited to, addition of fine furnishings, artwork, rugs, linens and towels, plants, vases, flowers, candles and often times, outdoor furniture for pool and lanai areas. Painting and new floor coverings are also recommended for 30% of the homes to add sizzle and punch to the home. Staging ranges from a $500 evaluation by the design firm for the do it yourselfer, to the complete furnishing of your home during the marketing period.

For dramatic before and after pictures and more on staging click here.