The Cimpler Way is a unique way to buy a property and realize immediate and long term savings. It is a fee-based method where the buyer pays at the completion of a home buying transaction, similar to the commission based method. However, the Cimpler Way allows buyers to choose the amount of service they want to receive from their agents, including a “do it all” service (referred to as full service in the commission based method). Cimpler services can be performed multiple times if the buyer’s offer is rejected or his/her transaction falls through, like the commission based method and unlike other fee base methods. Additionally, the buyer has a choice to pay for agent services “outside of the loan” further lowering the property price and increase immediate and long term savings. Cimpler allows buyers to choose, either their own real estate professional, or to work with Cimpler selected professional. To provide the highest service quality Cimpler matches agents to buyers requirements and monitors their performance.
The Cimpler Way is divided to three stages:
- "Is This Right House?"
Professional Services Group including: Tours/Neighborhoods, Price Analysis, House Comparison and Review/Analysis of Disclosures.
- "House Purchase"
Professional Services Group including: Contract Preparation, Contract Negotiations and Contract Execution.
- "Moving In"
Professional Services including Clearing Unresolved Issues.
Check also the
Cimpler Fee Based Real Estate Professionals.
The Listing Price is the price of the house as listed on the Multiple Listing Service (MLS).
The Cimpler Price
is the purchase price for properties bought using the Cimpler Way method. As Cimpler buyer always pays less for agent services, the Cimpler Price is always lower than if property was purchased using commission or any other method (Cimpler discount goes directly to seller, so seller proceeds are higher than using any other method). Because Cimpler Price is lower buyer’s real estate taxes, monthly mortgage payments, home insurance and down payment are also lower than if the house was bought using any other method. The Cimpler Price depends on the amount of service buyer requests and buyer pay less even for “do it all service or comprehensive service” (full service in a commission based service).
CIMPLER FEE-BASED REAL ESTATE PROFESSIONALS
Real Estate Agents are agents with a CA state license to legally represent the buyer or seller in a real estate transaction in exchange for commission. All agents work for a real estate broker.
| Cimpler Fee-based Real Estate Professionals
are licensed Real estate agents partnering with Cimpler Real Estate providing fee based Real estate services (referred to also as Professional Services) following the Cimpler Way
of buying real estate. Fee Based Real Estate Professionals earn fees in addition to commissions they earn through their brokers.
COMMISSION vs CIMPLER PAYMENT METHODS
Commissions are the most popular way of paying for agent services while buying or selling real estate today. The commission is included in the price of the property. The amount of commission is agreed upon between seller and listing agent. Commissions are split to two parts, the listing agent's commission and selling agent's commission (buyer's agent or the agent "who sells"). Listing agents can increase (often double) their commissions if buyers choose to be represented by them.
Cimpler Payment Methods
refer to how client pays for agent service, not to when the payment is made. All payments are made at close of escrow.
There are two payment methods for Professional Services provided by Fee Based Real Estate Professionals:
Pay As You Go and Pay Fees as Commissions. Each has its advantages.
1) Pay As You Go -
A method of payment for Professional Services allowing you to pay for agent services outside of your mortgage (at close of escrow). This payment method yields high Long Term Savings as you do not add the commissions to your mortgage amount. Your Cimpler Immediate Price Reduction
is also highest for this Payment Method.
2) Pay Fees as Commissions -
A method of payment for Professional Services in which agent fees are added to your mortgage and paid at close of escrow. It produces smaller long-term savings than the Pay As You Go method. Your Immediate Price Savings are smaller in comparison to Pay As You Go method as the Total Cost of Services is added to the Cimpler Price.
FULL SERVICE vs FEE-BASED SERVICES
Full service, as it is commonly known today,refers to the services by real estate agents for assisting buyers in the purchase of real estate. There is no clear definition of what constitutes full service and while buyers today are doing more and more up-front activities themselves, the price of the "full service" offered by the buyer's agent has not evolved. The commission the agent receives remains the same regardless of the effort required to close a transaction.
Cimpler Fee-Based Services reflect the growing sophistication and independence of the buyers' efforts and reflects the changes in the house search process. Cimpler Buyers have the option to pay for only the services needed. They also have the option to upgrade services if required. Even if you choose Cimpler's comprehensive (full service option,) they still save over today's commission-based system.
IMMEDIATE PRICE REDUCTION
Immediate Price Reduction is a purchase price reduction you obtain when buying from Cimpler and their Fee Based Professionals . The amount of savings depends on the amount of CimplerServices purchased compared to the Listing Price and Payment Method selected. Check the Sandbox to see how it works and how you can save.
POTENTIAL LONG TERM SAVINGS
If you pay up front, your Long Term Savings increases, reflecting the smaller loan taken if you buy a home the Cimpler Way. Most importantly, because your price is lower, your real estate taxes, paid every year, will also be lower. These savings are realized over the lifetime of the loan and can save you thousands.
