Frequently Asked Questions

Below, you will find answers to the most frequently asked questions we receive.

Q&A Relating to our Flat Fee MLS Listing Programs

Q&A Relating to our Flat Fee Full Service Listing Program

Q&A Relating to our Commission Rebate Program for Buyers

 

FAQ: Flat Fee MLS Listing Programs

 

What is the MLS?

MLS stands for the Multiple Listing Service. The MLS is a database of homes for sale in a certain area. The MLS is used by Real Estate Brokers to list homes for sale and find homes for their clients. Listing in the MLS is the best way to make Real Estate Brokers aware of your home as it is typically one of the only tools they use to locate properties for their clients. Only licensed Real Estate Agents have access to the MLS and only they can list property for sale in the MLS.

 

What Happens when a Broker wants to Show my Home?

Your name and phone number are placed in the "Agent Only Remarks" section of the MLS listing and brokers are instructed to contact you to schedule a showing. The broker wishing to schedule a showing simply calls you and to schedule an appointment. We recommend that you meet them to let them in, provide a flyer on the property, give a quick introduction to your property and then let them look around on their own. After they have finished viewing your property you can make yourself available for questions.

 

Why Should I Have my Home or Property Listed in the MLS?

Real Estate Brokers use the MLS almost exclusively to search for homes and property for their clients. Since more than 80% of buyers are represented by a Broker, we feel that having your home listed in the MLS is a tremendously important part of the marketing mix.

 

What Commission Do You Recommend Offering the Buyer's Agent?

While there is no standard commission, the majority of sellers in the offer the Buyer's Agent or Broker a 3% commission at closing.  When deciding how much to offer, remember that the higher the commission the more attention it will get from Buyer's Brokers. If you happen to find a buyer on your own, through Craig's List, newspaper advertisements, a yard sign or other means, you will not have to pay any commission increasing your savings even more.

 

At what Price Should I List My Home?

The price you decide to list your home for is entirely up to you. It's best to be realistic about the price you ask as a price that is too high will make your home more valuable. Since you will be saving so much in commissions you have the opportunity to be aggressive in your pricing and undercut the competition. You can also change your asking price at anytime. In your listing packet, we include a price change form that you can fax or e-mail to us as many times as you wish during your listing term.

 

How long does it take for my Listing to be added to the MLS and to show up on Realtor.com?

We will post your home to the MLS within one business day of receiving your paperwork and photos. Approximately 24-48 hours after your listing is visible in the MLS it will also be available on Realtor.com and other web sites.  Please remember that we have no control over the content that appears on sites that receive data feeds from the MLS so the time could be greater for some sites.

 

Can you use my Pictures for My Listing?

Yes, absolutely. Once you have paid for your listing package, simply e-mail your photos to Photos@Hardy-Co.com, please be sure to include your listing number in the e-mail. For best results we recommend that photos be taken that are:

• Light and Bright - turn on interior lights when taking your photos
• Free of Clutter - a clean home always shows better
• In Focus - make sure your photos are sharp

Photos must to conform to the following:

• Minimum of 800 pixels wide or tall - we will format your photos to the proper size upon receipt
• JPG or JPEG file type

If you decide that your photos are not strong enough to sell your home, we can shoot the photos for your for a fee or recommend a photographer to you.

 

How long is the Listing Agreement?

The listing term is 12 months for the Flat Fee MLS program, and there is an unlimited listing term on both our Flat Fee MLS + Closing Support and Flat Fee Full Service Listings. You are free to cancel your listing at any time, without charge or penalty, as long as the property is not under contract and/or there are no active negotiations.

 

Can I cancel my listing?

Yes, you can cancel your listing at any time without penalty.

 

Who Handles the Forms and Paperwork?

After we receive your listing order, we will e-mail you a listing packet that contains all the necessary listing forms and disclosures. You will then complete them and return them to us via e-mail, fax, or snail mail. Once we receive the paper work, we will review it and contact you if there is anything missing or completed incorrectly.

