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Cranbury NJ Homes For Sale http://www.cranbury-homes-nj.com Cranbury Real Estate, Katherine Pease, Cranbury, NJ Realtor Tue, 17 Feb 2015 22:22:47 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 How Real Estate Agents Get Paid http://www.cranbury-homes-nj.com/2015/02/how-real-estate-agents-get-paid/ http://www.cranbury-homes-nj.com/2015/02/how-real-estate-agents-get-paid/#comments Tue, 17 Feb 2015 22:22:47 +0000 http://www.cranbury-homes-nj.com/?p=519

How Real Estate Agents Get Paid

For my real estate friends who don’t quite know how to explain commission to their clients, here is my take on it. I have a bit of a background, having been a real estate agent for 25 years. Although people understood that I worked on commission, some still thought I got a paycheck or could get advances in tough times. Some thought that I got paid for every hour in the car or on the phone and got a bonus if something sold in my office.

Real estate agents do not typically make a salary. They receive a commission if one of these three things occur:
1. A buyer buys a house through the agent and it closes escrow.
2. A seller sells a house through the agent and it closes escrow.
3. A buyer or a seller uses an agent whom their agent referred. If this happens, their agent receives a referral fee (commonly 20-25% of the commission) from the agent who actually did the deal.

An agent does not receive monetary compensation for doing a market analysis, for showing property, for listing a property that does not sell (even if it is over-priced by the seller), for giving advice, for helping clients find a needed professional such as a contractor, for holding an open house, for taking “floor time”, or for any other service, except the three instances mentioned above.

Commissions are paid upon sale, from the proceeds of the sale. The seller agrees to the amount of the commission when they put the house on the market. The rate can vary, usually a percentage of the sales price. The most common commission rates are between 5% and 7% although they can be as high as 10% and as low as 1%. The seller’s agent offers a split of the commission to an agent who procures a buyer. Sometimes the split is equal, and sometimes one agent or the other receives a higher percentage. Agents also split commissions with their broker, the manager/owner of the office they work in.

Here is an example of a typical commission and how much ends up in the agent’s pocket:

Sales price $250,000. Commission 6%, split equally.

In this scenario $7500 would be given to the buyer’s representative and $7500 would be given to the seller’s representative. This starts with funds going to the broker’s office.

If the office is a franchise, a fee is taken from the top of the commission, a common amount is 8%. This would be $600.00, leaving a balance of $6900.00.

After the franchise, the broker/agent split occurs. A common split is 60/40 although top producing agents may receive 80% or more. Let’s use 70/30 for our example. The agent receives $4,830.

We are not done yet. From this amount, the agent is responsible for self-employment tax as well as income tax. Assuming a rate of 30% for both taxes combined, this amount would be $1449. The net to the agent, after taxes is $3381.

From this amount the agent pays all the costs of doing business (which may lower their taxes to some degree) and their living expenses. They fund their retirement account and pay their own medical insurance. Agents have numerous expenses. They write checks for licenses, dues and fees, for education and continuing education, for photographs, promotional materials, mailers, postage, advertising, desk fees, copies, forms (like contracts), insurances including errors and omissions as well as an upgrade on car insurance, gas (for showing property), a decent car (if possible), professional clothing, internet placement, glossy magazines, newspaper ads, flyers, signs and posts, gifts, client appreciation parties, snacks for open houses, keys and lockboxes, assistants and/or transaction coordinators, seminars, and more. Many agents end up paying for a host of other things to satisfy their clients such as staging, cleaning, snow removal, landscaping, and minor repairs.

Yes, a real estate agent can make good money. One big sale can change their life. Yet, they have a different salary from the executive with what appears to be the same salary. Real estate agents write checks before they get checks. They build relationships with everyone they meet, not just their “higher-ups” and their “subordinates”. They take calls at 4 am from a seller who can’t sleep because they are worried about their urgent need to move or a buyer who is scared because they have never spent this much money on anything in their life. They get to know people on such a personal level, helping them find a home, that they develop lifetime friendships. They get happy, slobbery kisses from the kids of their clients. They become a part of the families of each and every client they help. Real estate agents don’t do this job for the money and they sure don’t do it for the free time. Real estate agents do this job because they love helping people live the American Dream. Real estate agents do this job because they love you.

