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In a haste to sign up for a new home, a lot of buyers skip a very easy step that will make them over TEN THOUSAND DOLLARS. It involves a simple phone call from you to me, and a straightforward, one page contract.

My name is James Smith, and I AM THE BROKER/OWNER of California Magic Real Estate. My cell phone number is 510-506-2840.

I am licensed to do all aspects of residential Real Estate (Buying and Selling of homes, and the brokering of Real Estate loans), but I specialize in the LISTING of homes, and REBATES on REFERRAL FEES I RECEIVE BY SIGNING YOU UP WITH A NEW HOME DEVELOPMENT. The latter is how you can make your money. Here's how it works.

When a builder initially puts their development up for sale, they will typically offer Real Estate Agents a commission if they bring in a client on the client's FIRST VISIT, and the client ultimately purchases a home within the development. The commission varies, and is normally within the 2% to 3% range. After the FIRST VISIT, I essentially do nothing except verify that you have actually bought the home from the builder. The builder takes care of everything. It is "easy money" for me.

I can offer my services to accompany you on your visit to the builder, and then split the commission with you once you move into the newly-built home. I AM OFFERING THE BEST SPLIT ANYWHERE: I get the first $3500, and you get the rest of my commission. We would both be benefitting by THOUSANDS of dollars, and it would only take an hour or so of each of our time.

HERE ARE A FEW QUESTIONS YOU MAY BE THINKING TO ASK ME:

 Is our contract in writing? Yes. In fact, if an Agent were to promise to do this and NOT put it in writing, my suggestion to you is to NOT trust him. The contract I will have with the builder is also in writing (you will be able to verify the commission amount that I am making).

Is our contract legal? Yes. The builder will 1099 my referral as my income, and our contract calls for me to 1099 your "rebate" as your income. It is legal.

We've already gone to (Place "X"). Can we still do this with you? No. Once you've filled out the builder's registration card, the builder will not allow you to re-register with Agent representation.

Why would a builder offer this? There's an understanding that Agents bring in about 90% of the valid buyers in Real Estate transactions. With that understood, a builder would rather pay us a commission than have us boycott showing their properties and have us show you a "used" house instead. Many builders participate in this, including (but certainly not limited to) Kaufman & Broad (KB Homes), Shapell, Summerhill Homes, Toll Brothers and Castle Compani. The purchase price range can be as little as $200,000 and as much as $2,000,000.

Does this referral thing ALWAYS work? Not always. In a really hot seller's market (like between 2001 and 2005), the builder will not often offer this to Agents. Since Real Estate is now a BUYER'S MARKET, a builder will more-than-likely now offer an Agent commission.

Have you done this before? Yes. Often.

Is this OK with your boss? As stated before, I am the Broker/Owner of California Magic Real Estate. I got my Agent license in 1994, then my Broker license in 2004, and opened up my own company then. I am "the boss". It's OK with me.

I've tried to be complete but brief, but feel that I may have failed in the latter.

James K. Smith, Broker
California Magic Real Estate
65 Trailview Court
San Ramon, Ca 94583
DRE # 01180918
510-506-2840(cell)
JKSmith@CaMagic.com