At the time you receive an offer, it is up to you and the buyer to complete counter offers and purchase agreements on forms you both agree to. If you decide you need additional assistance, we are here to help. When we step in, you will still find that we are still much less expensive than full service real estate brokerages. When you ask us to take an active role in the transaction, we will represent you and assist you with:

• negotiating offers
• handling contingencies
• handling all paperwork on approved Real Estate Association of New Mexico Forms
• seeing you through the closing process

The cost of this service depends on when you choose to signup:

• If you decide to have us represent you in all contract negotiations, from the beginning by selecting our Flat Fee MLS + Contract and Closing Support Package, you pay only $500 at the time of listing, and we will help you with as many offers as you receive.
• If you decide to have us represent you in contract negotiations, when you get an offer, you pay $500 when you receive your first offer and then $500 for each subsequent offer.

Of course, we will handle all of the paperwork under the Flat Fee Full Service Listing and Flat Fee MLS Listing + Contract and Closing Support.

 

What Type of Listings do you Accept?

Your Listing in the MLS can be for just about any type of property, Including:

• Residential Homes
• Land
• Commercial Buildings
• Multi-Family Properties
• Rentals (both commercial and residential)

 

What is a Lockbox and should I use One?

A Lockbox is a metal container that is typically attached to your front door or gate. Inside the lockbox, you place your keys. There are two types of lock boxes:

Electronic Lockbox - is a lockbox that only Real Estate Brokers can open using a key that electronically monitors access.

Manual Combination Lockbox - is a lockbox that you can purchase at any major home improvement center. The lockbox is opened using a combination.

The MLS Listing will advise Real Estate Brokers if a lockbox is in place and how to access the property using the lockbox for showings. The decision to use your lock box is entirely yours. We like lock boxes as they allow your home to be shown when you are at work or out of town, assuring full exposure to prospective buyers. In addition, most Real Estate Brokers choose the path of least resistance when deciding which homes to show. If you home does not have an electronic lock box many brokers will decide that showing your home is too much of a hastle. If you decide to use a lockbox it can be removed at anytime - please let us know if you remove it so we can update the MLS listing accordingly.

If you decide to use an electronic lockbox, we have them available for rent for the term of your listing. The charge to use one of our lock boxes is $150, with $50 of that amount refunded to when you return the lockbox to us. A lock box is included in our Full Service Flat Fee Listing.

 

If you have a Question that has not been Answered...

Please feel free to Contact Us at any time, we are happy to talk talk with you at any time prior to or during your listing term.

 

FAQ: Flat Fee Full Service Listing

 

What are my costs as a seller?

Regardless of the listing/sales price of your home or property, we only charge $3,000 + tax for full service representation. You will still pay a commission to the buyer's agent at a rate you decide - often 2%-4%. Outside the $3,000 listing fee there are no additional listing commissions or fees charged by Hardy & Co.

 

Do I pay the full $3,000 up front when I hire you to sell my house or property?

No, we require only a $1,500 + tax payment at the time of listing.  This fee is non-refundable.  The remaining $1,500 + tax is collected at closing.  If your property does not sell you are not responsible for paying the $1,5000 + tax that is typically due at closing.

 

I don’t have $1,500 to pay you at the time of listing.  Is there an alternative option?

Yes, you may elect to pay only $400 + tax at the time of listing (non-refundable).  At closing, we will collect an additional $4,000 + tax for a total fee of $4,400 + tax.

 

Who pays the buyer's agent if I hire you to sell my house?

You pay the buyer's agent a predetermined rate - often, between 2% and 4%.

 

How much do I have to pay the buyer's agent?

The commission that is paid to a buyer's agent is up to you - there is no set rate.  We recommend that you offer to pay a buyer’s agent between 2% and 4% if they bring you a buyer. If you locate the a buyer, then you do not pay anything above the flat fee due to Hardy & Co.

 

What do I get for $3,000?

