Have you heard of a “bridge loan?” Many people have, but don’t know exactly what it does or how to get one. A bridge loan product is designed to help people “bridge” the equity from their current home to the next. Not all mortgage lenders offer residential bridge loans because of risk, and the fact they are not as profitable to the company. Speaking with Jay Richardson, who is a Senior Loan officer with MVB Mortgage in Fairfax, Virginia…he has said that not only do they offer bridge loans in the DC metro area, but they offer a host of other temporary loan options that have helped hundreds of clients prevent the “bad” timing issues that can come up when a client moves from one home to the next.
I was at a real estate event this past week and I had a conversation with a top producing agent. She told me she recently went on a listing appointment and the sellers had interviewed 4 agents. She was the last one in the door. She went on and explained that the sellers wanted her to lower her commission from 3% to 2.5% or even 2%. The previous 3 agents that presented before her ALL agreed to lower their commission. I asked her if this is happening more and more…sellers asking Realtors to lower their commission? She said that “Yes” she had seen it more and more over the last couple years. Why are sellers asking Realtors to lower their commission? I believe there are many factors in play. Let’s talk about those factors and how a real estate agent can best educate, and add value to sellers to earn that 3%.
I would say at least 3 -4 times a month I get this call or email from a Realtor: “Wade…we really want to use Stewart Title on this transaction, but this other Title Company says that if we go with them, they will give my buyer a free home warranty at closing. Can you guys do that?” That is when I have to drop the news, that the Title Company Home Warranty isn’t really free. Ever hear the phrase…”no such thing as a free lunch?” Think along those lines. You might be thinking that this doesn’t happen in your area of country, and you are probably right. It does happen in the Northern Virginia/Washington DC area…all the time. There are several things about this marketing tactic to “earn business” that needs to be explained. Not only to real estate agents, but also the buyers and sellers on the transaction. It affects them as well.