Frequently Asked Questions
How does it work?
Price Setter connects you with Agents who offer a dynamic service fee to their clients. What does that mean? It means that their fees are flexible and will increase or decrease automatically depending on what criteria you’re looking for in a property and who you’re comparing them against. That’s right! Agents also adjust their fee based on other Agents you compare them against! Competition brings about the best deals and we’re putting you in charge of which Agents compete!
I am a property Buyer. Am I responsible for the Agents commission?
No! It’s just the opposite! Your agent (The Agent representing the Buyer) will share with you the difference between the commission they agreed to (through Price Setter) and the commission they are getting from the Seller’s Agent. You can then use the difference you receive and apply it towards your closing cost or down payment as a rebate!
Rebates are non taxable, the IRS views the rebates as a reduction in cost and not as income.
Just a reminder: In the Real Estate industry it is customary for property Sellers to cover the commission fees (usually around 6% of the property value) of the Sellers Agent. The Sellers Agent is then required to split a portion of this commission with the Buyer’s Agent.
Buyer Agents normally receive a split of 3% from the Seller’s Agent so if your agent offered you a 2% fee then the 1% difference is to be applied towards your closing costs or down payment as a rebate.
EXAMPLE: The price of the property you are purchasing is $700,000. Your agent will receive (in most cases) 3% from the Seller’s agent or in this case a $21,000 commission on this property. If this agent offered to represent you for a fee of 2%, ($14,000), at the time you conducted the search on Price Setter, he will split with you $21,000 (the 3% received from the Sellers Agent) minus $14,000 (the 2% Agreed to through Price Setter) = $7,000. $7,000 is shared with you to be applied towards your closing costs or downpayment.
Will it cost me anything?
No. Price Setter is a free platform for anyone looking for a Real Estate Agent and interested in saving money.
How long does this process take?
Everything happens in a real-time, on demand environment, Agents are asked to set unique parameters that allow them to adjust their fee based on your specified criteria and who they’re being compared against. Everything is automated from the moment you click “Compete”. That means you get your result in an INSTANT! There’s no waiting!
Will I be able to see a list of all Agent fees upfront?
No. Remember, these are dynamic fees so they are not set in stone until a winner is determined. We ask our users to wisely choose Agents based on a number of variables including experience, languages spoken, location, professional background and more. Doing it this way guarantees that you’ll get Agents that fit your needs first. After that you can determine from this group who will give you the best deal by engaging them to compete against one another. Once one winner is determined from your selection the winning fee is disclosed.
What if I am not satisfied with the offer presented?
If you’re not happy with the offer you receive you don’t have to accept it! You can use Price Setter again and refine your search criteria to better meet your needs until you are satisfied. Once you’re satisfied you can submit your email address to lock in your offer and connect with your Agent.
Why do I need a confirmation number?
The confirmation number is needed so that Agents don’t receive any “surprises” in regards to the discounted fee. The confirmation number can be used to look up referrals and any agreed to commissions so that both parties have proof of what was agreed to, by whom, at what time, and on which date.
Why is the confirmation number hidden?
The confirmation number is hidden at first and the discount offered to you isn’t locked-in until you submit your email address. The winning Agent won’t know that they’ve won until you submit your email address. This encourages more serious interaction between Agent and Client. Don’t worry; we don’t share your address with anyone but the winning Agent.
How long will the offer last?
You can lock in your discount by submitting your email address so the winning Agent can get in contact with you. All offers expire after 7 days after you have locked it in. If you don’t lock in your offer it will expire the moment you leave the page.
How do I know I'm getting the best deal?
The best deal all depends on how much competition or demand you create. You’re in charge of selecting which Agents to engage. You will get the best deal possible out of the Agents that you select. If you select two Agents you will get the best deal of those two. If you select ten Agents you will get the best deal of those ten.
What motivates Agents to compete?
Our platform offers a set-it-and-forget-it model for Real Estate Agents. Agents can set their own parameters which can adjust their fee automatically and in real-time any time a potential client engages them. That means they don’t have to actively be in attendance or a participant behind the scenes to compete. Agents don’t have to set their parameters any higher or lower than they’re willing to go, which makes every accepted offer the right deal for them. We notify every winning Agent after a client has accepted an offer, after which they are free to get in touch with their new referral.
What happens after I lock the discounted fee?
