span usually two or three years. At
class="cap">R ent to the end of the contract, the
Own is simply as it says: a landlord returns the entire
piece of property is rented to a deposit to the tenant.
person, and if the person
Cheonse is most often used
completes the period of rent, the during times of high interest
ownership of the piece of rates. The landlord is free to
property is turned over to him or use the deposit, as long as the
her. same amount is returned to the
Rent to own is applied tenant.
differently in the Philippines,
This term simply refers to a
as living spaces can be leased property that’s being offered for
under this type of agreement. sale at a lower price than what
Apartments are offered on a very it should normally get, because
long-term lease to qualified the property needs a number of
tenants, and if they complete the repairs to be restored to its
contract � 20-30 years or best condition.
so - the deed for the apartment
A house with a large floor
can be turned over to them, area and significant improvements
making them the owners of the may still be called a fixer-upper
property.
if, for example, the house has
Cheonse / Jeonse is a means of been neglected or abandoned for
leasing out apartments unique to several years, needing to be
South Korea. A tenant makes a remodeled to be fit to live in
lump-sum deposit on the rental again.
space, valued at anywhere from
This allows the seller of a
50-100% of the actual market property to accept a buyer’s
value of the space.
offer for that property, which
The tenant then pays no rent the seller continues to sell. If
for the duration of the contract, the seller gets another offer, he
or she can also accept that insist that it does.
offer, and then activate the
Of course, Redfin’s business
clause by notifying the original model demonstrates that it’s
buyer of the second offer.
possible to charge different
The original buyer now has a commissions. But Redfin has
specific period of time - which always been careful when listing
can be more or less than the a home to encourage our clients
stated 72 hours - to complete the to offer the buyer’s agent 3%,
requirements to buy the property. even while accepting a lower fee
Failure to do so will mean the for ourselves. In this at least,
original buyer loses the we’re like everybody else. We
property, and the second buyer analyzed commissions paid to
can purchase it.
buyers’ agents for all
Because we’re curious broker-listed residential homes
masochists, we decided to answer sold in King County in 2007, and
that question. But first we had found that 79% paid commissions
to establish what constitutes a of exactly 3% to buyers’ agents.
“higher” commission. Higher than Whether 79% adoption constitutes
what? While traditionally the standard behavior or not, it is
seller has offered the buyer’s certainly common behavior.
agent 3% of the final home price
The average commission,
and reserved 3% for his own factoring in the lower and higher
agent, the very existence of a commissions as well, was 2.88%.
standard commission has been The chart below (source: NWMLS)
hotly disputed. Again, some notes shows the average commission
from the fray: Realtors from grouped by list price of the
Canada to Florida insist that a house. Most agents will tell you
standard commission doesn’t that the commission as a percent
exist, while professors from of the list price is lower for
Berkeley and the Hudson Institute more expensive homes. We found
this to be true: for list prices
above $2 million, the average google_ad_format =
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About the Author:
Jon Caldwell is a content manager. Much of his articles can be found at http://realestatereferences.net
Article Tags: buyers, commission, property
