Frequently Asked Questions

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 Answer-  NO, NO, NO. While from company to company there are always minor differences in marketing , we ARE A FULL-SERVICE COMPANY do everything all full-service companies do.  We encourage you to look at “what we do” on our website and compare. Some Brokers may attempt to mislead you and call Atomic Realty a “discount brokerage”, implying our services are lesser. Not so, we are a FULL SRVICE real estate company.  All we ask is you compare our services and prices to theirs and do what is best for you.

 All we have to sell is our time, experience, and expertise. We believe everyone deserves to make a living, including us, and we want to save you the most money yet still make a living.   

Often we are asked "if a Buyer comes to me and I have already listed on your $599 + 4% plan can I just switch to the $599 +1% plan?"   The short answer is no, once we have begun our time in marketing preparation (photos, 3d, MLS, etc.) we would like to be paid for it. 

 HOWEVER,  if at the time of listing on the $599 +4% plan if you have a Buyer you have been working with, give us their contact information we will contact them and see if they want to move forward. (This we will do under the $599 & 1%)   But remember once we start the marketing process (photos etc.) or if your Buyer brings another Broker into the transaction you pay the full $599 + 4% .

Answer- No, once you will have listed a percentage with that other company on the MLS and as with any other Broker we will expect that commission.

 Answer - The short answer is no. To review other people’s contracts would be practicing law, you should seek an attorney to review legal documents you created. What we can do is not use your documents and complete all the documents which we have available as Realtors and do the entire the entire transaction,  managing all the parties and documents for both the Seller and Buyer, for only $599 plus 1%. 

Why does Atomic Realty charge a $599 non-refundable transaction management  fee? (at the time of listing.)  At Atomic Realty, LLC. we are serious about selling your property, are you?  The $599 non-refundable transaction management fee pays us for our time of managing the transaction.   By not spending time working on listings that sellers are not serious about selling,  we can save money for those whom are serious.  In fact, often thousands of dollars.   See our pricing plans. 

  Understanding an escalation clause

There are many factors to consider in an offer to purchase; one factor can be an escalation clause. What is an escalation clause? As a Seller do you want to consider escalation clauses and as a Buyer do you want to offer one?

An escalation clause is part of an offer that increases the offer up to a certain level. Usually, in a multiple offer situation, this  increases the Buyer's chance of getting an accepted offer and generally increases the Seller’s sales price.

As an example: Seller Y lists their home for  $350,000 dollars indicating they will consider escalation clauses.  

Seller Y receives 3 offers 

1) Buyer A offers $350000 with no escalation clause, 

2) Buyer K offers $375000 with an escalation clause that will pay $5000 over any other bona fide offer , with a maximum of $390,000 and 

3) Buyer X’s offer of $345,000 with $2000 over any other bona fide offer with a maximum of $380,000.

In this example, with all other terms in the offer being equal  (inspections, appraisals, lenders, etc) We would recommend Seller Y :

Not to accept Buyer A, Buyer A’s offer was $350,000 with no escalation. It is not the highest offer nor does not escalate to above asking price. In this case Buyer A “tops out” at $350,000

Not to accept Buyer X because  it starts lower than asking, but  it does escalate above asking price, but not above Buyer K’s top price or $390,000. In this case Buyer X tops out at $380,000.

Accept Buyer K’s offer, Buyer K would get the home for about $385,000, This is $5000 over any other highest offer (Buyer X’s $380,000), capping at a possible max of $390,000

SELLERS: what are the advantages and disadvantages of considering escalation clauses?  

1. Advantage: if the right buyer is in the market you could net far more than your asking price.
2. Disadvantage: Generally if a seller is accepting escalation clauses  the offers will start lower and escalate to somewhere above the asking price.  In hopes of getting a bargain if no other offers are tendered the Buyer’s will often not bring their “highest and best” offer.

BUYERS:  What are the advantages and disadvantages of making an offer with an escalation clause? 

1) Advantage - Rather than starting with your top price, you can start your offer lower knowing where your top price is and hopefully not have to pay the absolute top.

2) Disadvantage - An escalation clause puts you into a bidding war, if you really want the home that's okay, but you will often pay more than it may be worth.

Second to real estate commission this is often the most expensive line item in closing.  In general, title insurance is an agreement to indemnify against damage or loss from a defect in title as evidenced by a policy of title insurance to a specific parcel or real property. Following a search and examination of public records and in exchange for a premium paid, title insurance companies will assume the risk that title to a parcel of real property is as stated to be in the policy of title insurance. 