We market your home where the majority of buyers are found: your local MLS, Realtor.com, Zillow.com, and 30+ other national real estate sites. We loan you a professional yard sign and electronic lockbox, and coordinate all the showings for you. Once an offer comes in, we take care of all the paperwork, contracts, negotiations, and will accompany you to closing. For a complete list of our services, click here.

 

Why should I list with your firm?

We feel that listing with us offers many advantages, including:

1. We offer virtually the same listing service that other firms offer, at a significantly reduced price.  There are two basic differences between what we offer and what others offer - we do not participate in print advertising or host open houses.  We feel that the internet advertising is much more effective in reaching buyers and that while open houses can work, the home owner can do it better than a agent who is using it as an opportunity to meet new clients.  If you, the homeowner, hold your house open your only goal is the sell and who knows your home better than you? 

2. You can save thousands and thousands of dollars.  Most people think of this savings as a boost to their bottom line at closing.  While it can be, it can also help you to sell your property faster than the competition.  The savings you realize through our Full Service Flat Fee Listing Program can allow you to be more competitive by using some or all of the following techniques:

- Price your home more aggressively than your competition - thereby attracting more buyers.

- Offer to pay more of the buyer’s closing costs - sweeting the deal for a prospect

-Offering buyers broker’s a higher commission - All things being equal, a broker will show homes that offer a higher compensation first.  

 

Won’t my home sell faster with a traditional broker on the job?

When most Realtors sit down with you to list your property, they show you a great presentation and tell you all about their wonderful "marketing plan". However, did you know the majority of properties (approximately 90%) are sold by a cooperating MLS agent, and NOT by the listing agent? If the marketing plan is so great, why doesn't the listing agent sell the listing? The sad answer is that most agents don't expect to sell the property themselves, they let the MLS, internet and buyer agents do the work. So with that in mind, why would you give your hard-earned equity away to someone with a sign and access to the MLS?

 

Shouldn’t I advertise my home in the newspaper and in home magazines?

From our experience, print ads simply do not work. You are more than welcome to place the ads yourself, but we feel that print advertising only serves one function.  Ask your self why a broker would pay $100s or even $1,000s a month just to place a property in a home buying magazine? The main reason is that they are hoping to generate buyer leads for themselves. In the past we spent a considerable sum for print advertising. How many homes did we sell as a direct result? None. Brokers, in general, run ads to get the phones to ring so they can assist other people who want to Buy or Sell. This is often why you will see homes advertised in the real estate magazines without the complete address - so you have to call the broker.

Brokers are trained to use marketing materials to promote themselves, their team or their company NOT to actually sell your home. If you think about it, when you pay a 5%, 6% or 7% commission you are the one who pays for a brokers marketing.

 

Will other brokers be able to show my home?

Yes, we'll provide you with an electronic lockbox which will allow other brokers the convenience of showing your home when you are not around. In addition, we field calls from brokers who want to show your home. We'll then call to let you know what time the broker will be there so you can leave for an hour or so. We have found that it is best if you are not there when buyers are touring your home with their broker.

 

Will my home be on the MLS?

Yes, absolutely! We have found that the MLS is one of - if not the best tool for selling your home as it is THE place brokers look for property for their clients.  We will also place your home on Realtor.com as a Showcase Listing, on Zillow.com and on over 30+ other sites.

 

What is a lockbox?

A lockbox allows you to securely lock one of your house keys in a box that is only accessible to brokers who who have a Real Estate Board issued electronic lock box key.  We feel that a lockbox is indispensable when selling a home as is allows you to have your home shown by a buyer's broker while you are not home. Only brokers who belong to the local real estate board can access the key that is inside the lockbox and an electronic record is kept logging all access to the property.

 

What if I “flip” houses for a living? Can I use your service if I'm in the construction/remodeling business?

Yes. By utilizing our Commission Rebate Program (in which we rebate up to 2% of the sales price to you) in conjunction with our Full Service Flat Fee Listing Program, you could lower your total real estate transaction costs drastically.

