No Commission Real Estate

Home sellers and home buyers knowledgeable enough about real estate to handle certain aspects of the transactions themselves prefer to use no commission real estate services. There's no reason to pay a broker to do something you can do yourself. And, with no commission, a seller or buyer in effect earns a pay back for their contribution to the successful conclusion of their transaction.
Today, most people are computer literate and able to search online real estate listings for their next home. Why pay a broker to do the same thing. Likewise with home sellers. Some people are perfectly comfortable staging and showing their homes themselves and do not contact a broker until presented with a purchase offer. When you select no commission, you contact a broker only when you really need one.
No commission is billed on a time accountable basis rather than as a percentage based commission paid in a lump sum at transaction's end. From the start, client and broker decide on the anticipated scope of work for a particular transaction and memorialize it in writing with a scope of work agreement. No additional work can be performed without prior approval.
No commission representation takes a team approach to your transaction. Your team is headed up by a licensed professional and staffed by experts in management and administration, inspection and other pertinent practice areas as appropriate. Each expertise level bills at its own hourly rate and for time actually spent. If you think about it, this approach is actually more efficient and cost effective for both client and broker. Clients like paying for specific services actually performed on their behalf, and brokers like the no risk aspect of no real estate. Under the commission based model, brokers always run the risk of losing if a transaction falls through at the last minute. Brokers are paid under no commission real estate regardless of the outcome of the transaction. No longer any money lost when a deal collapses!
Certain circumstances, such as cross country moves, may warrant full service. A local broker can prove invaluable in selecting the right neighborhood and the right home within that neighborhood and is certainly well versed in local real estate customs. However, in local moves, home buyers will know just as well as any broker which neighborhood is right for their needs and don't need anyone else to make the selection for them.

Arslan writes about no commission real estate. For more information on no commission real estate see http://www.smithadams.com.