Homeowners insurance pays for damage and loss caused by outside forces such as fire and weather — or even vandalism committed by a burglar. If any of these events damage or destroy a portion of your home, insurance would help you rebuild and replace your lost and damaged belongings.

For example, if a tree falls and crashes into your kitchen, your homeowner’s policy would help you replace your damaged appliances. However, if your oven range quits working, repair and replacement would not be covered through a home insurance policy.

A home warranty covers the cost of repairs and replacements of certain appliances and systems in your home caused by everyday wear and tear, or from old age. Examples of appliances and systems that may be covered in a home warranty plan include:

• Washers
• Dryers
• Oven ranges
• Furnace
• Hot water heater

There are other parts of the home that a home warranty covers, but every specific plan is a bit different. The bottom-line difference with regards to warranty vs. insurance is that insurance covers unexpected events that lead to damage, while warranties cover events that are somewhat expected, such as the aging and ultimate breakdown of appliances and systems.

 A great question – here is a kind of dull answer.

Agency (Where you represent one party) creates fiduciary duties. An Agent has the duties of Reasonable care, Accounting, Notification, Obedience, and Loyalty. None of these are unreasonable but it impossible to serve both the Buyer and Seller thus we serve as a transaction broker, serving the transaction, not an individual. 

Transaction Broker – A Broker who works to complete the transaction not specifically representing only the Buyer or Seller but owes both the Seller and Buyer the duties of honest and fair dealing, no conflicts of interest, and keeping all confidential information from either party confidential,  account for moneys, and notify of all offers.  Most New Mexico brokers work in this fashion. The logic behind this is – If I have an agency relationship with the Seller, and if I have a Buyer waiting for a house just like yours and tell them I work only for the Seller the odds are they will likely not look at the house as they want someone who works for the transaction not just the Seller. The bottom line is, as a Seller, do you want me not to show your home to a Buyer I am aware of and are looking for a home like yours?

Think of the GRT as New Mexico’s sales tax on services. The percentage varies from county to county but it’s usually a 7-8% tax on the commission you pay. At closing it is added to the sales commission and the Brokerage pays it to the state for you. Generally, this is paid by the seller.

In the State of New Mexico the price that a home sells for is NOT public information. If your neighbor sold their home without listing it with a Realtor (“off market”)  there will be no public record of the sales price. No one, including all Realtors nor Zillow nor anyone else, other than the County Assessor and the parties will know the sales price. 

However, If a home was listed with a Realtor on the Multiple Listing Service, the sales price will be available to Realtors to see. The best and most complete information available to a home seller is the competitive market analysis that a Realtor can provide using the MLS sales data. At Atomic Realty we can perform a CMA for you, no strings attached. house down the street sold but you don’t show it as a comparable in your market analysis. 

 What does “waiving” the appraisal mean?

Appraisal, in markets where prices are rapidly rising, appraisals often don’t keep up with sales prices, as the appraised value is determined from other prior sales. 

In a Sellers’ market, to strengthen the offer a Buyer will often waive the appraisal.  What this means is that if the bank's appraiser does not appraise the home for the purchase price, the Buyer agrees they will pay the difference between the appraised value and the purchase price.

If the offer is a cash offer the Buyer may want to strengthen their offer by still waiving the appraisal contingency as there is no bank requiring one.

Example 1:

Buyer X makes an offer of $360,000 on a home waiving the appraisal, borrowing with a 20% down conventional loan.  The home only appraised at $350,000.  The Buyer will end up getting a loan of $280,000 putting down 20% ($70,000)  and also pay the difference between the offered price and the appraised price ($10,000) in cash. In the case of a conventional loan, if the buyer does not close the Buyer will lose the earnest money, however, if the loan was a FHA or VA and the buyer does not close the buyer would still get their earnest money back.

Example 2: Unlike an offer with a bank loan, If the offer is a cash offer an appraisal is not required.  However, a buyer can still require the property to appraise in the purchase contract.  

Question: I am planning on buying a home elsewhere.  Can Atomic Realty get me my loan payoff information and closing costs while selling my current home to supply the Broker I am working with at my new location?  Atomic Realty does not have access to your personal information such as a loan payoff.  However, based on what you tell us we provide you an ESTIMATED proceeds which will include closing costs, commission, and the loan information you have provided.  Most lender’s websites should be able to provide you the estimated loan payoff based on your anticipated closing date.

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