After you lock-in the discounted fee, contact can be originated by either you or the winning Agent via email. At that time the agent will ask you to sign a representation agreement form. You will need to sign this form in order for the agent to represent you and honor the discounted fee.
What is the difference between Price Setter and other websites with Agents that offer commission rebates?
Commission rebates offered by Agents on other websites are fixed and do not allow for automatic real time adjustments. Those fixed rebates are offered randomly by the participant Agents not knowing if the offered rebate is too low or too high in relation to the rebates being offered by competing agents. In other words they may be offering a fixed, low rebate unnecessarily or one that may be too high that they will never win.
With Price Setter the parameters set by each individual Agent come in to play only when or if they are being compared against other agents in the same area. If there are no competing Agents in the area searched by the client then that Agent automatically generates the basic maximum asking fee. On the other hand if there is competition to beat then the rebate will automatically adjust to go under the closest competitor down to a predetermined bottom line.
With Price Setter Member Agents do not have to split their commission fee with the host website. Membership is 100% free.
Do I have to actively attend the competition process?
The beautiful thing about Price Setter is that you can set your parameters and forget it! The parameters that you set compete on your behalf automatically any time a potential Client engages you against other Agents. If your proposal wins and the potential Client accepts your offer, we will send you a notification that you have won and you can enter into a formal engagement with your new referral.
What does Price Setter do for me?
The Price Setter platform was created for property buyers/sellers to be able to find a fair price for the services of local Real Estate Agents. Price Setter facilitates communication between Agents and potential Clients by helping them arrive at a mutually beneficial Asking Fee for services performed by the Agent, before any formal commitment. The best part about it is that everything is automated and happens in real-time. We allow Agents to set up Pricing Parameters that will help determine how much of a discount they would give for their services if they were being compared to another Agent by a potential Client . We also let Agents set pricing thresholds so that they don’t discount any lower than what would be profitable to them (These parameters are mainly asking fee, a percentage under closest competitor, and the lowest acceptable fee) These parameters engage in a series of permutations and algorithmic functions with the parameters of competing agents generating a winning result. The Outcome? Property buyers/sellers save more money; Agents see an increase in leads and can be more precise when adjusting their Asking Fee.
What does Price Setter expect from a Member Agent?
Any licensed Real Estate Agent can become a member of Price Setter. However, to retain membership Real Estate Agents must maintain an exceptional (Complying with all the requirements and codes of ethics of their Real Estate Association and the laws and regulations of the state where they practice) service rating (Which is developed through interaction with property buyers and sellers) and agree to keep a certain standard of quality when providing their services including:
➤ Listing on MLS
➤ Photos including interior and exterior and/or video of the property or advertising on BizBuySell or Loopnet (as minimum)
➤ Assist Seller in establishing price (Market Research)
➤ Suggest improvements
➤ Provide and install Real Estate sign
➤ Negotiation with buyers
➤ Advise Seller on contingencies
➤ Customary practices and local regulations
➤ Network with other Brokers and/or Agents
➤ Hold open house
➤ Pre-qualify buyers
➤ Preparation of contracts, addendums, etc
➤ Coordination with third parties
➤ Oversee the entire closing process
➤ Frequent Updates
How many agents will I compete against?
The number of Agents you compete against will vary and usually depends on the potential Client that is making the selections. One person may engage you based on a number of different factors including but not limited to: experience, your profile content, recommendations, certifications, languages spoken, properties closed within the last year, area of service, organization, activity range and more. It’s safe to assume you won’t be compared against the same Agents every time. It also may depend on how active your area is in terms of listings. It’s all about supply and demand!
Can I change my offer after I have won?
Buyers and Sellers expect Agents to hold true to their offers. For transactions to operate fluidly and with as little complication as possible it is in the best interest of all parties involved to adhere to the offer that has been agreed to. Thus, Price Setter urges all Agents to comply with this recommendation. Agents who do not comply may risk hurting their reputation which could result in their account being deactivated and a removal from the platform if any protests have been brought to our attention. We understand that in certain circumstances it may be beneficial for the parties involved to make an adjustment to their agreement. Price Setter is not held responsible for agreements negotiated outside of the platform.
Do I have to accept every referral I receive?