Thank you – Shahri Masters of Incline Living – inclineliving.com

 

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Princeton High School rated #2 in state for SAT scores http://www.cranbury-homes-nj.com/2015/02/princeton-high-school-rated-2-in-state-for-sat-scores/ http://www.cranbury-homes-nj.com/2015/02/princeton-high-school-rated-2-in-state-for-sat-scores/#comments Mon, 09 Feb 2015 14:43:02 +0000 http://www.cranbury-homes-nj.com/?p=516 The List: Ranking the Top 10 Open-Admission High Schools by SAT Scores
Colleen O’Dea | February 9, 2015
Recently released results from School Performance Tests help draw a bead on New Jersey’s top public high schools

2. Princeton High School — 1867 total SAT
This used to be considered a regional school, accepting students from both the borough and the township before they merged to form a single school district in 2013. Home of New Jersey’s Ivy League university, Princeton is both a well-educated and wealthy community. Eight of 10 students who took the SAT scored at least 1550. The school had 1,460 students last year.
Source: NJ Spotlight.com

Comment: Cranbury Township send it’s students to Princeton High School – which has been a terrific arrangement for Cranbury’s students.

If you’re curious, Millburn High School in Essex County was #1 with scores of 1897.

 

 

 

 

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4 Wynnewood Drive SOLD! http://www.cranbury-homes-nj.com/2015/01/4-wynnewood-drive-sold/ http://www.cranbury-homes-nj.com/2015/01/4-wynnewood-drive-sold/#comments Tue, 20 Jan 2015 21:15:30 +0000 http://www.cranbury-homes-nj.com/?p=511 4 Wynnewood Dr Sold photo  This is the 9th home sold or marketed by Katherine in this neighborhood! Obviously she has a following of buyers looking for homes in this lovely neighborhood.  If you’re considering selling and live on Wynnewood or Woodview Drs, she’s got buyers waiting for homes to become available!!

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Listed AND Sold by Katherine Pease! http://www.cranbury-homes-nj.com/2015/01/listed-and-sold-by-katherine-pease/ http://www.cranbury-homes-nj.com/2015/01/listed-and-sold-by-katherine-pease/#comments Tue, 20 Jan 2015 21:10:25 +0000 http://www.cranbury-homes-nj.com/?p=508 15 North Main St.,  Cranbury, NJ

Exterior 1

After several years on the market and several agents, Katherine worked her hardest to get this property sold! The new owners have opened Little Owl Enrichment, a wonderful program for toddlers through 8th grade! Be sure to check out their offerings at littleowlenrichment.com!

Both sellers and buyers are pleased with Katherine’s efforts to make this transaction happen!

]]> http://www.cranbury-homes-nj.com/2015/01/listed-and-sold-by-katherine-pease/feed/ 0 A positive outlook for the upcoming real estate market- http://www.cranbury-homes-nj.com/2015/01/a-positive-outlook-for-the-upcoming-real-estate-market/ http://www.cranbury-homes-nj.com/2015/01/a-positive-outlook-for-the-upcoming-real-estate-market/#comments Tue, 20 Jan 2015 00:44:59 +0000 http://www.cranbury-homes-nj.com/?p=505 Message received today from Jim Weichert:

I told you last week that I believe 2015 will be the best year for real estate in a while. I outlined the unique selling situation we are in, highlighted by interest rates still near their all-time lows, a better selection of inventory than we’ve had in a long time and buyer confidence at the highest level since 2007. On top of that, gas prices are very low, which helps consumers and the economy, plus we’ve had much less snow so far this year!

