What is ProOffer™?
How does it work for home buyers and home sellers?
What is PricePerform™?
What is TimePerform™?
What is PricePerform&trade "base commission"?
What is PricePerform&trade "incentive commission"?
What is PricePerform&trade "trigger price"?
Who sets the terms of PricePerform&trade?
Do I have to use PricePerform™ or TimePerform™?
What is "industry standard commissions?
What's the difference? Both PricePerform™ and industry standard commissions are based on selling prices.
Will my commission be higher or lower under PricePerform™?
If home buyers don't pay commissions, where does the money come from to motivate real estate agents for PricePerform™?
Does it cost anything??
Should I just pick the least expensive real estate agent proposal?
How is ProOffer&trade different than other sites that have profiles of real estate agents?
VIDEO: I need help creating a ProOffer™ proposal.
Does PricePerform for sellers resemble a "net listing?"
What is ProOffer™?
ProOffer™ connects home buyers and home sellers ready to hire with real estate agents. Real estate agents fight over you to win your business while you anonymously sit back and relax. In the process you will get really great proposals that save you money and time. Hire only the best.
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How does it work for home buyers and home sellers?
It's easy. Just fill in the form at Request Services and then sit back and relax. Real estate agents will look at your request and submit proposals to win your business while you remain anonymous. Contact only the ones you like.
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What is TimePerform™?
TimePerform™ allows sellers to link their real estate agents commission to selling a home quickly - above a minimum price. You can bundle TimePerform™ as a bonus on top of PricePerform™ (or a regular commission) or you can make it a stand-alone commission. Deciding whether to use TimePerform&trade as a bonus or a stand-alone commission comes down to how important 'time to close' is versus getting best price.
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What is PricePerform&trade?
PricePerform™ is a pay for performance commission model that substantially alters the financial incentives for real estate agents so that their pay is connected to getting best prices. This means the highest selling price for seller side real estate agents or the lowest buying prices for buy side real estate agents.
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What is PricePerform™ "base commission"?
PricePerform™ base commission is the commission that a real estate agent receives regardless of the buying or selling price a home. A real estate agents job has a lot of different aspects beyond getting best prices and/or a quick close and so the base commission is compensation for those other things your real estate agent does for you. For home sellers, there are usually some marketing expenses that your real estate agent incurs in promoting your home.
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What is PricePerform™ "incentive commission"?
PricePerform™ incentive commission is the part of the commission that is paid to your real estate agent for either getting the highest possible selling price or lowest possible buying price. You are basically paying your real estate agent based on their negotiation skills. Every dollar you make or save, you give a share to your real estate agent. It's good business because it makes sure that your agent is financially motivated to make or save you money. Not only do traditional commissions not do this, but they actaully create perverse financial incentives such that your real estate agent is financially motivate to work against you.
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What is PricePerform™ "trigger price"?
This applies to home sellers and is the sales price at which the incentive commission begins. For example, if you are selling a house for $300,000, the "trigger price" where your real estate agent might start to receive incentive commission might begin at $275,000. The idea is to give your real estate agent a specific selling price above which he or she must get to be paid any incentive based commission.
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Who sets the terms of PricePerform&trade?
Great question. In short, you do since you can ultimately dictate the terms you want to the real estate agent you want to hire. Under the most flexible option, real estate agents have to submit three different numbers to complete their PricePerform ™ proposal. They must submit a "PricePerform ™ base" commission, "PricePerform ™ incentive commission", and their "PricePerform ™ tigger price" (definitions within this FAQ, above). Another option for you is to explicitly set PricePerform&trade Base and PricePerform™ Incentive commissions and then allow the real estate agents to compete on the point from which they receive incentive commission (PricePerform™ trigger price). Because real estate agents are competing in an auction like system, the PricePerform™ trigger price and the overall level where PricePerform™ commissions are set will be fair - for both you and the real estate agent you hire.
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Do I have to use PricePerform™ or TimePerform™?
No. Absolutely not. Even if you request PricePerform™ or TimePerform&trade proposals, using them is optional. You can just select a real estate agent under industry standard commissions. We just want you to be happy. Choose any commission structure you want and let us know if you would like to see something new.
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What is "industry standard commissions?
It's just our way of describing how MOST real estate agents structure their commissions - which is usually a percentage of the homes buying or selling price. Remember, home buyers don't usually pay anything unless specifically agreed to upfront. Real estate agents of home buyers usually get 50% of the commission a seller is paying their real estate agent.
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What's the difference? Both PricePerform™ and industry standard commissions are based on selling prices.
