Wednesday, April 6, 2011

Here's Your Sign, Delayed. Instead, more about how this works...

Knowing that the self-imposed schedule alternating homeless articles with real estate articles is soon to fall away, I'm still feeling obligated to continue the practice. The Real Estate article is due and "Here's Your Sign" was scheduled for today.  But that isn't what I'm feeling right now so look for that one another time.

You're familiar with the famous real estate mantra: Location, Location, Location.  It can apply to residential homes, office parks and retail shopping centers - just ask Starbucks!  But the truth is, the most important piece of real estate and apparently ...
"The most expensive piece of real estate is the six inches between your right and left ear."     Dolf de Roos.
Yes, I'd prefer to say "important" rather than "expensive".  Dolf de Roos goes on to say that we use this real estate to determine our wealth and that we are only limited by our minds.   I know he's talking about material wealth in our business decisions but it can be more than that.

We can interpret 'wealth' in terms of happiness.  I'm not saying that if you have a lot of money you'll be happy because we all know that isn't true.  There are plenty of unhappy millionaires.  I'm referring to a couple of other we've-all-heard-them-before "quotes". Paul Fleming says that,
"Happiness is the cheapest thing in the world when we buy it for someone else".

Helen Keller reminds us that
"True happiness ... is not attained through self-gratification, but through fidelity to a worthy purpose"

So let's use this "expensive/important" piece of real estate and create some happiness.  I'm shameful in asking, I know.  Responsible Referrals needs your input, help, interaction and support.  But unless we earn your trust, you won't be inclined to DO anything and we understand that.  The previous posting provided a chart to explain the process - the steps, if you will.  We need to go further and take this beyond the abstract and into the concrete - the numbers themselves.

We're committing to use 50% of our revenue in order to assist the Nonprofits serving homeless youth and families.  You've seen and heard it said all over the website and blog. How very nice!  But let's stop an analyze this so that we all know what happens here.

Let's say you use the services of Responsible Referrals to find a Buyer-Broker Real Estate Agent because you're looking for a new home in Philadelphia, PA.  According to the National Association of Realtors (NAR), the median price for a 'Philly' home in February, 2011 is $194,600.  You and your absolutely amazing agent find this exact house and write an offer which is accepted at the median price.  At the closing, you present a check for the down payment and closing costs.  You sign a new mortgage.  The seller's existing mortgage is paid in full, the seller's closing costs are paid and a check to the seller is written for the leftover balance.

OK.  So how does Responsible Referrals get paid?  As part of the closing costs paid by the seller, there was a line for commission paid to Real Estate Brokers.  Let's assume that the seller contracted with the Listing Broker for a commission of 6% of the sale price.  Where does that go, exactly?  I suppose another chart is in order.

Example based on 6% of a $194,600 Sale
So here it is.  By asking Responsible Referrals to find your agent, you have helped to donate $656.44

You made a phone call.  Or maybe you completed an online form. The result?  You work with a great Real Estate Agent.  You purchase a beautiful new home.  It has cost you nothing for this service and now you get to vote for the nonprofit who will receive this money.  It's so easy.  It's absolutely painless.  You really don't even have to use the "expensive" real estate that you own.  More importantly, a little bit of happiness is guaranteed - for you, for some worthy Nonprofit and for some 7 year old child who needs you and the assistance you can provide.

NEXT POST: Coming Up on April 11 ...

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