 

Can you help me get my property ready?

Yes. We love helping our clients get their home ready for sale.  We’ve found that a impartial “eye” is often indispensable when preparing your home for sale.

 

What if Hardy & Co. finds a buyer instead of another company, does that affect my cost?

No. You'll have to pay the buyer's broker fee regardless of who sells your property. It's most likely that an broker from another company will end up bringing you a buyer. But if we happen to bring one of our buyers to you, then you still must pay us the buyer's broker fee you offer.

 

Will you host open houses for my home?

One of the few things that we'll ask that you handle yourself is holding your house open. We'll give you some great advice (see below) on how to hold an open house, and we'll advertise it for you via the MLS. We think that you are the best person to answer questions from prospective buyers and you may just find a buyer on your own allowing you save even more money by not have to pay a buyer’s broker commission. 

 

How do I hold an open house?

It's easy:

1. Send us an e-mail or call us at least four days in advance of when you'll be holding your open house. We'll advertise it for you on Realtor.com, and many other web sites. We'll loan you three open house signs so people driving around can find your home. We recommend that you schedule your open house on a Saturday or Sunday from approximately 1-3. Then make sure your home is clean, all the lights are on, and the window coverings are open.  One of the “tricks of the trade” is to bake cookies or cinnamon rolls prior to your open house  - the scent will leave a lasting impression and you’ll have food available for your visitors.  We also recommend that you remove the flyers from the yard sign so prospective buyers must come inside to get information. Pick a central location such as the kitchen or dining room table and lay out the flyers that you removed from the yard sign, as well as any other documents or photos (if it's winter, try to have photos of what the outside of the home looks like during spring and summer). If you plan to follow up with your guests, have them sign in on a sheet of paper or guest book. Let them know you are the homeowner, and you'd be happy to answer any questions. Then, let them look around on their own. People will feel more comfortable if you don’t follow them around or try to sell them on your home. Just be there to answer questions and feel free to tell them what you think is great about your home, after all, you know best!

2. Drop flyers in your neighbor’s boxes and let your friends know that you'll be holding an open house and that they are welcome to stop by if they'd like. 

3. For your own safety, Never hold your house open alone.  Also, we also suggest that you move valuables, cash, prescription drugs, and jewelry to a safe storage area before your open house begins. Finally, keep your cell phone with you at all times.

 

Can Hardy & Co. hold an open house for me for an additional fee?

No, this is not a service that we offer.  We feel that you are the best person to hold an open house because you know the most about your home. Hold them every weekend if you like, just let us know four days in advance and we'll advertise it for you through the MLS and Realtor.com. 

 

Will you tell me the price you think I should list my home?

Each of our clients who signs up under our Full Service Flat Fee Listing Program, receives a professional pricing consultation. We will share with you all the recent sales and listings in your area and we will work together to make an informed decision. 

 

If my house or property doesn't sell. Do I get a refund?

No, we can not make a guarantee that your home or property will sell. If your home or property does not sell, the fee you paid at the time of listing is non-refundable. However, the fee that was to be paid at closing is waived. 

 

 

FAQ: Commission Rebate Program for Buyers

 

Are there Limitations to the Rebate Program?

There are some limitations to this program, but we have tried to keep them as simple as possible:

1. If you have signed a Buyer Broker Agreement with another real estate broker, we are unable to help you as you have entered into a contractual relationship with that broker. If you are able to able to terminate your agreement, we will be happy to assist you and provide you the rebate.

2. Our fee is always a minimum of $2,000. This means that for homes selling for less than $200,000 your rebate would be less than $4,000. As an example on a $100,000 property, our fee would be $2,000 and your rebate would be $1,000.

3. If the seller is offering less than 3%, your rebate may be less if our minimum fee of $2,000 is not attainable.

 

Do I have to disclose the rebate to my lender?