The difference is huge. PricePerform™ links substantially more of the real estate agents pay to the INCREMENTAL selling price. Industry standard is based on TOTAL selling prices. The impact is that agents commissions are substantially linked to that last 5% or 10% of a homes price under PricePerform™ whereas under industry standard commissions this last 5% or 10% doesnt affect a selling agents commission substantially. Here is an example: if you are trying to sell your home for $500,000, PricePerform™ pays your real estate agent substantially less than usual to get any price below $500,000 and substantially more than usual to sell you home above $500,000. Industry standard pays the same across all prices such that, within a 5% price range, a real estate agents commission is 95% pre-determined. In our example, an agent would only make another $500 if he or she got you another $25,000 is selling price under industry standard. As such, agents are more likely to get a deal closed rather than risk losing a commission to earn another few hundred dollars. PricePerform™ changes this. See a home sellers example and a home buyers example
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Will my commission be higher or lower under PricePerform™?
This question applies to home sellers only. The answer: it depends on how the commission is structured versus the eventual selling price. If an agent takes a lower base commission in exchange for a higher incentive commission and does NOT sell your home above the "trigger price" (price above which the incentive fee begins) then you will pay your real estate agent less. If your real estate agent gets you a selling price substantially above the trigger price, then your commission may be more. But really its a win-win because in this scenario wher you may be paying more, you have also MADE MORE through a higher selling price. So in effect you only pay more money when receive more money. See a real example.
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If home buyers don't pay commissions, where does the money come from to motivate real estate agents for PricePerform™?
PricePerform™ for buyers is driven by real estate agents who have agreed to refund some of their commission money back to their client after buying a house. Although any real estate agent can refund money to buyers, two firms that make this a central part of their business model are Zip Realty and Redfin (in select cities).
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Does it cost anything?
It costs nothing for individual home buyers or home sellers. Real estate agents do pay us a fee. Homebuilders, banks and other real estate institutions should call us to work out a deal. info [at] my-currency {dot} com or 415-508-5800.
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Should I just pick the least expensive real estate agent proposal?
It really depends on your situation but for the most part you should hire the agent that gives you the best value for money - that is, cost of the agent versus your percieved financial benefit. In some instances, like selling a very unique property in a tough market, it may mean selecting the real estate agent who is more expensive than others because she or he has the best sales and negotiation skills - as demonstrated by other similarly complicated property sales. In other instances, like if you know the neighborhood you want to buy into and there are many similar homes for sale, you may want to choose a less expensive option. But even in this latter scenario, a good real estate agent may be able to negotiate you a discount to the list that would far outweigh the slightly higher commissions (you can use PricePerform&trade for buyers in this instance to hire the better negotiator in a win-win for both of you). Like lawyers, in some instances you need a professional that is the best (and therefore more expensive) and sometimes you just need someone to make sure you don't do something dumb.
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How is ProOffer&trade different than other sites that have profiles of real estate agents?
ProOffer&trade is very different in many important ways.
1) We save you money, time, and headaches. Our model is predicated upon real estate agents competing to win your business. Winning your business is a little different for everyone but it may be lower commissions, better commissions (PricePerform&trade), quicker closes (TimePerform™), higher service levels, or some combination of the above. We let you define your needs and then evaluate the various real estate agent proposals that get submitted to help you get the best fit. The other guys just sell your contact information to whoever pays them the most.
2) We keep you anonymous. Your identity is never revealed by us to the real estate agents competing to win your business.
3) You control who can submit proposals. You have the option to allow only the real estate agents you have handpicked to submit proposals or to allow any real estate agent to submit a proposal. Your options are not limited to the real estate agents we have in our database. You can invite ANYONE as long as you have their email address. We contact these outside real estate agents on your behalf, without revealing your identity, and invite them to view your proposal request and submit a proposal.
4) We are transparent. ProOffer shows you and the real estate agents competing for your business who is participating and, if there are 2 or more competing real estate agents, what the low and median value of the proposals being submitted. The intention is to give you differing pricing options in hiring a real estate agent while giving real estate agent participants enough information so that can decide how competitive to be. We do not reveal the specifics of any proposal to other - only the requesting client sees proposal details.
5) Pay only for performance. PricePerform™ and TimePerform™ are ground breaking innovations that financially align real estate clients and their agents . Clients that leverage our pay for performance commission models want real estate agents that deliver value in the form of best prices, fast closes, higher service, or some combination of all three. Click here to see PricePerform&trade for buyers and here to see PricePerform&trade for sellers.
6) Get market intelligence generated by people - not machines. We analyze the commission proposals that real estate agents submit to you to predict either a home's most likely selling price or general listing inflation in a zip code.
VIDEO: I need help creating a ProOffer proposal.
Is PricePerform for sellers a "net listing?"
We no not believe that PricePerform™ even comes close to resembling a "net listing" but you should check with your agents and/or brokers in your area. A "net listing", as defined by the California Department of Real Estate is "a listing which provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner". Notice that the the definition included the phrase all sums . PricePerform™ for sellers is about clients sharing a fraction of the sum above the "trigger price". That is the home seller keeps most of the benefit - NOT the real estate agent . Additionally, the ProOffer™ model includes a "base commission" and is predicated on marketplace competition for clients. This means the commission in general, and the trigger price in specific, is set through a market mechanism not unlike an auction.
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