Here are some numbers which will help you see just how favorable current conditions are, compared to even just a few years ago: 

Now

2013

2010

Gas per gallon (NY area)

$1.99

$3.81

$2.73

Stock market (Dow Jones)

17,893

14,776

11,578

Avg. 30-year fixed rate

3.73%

4.43%

4.71%

Consumer confidence rating

92.6

76.2

   63.4

Household income

$53,891

$53,046

$49,276

Unemployment rate

5.67%

7.4%

9.3%

Foreclosures

1,117,426

1,369 ,405

2,871,891

 

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Welcome Cranbury’s newest residents! http://www.cranbury-homes-nj.com/2015/01/welcome-cranburys-newest-residents/ http://www.cranbury-homes-nj.com/2015/01/welcome-cranburys-newest-residents/#comments Sat, 17 Jan 2015 14:36:49 +0000 http://www.cranbury-homes-nj.com/?p=502 IMG_1516  Vito Ciancia and Gwendolyn Champion, and their 2 children Tyler 3 and Parker 7 months have just purchased 4 Wynnewood Dr. in Cranbury.  They have great plans to renovate the house and make it their own.  After seeing their previous home renovation,  I can say with certainty it’s going to be beautiful.!

Happy new home!!

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Beautiful Home in Shadow Oaks Neighborhood for Sale! http://www.cranbury-homes-nj.com/2014/10/beautiful-home-in-shadow-oaks-neighborhood-for-sale/ http://www.cranbury-homes-nj.com/2014/10/beautiful-home-in-shadow-oaks-neighborhood-for-sale/#comments Thu, 16 Oct 2014 21:44:39 +0000 http://www.cranbury-homes-nj.com/?p=496  8 Adams Drive

Cranbury, New Jersey

$865,000

  • Beautiful Updated Kitchen
  • 23×15 Sunroom overlooks private yard
  • 5th BR/Office with full bath
  • Master Bedroom w/ 2 full baths& 2 walk-in closets
  • 1 Acre lot on cul-de-sac

exteriorfront

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Great Article on Cranbury from The New York Times! http://www.cranbury-homes-nj.com/2014/03/great-article-on-cranbury-from-the-new-york-times/ http://www.cranbury-homes-nj.com/2014/03/great-article-on-cranbury-from-the-new-york-times/#comments Wed, 05 Mar 2014 20:39:02 +0000 http://www.cranbury-homes-nj.com/?p=481 What a great article about our lovely town! This is the first time Cranbury has bee featured in the NY Times in many years – please read and understand what a great place it is to live in!

Cranbury, N.J.: One Town, Many Personalities
 
 
 
 
 
 
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10 Low Cost Tweaks to Help Your House Sell http://www.cranbury-homes-nj.com/2014/02/10-low-cost-tweaks-to-help-your-house-sell/ http://www.cranbury-homes-nj.com/2014/02/10-low-cost-tweaks-to-help-your-house-sell/#comments Sun, 23 Feb 2014 21:22:44 +0000 http://www.cranbury-homes-nj.com/?p=478
Many homeowners won’t even consider listing their home, because they can’t afford extensive remodeling to get it ready for sale. But sometimes it’s not the major renovations that buyers notice. Consider this checklist of cheaper to-do’s before hanging that for-sale sign.

 

 

 

 

 

 

 

 

 

 

 

10. Finish with finishes. Bathroom gut jobs can be pricey, but replacing finishing elements such as faucets, showerheads, towel racks and toilet paper holders can significantly brighten a room. “If you have polished chrome faucets or shower valves, you can pick up any chrome accessories and they will match, unlike satin nickel or oil-rubbed bronze,” says Abel. New shower curtains, towels and mats also will help the room look updated and clean, she adds.

Estimated costs: Showerheads can cost $40 and up; bath towels start at $10; faucets are $70 and up.

Lurdes Abruscato – Houzz Contributor

 

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10 Low Cost Tweaks to Help Your Home Sell http://www.cranbury-homes-nj.com/2014/02/10-low-cost-tweaks-to-help-your-home-sell/ http://www.cranbury-homes-nj.com/2014/02/10-low-cost-tweaks-to-help-your-home-sell/#comments Sun, 23 Feb 2014 21:16:44 +0000 http://www.cranbury-homes-nj.com/?p=475 [houzz=http://www.houzz.com/ideabooks/23058396/list/10-Low-Cost-Tweaks-to-Help-Your-Home-Sell w=300]

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