The Cimpler Price includes the Cimpler Fee which includes a Purchase Contract Addendum to negotiate the Cimpler Price, submission of contract to listing agent (if necessary), opening escrow,communication between buyer and listing agent (if necessary).
ALA CARTE SERVICES
You can select Professional Services individually (Ala Carte), rather than picking a package of services.
TOURS / NEIGHBORHOODS
This service is offered to familiarize you with particular homes and neighborhoods. You will receive guided tours through neighborhoods or will visit and view houses as requested for up to 5 hrs per service contract. This service will help clients to understand the pluses and minuses of different properties and neighborhoods.
You receive a detailed price analysis report utilizing comparable sales and prices of homes currently active. Specific pricing history for each house being compared (either active or sold) is used to illustrate the impact (or possible impact) of initial listing price on the final selling price. Each report is followed by a verbal discussion/ explanation. The contract covers analysis for up to 3 properties.
House Comparison is a FREE SERVICE provided by participating Cimpler Fee Based Real Estate Professionals,with any service purchased. You receive up to 3 house comparisons of comparable properties (if available in the public record). Typically, a property is compared against 2 to 5 other properties using data available in the public record.
REVIEW / ANALYSIS OF DISCLOSURES
This service provides the analysis and review of disclosures for up to 5 properties. Disclosures alert you to issues specific to neighborhoods, such as moisture or settlement cracks in basements of Foster City (built on the landfill), requirement for lateral sewage ordinance in Burlingame or Hillsborough or 3R reports in San Francisco or Oakland. You receive information on what disclosures should/could be requested, before and after making an offer.
This service provides Contract Preparation for a single property (see Contract Type for contract types supported).Fee is paid, as in the case of commission method, only if transaction is successful.
Cimpler supports the following purchase contracts: California Association of Realtors (CAR), Peninsula Regional Data Service (PRDS - commonly requested in Silicon Valley and parts of San Mateo County) and San Francisco Association of Realtors (SFAR). Cimpler charges the client for legal review of any other purchase contracts submitted.
If a Seller counters the contract, either you negotiate the contract yourself or you elicit the help of a Fee Based Real Estate Professional by purchasing the Contract Negotiation service. Save more by purchasing Contract Preparation and Contract Negotiations together as a part of the Package 2. Fee is paid, as in the case of commission method, only if transaction is successful.
This is the most important, difficult and time consuming task performed by an agent. Once the contract (purchase agreement) is accepted by the seller, the contract execution phase begins. You can do it yourself or hire a Fee Based Real Estate Professional. The service encompasses activities from purchase offer acceptance by both parties to, either successful completion or closing of a transaction (most of the time) or contract cancelation, or contract voiding if one of the parties to the agreement fails to remove contingencies and/or fulfill conditions. A Fee Based Real Estate Professional is responsible for scheduling and completing of all inspections as defined in the contract and making sure that all closing documentation is complete.
CLEARING UNRESOLVED ISSUES
Imagine that you just moved into your house and found things are not exactly as you expected. Some fixtures and/or appliances are missing or furnace you expected to work is not working. A Fee Based Real Estate Professional will guide you to a solution, whatever it might be - talking to the selling party to rectify problems, analyze the purchase agreement and its implementation to suggest solution, hiring a cleaning company or advising on what and how to do. Again the key role of a Fee Based Real Estate Professional is to provide “guidance” in search of solution and providing a solution if it is not beyond real estate agent capabilities, such as legal or financial advice.
This is a critical and the most valuable service provided by our Fee Based Real Estate Professionals. It is part of the Package 4 -- Cimpler Comprehensive Service option. You receive virtually unlimited ongoing consultation during the House Purchase and Moving In stages of buying a house.
OTHER PROFESSIONAL SERVICES
SERVICE PACKAGES 1, 2,3
: Individual services are packaged into convenient service groups (Service Packages) and offered at a discount.
Package 1: This Service Package includes all services in the “Is it The Right House?" stage, prior to making a decision to which house to buy. Services include Tours/Neighborhoods, Price Analysis, House Comparison and Review/Analysis of Disclosures.
This service includes Contract Preparation and Contract Negotiation services. Following the contract preparation, the Fee-Based Pro will submit the offer and negotiate, on your behalf, with the Listing Agent.
Package 3: The service includes all services of the "House Purchase" stage such as Contract Preparation, Contract Negotiation and Contract Execution. The service of a Fee-Based RE Professional is limited to 10 hours per contract. If the effort required to provide Package 3 services exceeds the 10 hour limit, you can upgrade the package to Package 4 to obtain unlimited Fee-Based Pro support. See The CImpler Way
SERVICE PACKAGE 4 - COMPREHENSIVE SERVICE
Package 4 (Comprehensive Service). This service package includes unlimited consulting support by Fee-Based RE Pros for all activities performed during the "House Purchase" and Move-In stages. The support for Pre-Sale activities (all services in the "is It the Right House?" or Package1 services are limited to 5 hours per contract.