Agents and Our Home Path

REAL ESTATE AGENTS AND EQUITY SHARING

Whether a listing is new, tired or expired, Restic Properties may be the appropriate answer. Restic only works with listing agents. This benefits the buyer because 95% of all listings are through licensed agents; the seller by increasing the awareness and additional potential of selling the property; and the listing agent because they have a greater chance of earning a full commission rather than a rental commission or nothing.

Equity Sharing is the tool Restic uses to bring “challenged” buyers and sellers together. Equity Sharing has been approved by the California Assn of Realtors for use by agents.

The Program DOES NOT REPLACE an agent’s marketing efforts, it augments them by offering buyers an additional method of purchasing a property where traditional means might fail because either the property or the purchaser cannot qualify for traditional financing. Experts opine that fully 35% of potential buyers have been excluded from the market due to increasingly stringent requirements for granting of credit for a purchase.

Because of the “step” process Restic uses to mitigate cash requirements for buyers certain results are created:

1. The likelihood of sale is increased – unlike a rental or lease option, the Buyer gets tax advantages
2. The agent is more likely to get a commission even if it is separated into two payments;
3. The Seller is more likely to accept because the average of the initial sale and the final sale is greater than if the Seller sold the property using traditional financing.

Agents can take comfort from the fact that the Equity Share and Lease Agreement, a requirement of any equity share transaction, is a creation of the Buyer and Seller.  It deals with virtually all of the issues of the equity sharing relationship from problem identification, solution, and methodology to capital contributions and distributions to formulae for allocations of profits and losses.  For example a “default” of the Agreement is very different from a “Default” on the mortgage loan payments.

Another important fact for both the agent and the Seller is that everything in the process is transparent to all Parties and the sale, just like any other, includes the normal inspections and safeguards as well as escrow and a policy of title insurance.

Henceforth, agents have a remarkable tool to increase their sales production and to shorten the time between listing and sale. Best of all Restic does all of the work providing the pre-screened Buyers, qualifying the Buyers, creating competition for the property and assisting the Parties in the creation of the Agreement and transaction as well as monitoring and mediating the relationship  after the sale.

Learn how Restic Properties and equity sharing might help you. We’re available to speak with you, your Broker, your Seller or all three anytime. One additional sale per year makes it all worthwhile.

Restic Properties, Inc CA DRE#01870080