Frequently Asked Questions

Why use Home Sense?

Imagine a home seller paying a listing agent 1% of sale price to be his/her agent.  And imagine the seller not paying the standard 3% commission for a buyer agent.  That’s Home Sense in a nutshell.  Essentially, the seller pays only 1% commission (minimum $4,000) to sell a home, NOT the standard 6%.  The result… the seller saves $25,000 on a $500,000 home sale.  Yes, $25,000!

 

Home Sense attracts both represented and unrepresented buyers to your home.  If a buyer is represented, that agent is compensated directly by the buyer, NOT the seller.  This saves the seller at least 2.5-3% in agent fees.  If a buyer is not represented, Home Sense will charge an extra 1% commission to assist the buyer in coming to terms with the seller and fulfilling his obligation to the agreed upon purchase and sale agreement.

 

As the seller, you…

  • Are free to market your home on any FSBO websites.
  • Schedule showings.
  • Never pay buyer agent representation.

 

And Home Sense does the rest…

  • Provide the seller with a market analysis to help price the home.
  • List the home on the local MLS, reaching the most home buyers possible.
  • Mitigate legal liability and hurdles by documenting all aspects of the transaction on approved TN Association of Realtors® forms.
  • Ensure an experienced Realtor® is walking the transaction to closing and addresses any issues that arise during the transaction.
  • Ensure both the seller and buyer obligations of the purchase/sale contract are being met.

 

The result?  The seller saves 4% on commissions ($20,000 on a $500,000 home sale) compared to traditional home sales while retaining the important features of hiring a Realtor®.

A 1% total commission? Is that legal? I thought it was supposed to be 6%.

Since the seller has essentially completed the “heavy lifting” during the home sale process by conducting the showings and negotiations, that leaves fewer efforts required for the agent.  To be honest, most real estate agents spend lots of time interacting with lots of people to get a listing.  And once they do get a listing, they may conduct multiple showings and open houses and spend money on professional photography and marketing efforts.  But if we remove all the heavy lifting, honestly the agent should reduce his fee.  That’s where Home Sense comes in!

 

The 2% is absolutely legal.  According to federal and state laws, all real estate commissions are negotiable from company to company, even though most include the familiar 6% due to tradition and requirement to split the commission between the buyer and seller agents, instead of a single transaction broker like Home Sense.

Are there any upfront fees or other costs?

Absolutely not.  Nothing is due upfront and the only fees the seller pay is either the 1% commission if the buyer is represented by an agent or 2% commission if the buyer is not represented with an agent.  That’s it.

What area does Home Sense cover?

Currently Home Sense offers its service in the Middle Tennessee area.

What if I don’t use Home Sense to sell my home?

Both the seller and buyer are exposed to risks when buying a home.  But when a buyer and seller use a agent, the entire transaction follows a certain industry format recognizable by closing attorneys, lending institutions, buyers and sellers, home inspectors, home improvement companies, title companies, and other involved parties.  This is a format that has been tried and true for decades, including 40,000+ transactions per year.  When this format is altered, at least one party incurs more risk.  Many times, that one party is the seller and/or buyer.

 

Can your transaction handle the following issues?

  • Who holds the earnest money?
  • When does the inspection(s) happen?
  • What happens if the closing date is missed?
  • Must I advertise the property as “as-is” if I won’t conduct any repairs?
  • Am I entitled to the earnest money if the buyer defaults on the contract?
  • Is a home inspection required and who pays for any repairs?
  • What if the home doesn’t appraise for the purchase price or buyer financing falls through?
  • Can I take the kitchen appliances, or must they be sold with the house?
  • What disclosures are required by law and what if I missed one?
  • Do I have to disclose latent defects of the property?
  • If I miss a disclosure, what’s the statute of limitations for which the buyer may request damages?
  • What if I need temporary housing? Can the buyer rent back the home to me after closing for a few days until I close on my next home?
  • Is title insurance required and if so, who pays for it?
  • Can I ask the buyer to pay the closing costs?

 

For a $500,000+ home sale, is it really worth not being able to adequately address these situations?