Frequently Asked Questions

 

Are you a “discount” broker?

 

Yes and no. Yes, in the sense that we charge less than just about anyone else. No, in the sense that there is no sacrifice in the quality or range of our services. Starting from a customized marketing plan to expert negotiating to diligent oversight, there is no other real estate company that will do a better job of selling your house than Ravenswood. The fact that we will also save you thousands of dollars in commissions compared to our competitors is simply a bonus!

 

Why do you charge less than everyone else?

 

Charging a lower brokerage fee is one of the ways we choose to distinguish ourselves from the many other realtors working in the area. The price of homes in this area has risen so dramatically in the last 10 years that even with our lower fee structure, we are able to provide unparalleled service and the utmost commitment to our clients. In addition, our overhead expenses are quite low compared to larger corporate real estate offices, and we are happy to pass on this savings to our clients.

How do you split the commission with the buyer’s agent?

 

We offer a 2.7% commission to the buyer’s agent, and keep just 1.3% on our side. This is the same commission offered by brokers that charge 6-7%. We offer buyers' agents most of the commission in recognition of the time it takes to help buyers find the right property to purchase and because a pre-approved buyer is valuable to our sellers.

Won’t buyer’s agents boycott your listings?

 

No. What few sellers know is that over 98% of all homes listed offer commissions of 2.7% to the buyer’s agent. Our listings have been sold by almost every real estate company in the area and we have a long history of excellent relationships with our colleagues. Furthermore, it’s not likely that there will be another house just like yours (same price, size, condition, location, etc) on the market at the same time as yours.

How do other agent’s view your brokerage?

 

When Ravenswood first opened its doors in November 2001, we know that other agents were not happy about having a competitor who called into question the traditional commission structure. But Ravenswood is not a huge company and over time agents and brokers have come to realize that we are not a threat to their business. Moreover, we are known and respected as hard working and highly competent professionals who can be counted on to do our jobs well. We value the relationships we have with our Realtor colleagues who work for other brokerages.

What exactly is full service?

 

This is the traditional model of residential real estate brokerage practice. The seller signs an exclusive listing agreement and agrees to pay the agreed commission in exchange for all the services provided by the broker. The commission is contingent on a sale actually coming to fruition. Ravenswood Realty offers full service. (See Full Service described in more detail). The only difference between our full service and that of our competitors is the fact that we charge  thousands of dollars less.

Is Ravenswood Realty part of a larger corporate entity, or a franchise?

 

No. We are fully and proudly independent. We are locally owned and operated, and do not have to answer to, or contribute to the coffers of, any corporate conglomerate. This affords us great flexibility and creativity to meet the needs of a more varied client base.

Do you also represent buyers?

 

Yes. Many of our sellers were once buyer clients, and of course, some sellers also want to buy again. We have a unique service-set for our buyer clients, which is described in the Buyers Section of our website.

Do you use the Internet to help sell my home?

 

Yes, extensively. In the first case, the formerly proprietary Multiple Listing Service (mls) has its database of all active listings open for view through a variety of search engines (yahoo, realtor.com, homeseekers.com, etc) and on ravenswoodrealty.com. On ravenswoodrealty.com, Buyers can search both locally and nationally, and we have a system where a buyer can receive automatic e-mail updates whenever a new listing comes up that matches their customized search criteria. We use e-mail to stay in frequent touch will all clients and prospects.

Can you help me fix up my house before it goes on the market?

 

We have a lot of first hand construction experience, and have supervised many projects for sellers who are getting homes ready for sale. We know many reliable and reasonably priced trades’ people and will make referrals as needed. But just as important as knowing how to get things done is knowing what is best to do. We often find that sellers were about to spend a lot of time and money on projects that would not have paid off in a sale. Talk to us first!

Do you stage your listings?

 

Because the presentation of a house is key in generating interest, and of course, the highest price, homes often benefit from staging and we work with excellent consultants in this area. In many cases, however, simply removing some clutter and rearranging some furniture (with my help) can do the trick. Just as with home improvements, the thousands of dollars one can spend on staging must ultimately be reflected in a higher sales price, so we judge the need for staging servicies on a case-by-case basis.

Do you specialize in certain neighborhoods?

 

Our office is located in Burnsville but our independent agents live and work all over the Twin Cities metro area and in Western Wisconsin.  Ravenswood agents have represented both buyers and sellers in virtually every city in the Twin Cities metro area.

If your business model is so beneficial to clients and you alike, why aren’t other brokers doing it?

 

Traditional real estate brokerage is very entrenched, and very conservative. It is also very slow moving. But the Internet has really shaken things up, and changes are starting to appear. Large national chains are even starting to tinker with the traditional model (Coldwell Banker is test marketing a limited “fee-for-service” program in one city), and there have been several Internet start-ups taking a stab at discount brokerage. We expect that the rate of change within the industry will increase, bringing new choices to consumers. But whereas the traditional industry is seeking to “jump on the bandwagon,” while still seeking to protect their high commissions, Ravenswood Realty is proud of its small role in providing an alternative model to consumers and clients.

 

So why do so many people still list with 6% or 7% charging agents?

 

Ah, the most perplexing question for us, but one which probably has several answers. First, many sellers don’t realize that commissions are not fixed.  By state law they are negotiable.  The big real estate companies spend a lot of effort training their agents to focus on the service-side of their pitch and not on their fees. To support their rigid pricing structure, many agents will argue that “if you pay less, you will get less.” It’s all a smokescreen, of course. There is no shortage of unhappy sellers who paid 6%. Loyalty is another reason, as sellers will often return to the agents who helped them buy their house initially, even though Ravenswood can save them thousands of dollars on their next transaction.

Ravenswood Realty - John Upton - 500 Hemlock Drive - Burnsville, MN 55337 Phone: (952) 808-7878   Email: johnupton@ravenswoodrealty.com Copyright © 2010 RAVENSWOOD REALTY, All Rights Reserved.

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