Dan Desmond, certified real estate broker and owner of Help-U-Sell Bay Beach Realty is advocating for set-fee real estate commissions in the state of New Jersey. He claims American sellers of real estate are losing 5 billion dollars per year in unnecessary real estate fees and commissions, but his pleas to change government legislature have thus-far gone unanswered.
Dan Desmond, a 28 year veteran of the real estate industry is on a mission to help save real estate sellers billions of dollars per year in unnecessary real estate commissions and fees starting in New Jersey where the annual loss is about $100,000,000. “The problem I see is the huge disparity between services rendered and commissions charged,” explains Desmond. “Under the current percentage commission system at any given rate (95% are either 5 or 6%) a $500,000 seller pays double that of a $250,000 seller with no additional services. Of course the percentages hold true from $100,000 to $200,000, etc.” Desmond compares this situation to a much simpler one that most Americans can relate to, “Take a Chevy and a BMW to be washed and you pay the same price since the value of the car has nothing to do with the cost of washing it.”
In his example, the consumer is also fully aware of all costs prior to the transaction. According to Mr. Desmond this is another aspect of the problem that needs addressing. He feels that there are a number of questions that are not answered clearly in most real estate transactions. “Consumers should know what they will be paying for before signing,” states Desmond. “How much is going to administration versus commissions, how much is being spent on recruiting and training – and the chances of those people actually participating in the sale. How many people will be involved including agents, team leaders, managers, trainers and brokers. Will I be paying for recruiting bonuses?”
Desmond’s simple question is, “Would the seller agree to any or all of the above if they knew the answers beforehand?” Though the situation may seem to be complicated, Desmond insists that the solution is not. He explains, “The solution is a disclosure such as we see in auto repair and medical procedures before signing.”
Unfortunately, getting that solution in-place is proving more challenging that one might expect. Over the last 6 months Desmond has written certified letters to the New Jersey Legislature, Real Estate Commission as well as his local Senator. In each case he is asking that a pre-listing disclosure itemizing all costs be approved by a seller prior to committing to a listing. He has yet to receive a single response.
For more information about Dan Desmond or his set-fee real estate company Help-U-Sell Bay Beach Realty please call his office at 609-242-0506 or visit his site at http://www.helpUsell.com.