Yes, we always recommend that you notify your lender of the rebate early in the transaction. Lenders deal with rebates differently and we need to coordinate how to best account for the rebate at closing. We will work with you, your lender, and the escrow officer to coordinate the distribution of your rebate.

 

Is the rebate treated as taxable income?

The IRS stated in private letter ruling # 200721013 that rebates are not treated as taxable income, but rather a reduction to the price of the home. This is similar to how rebates on automobiles are treated. Since private letter rulings are only only for the benefit of the party who petitions the ruling, there still could be a question about the treatment of the rebate. So, we suggest that you check with your tax advisor.

 

Does the rebate appear on the HUD-1/Settlement statement?

Yes, we work with the escrow officer from the beginning of the transaction to make sure that your rebate is accounted for properly. The best way to ensure proper accounting is to have the rebate appear on the settlement statement. Having your rebate on the settlement statement provides full disclosure to the parties who need to know about the rebate, plus you get your rebate as soon as you close.

 

Will I get the same level of service as I would with a "traditional" broker?

Yes, absolutely! We offer you a rebate not because we reduce our service quality, but because we believe that you should be compensated for your involvement in the process. Once we become involved, you will receive the very same level of service you would from a traditional broker. We even go so far as to say you'll receive better service. Here is why:

• We concentrate on providing Professional Services to our clients not Chauffeur Services
• We are very tech savvy - this allows us to keep you fully involved in the transaction by delivering documents and information in the most efficient manner possible.
• We are creative problem solvers and have been involved in transactions from simple to complex.

 

How can I see a home without a Realtor?

There are a number of ways for you to see homes without having a Realtor take you around:

• Open House - Many homes are held open on the weekends. If you do not see the home you are interested in the open house schedule of the newspaper, let us know can we will call the listing broker to find out when the next open house is scheduled.
• Broker Tour - Broker tours are held every Wednesday in Santa Fe. A different area of town is featured each week. We are happy to provide you with a tour schedule and can let you know if the property you are interested in will be held open.
• Listing Agent - You are always welcome to call the listing agent to schedule a showing. After all, they have been hired by the seller to present the property for sale. It is important that you not sign a Buyer Broker Agreement with the Listing Agent, as this would preclude Hardy & Co. from representing you and ultimately paying you a rebate.
• If none of the above methods work out, we can open the home for you. Provided you have already seen the home from the outside and are comfortable with the neighborhood.

 

How will I Receive my Commission Rebate?

There are two different ways for you to receive your commission rebate from Hardy & Co.

• Credit at Closing - A credit at closing is the preferred method for most of our clients. This means that the rebate will show up on your closing statement as a credit, requiring you to bring less cash to close. However, lenders are becoming increasingly strict about how much of a rebate they allow buyers to receive during escrow. Depending on your specific loan program and size of your down payment, some lenders will not allow a rebate that exceeds the total closing costs (title insurance, fees, etc.). We work with your lender to allow the entire rebate credit during escrow. However, if your lender only allows a partial rebate during escrow, we will mail you a check for the remaining balance the day after closing.
• Check after Closing - If a lender lender refuses to allow a rebate credit during escrow we will mail or deliver a check the day after closing.
  

Either way, we will ensure you receive your full rebate.

Why do you do this? How do you make money offering rebates?

Times have changed. Today, most buyers prefer to do their own research by scouring the internet and attending open houses. Unlike traditional real estate brokers, we believe that you deserve to be rewarded with a commission rebate for doing this research. Furthermore, today’s technology enables you to perform the groundwork that was traditionally provided by a real estate broker. When we work deals rather than drive clients around, we can help our clients where we think it really matters:

Negotiating Contracts & Guiding You Through the Closing Process.

We remain profitable by eliminating the excess overhead associated with a traditional real estate brokerage and concentrate on getting paid for our professional services, not ancillary services that add little value to the buying process.

 

Where do you Offer your Commission Rebate Service?

We offer our Commission Rebate Program throughout the entire state of New Mexico.