If you’ve won an engagement, the Client has agreed to your proposal, but you’re not ready to accept more referrals for whatever reason you hold the right to decline any new referrals. If you decide to decline, it would be in your best interest to communicate to your referral that you will not be accepting their business so that they can go ahead and search for a different Agent. It also may be a good idea to set your account to “inactive” so that you don’t receive any additional referrals until you’re ready.
How often can I adjust my Pricing Parameters?
You can adjust your Pricing Parameters as often or as little as you like. Agents that offer more competitive pricing are more likely to receive a higher number of referrals.
How should I differentiate my parameters for Buyers compared to Sellers?
As you already know, it is the responsibility of the Seller to cover the cost of the Sellers Agent, which will eventually be split with the Buyers Agent. Thus, when setting your parameters as an Agent representing a Seller you must take into consideration that a portion of your commission will be reserved for your counterpart, the Buyers Agent.
For Example: If the value of the property being considered is $200,000 and the industry suggested standard fee is 6% then each Agent will receive a $6,000 commission. As an Agent representing a Seller you can set your parameters to adjust based on what you’re receiving, but your counterpart (The Buyers Agent) will expect to receive no less than his/her share of the total which in this case is 3% or $6,000. You can set your parameters to adjust automatically anywhere between 3% and 6% as you see fit, but setting your parameter at 3% or under would be cutting into your counterpart’s commission.
As an Agent representing a Buyer the difference between what you receive from the Sellers Agent and what you agreed to with your Client is shared with your Client and can be applied to their closing costs.
For Example: If you receive 3% from the Sellers Agent or $6,000 in this case, and you agreed to charge your Client a fee of 2.5% then the difference between the two, 0.5% or $1,000 in this case, will be shared with your Client.
Is my Asking Fee listed anywhere?
Your asking fee is dynamic. It changes based on many different variables, therefore it would be virtually impossible to compare it against other Agents in some kind of list format. We do, however, show you’re final offer to the “Client” once you have been determined as the “winner” when compared against other agents. “Clients” will know you’re offering flexible pricing, but they will not know how far up or down you’re willing to go. All fee competitions are conducted in a closed environment, you are the only one that knows your competing parameters.
What makes Price Setter different from other web sites where people can bid for products?
Price Setter implements a patented transaction arbiter system that permits various sellers or service providers to compete simultaneously for one buyer or client, thus reducing the prices of the products or services, with this process participating merchants do not have to attend the price competition process, this is contrary to conventional auction web sites where various buyers compete for one seller thus increasing the price of the products or services having to monitor the bidding process constantly. At Price Setter, all of the bids are closed bids, meaning that competing merchants or service providers do not know the price of their competition or what their pricing parameters are, this way merchants or service providers do not have to disclose or advertise what will their lowest price be but their price is systematically adjusted by Price Setter transaction arbiter algorithm if or as necessary up or down to a predetermined limit.
What makes Price Setter different from other web sites where consumers can request quotes from various merchants or service providers such as new car dealers or Real Estate agents?
With Price Setter consumers choose which merchants or service providers ( car dealerships, Real Estate agents) they want to engage in the price competition, contrary to traditional web sites where merchants or service providers are rotated or are chosen based on the amount paid for the advertisement. At Price Setter bidders are actually engaged in a instantaneous, unattended automated competition. Traditional web sites can only offer negotiation through phone calls and/or emails where consumers have to negotiate prices person to person with professional sales staff.
What makes Price Setter different from other comparison shopping web sites?
Price Setter is not considered to be a comparison shopping web site, but a provider of a powerful platform that gives merchants and service providers the ability to adjust their prices in response to market demands and to consumers the ability to obtain the lowest price possible for any product or service sold on-line. It is the intention of Price Setter that consumers and merchants/Providers use this tool to interface with comparison shopping web sites, and give the consumer a much more satisfying and rewarding experience. Consumers most of the time are not experienced in negotiating prices, and comparison shopping web sites do not provide to the consumer the ability to negotiate. Price Setter permits merchants/providers to adjust their prices only if and when necessary and in response to whom they are being compared against by consumers, instantly, in real time and unattended.
What motivates merchants/providers to participate in a competition for the lowest price?
The opportunity to capitalize in active sales leads generated by Price Setter belongs to member merchants/providers as they have the opportunity to beat the prices of all non-member competitors. It is a lot more likely that a merchant/provider with “Dynamic Prices” will capitalize on active sales leads, than a merchant/provider with static “Fixed Prices”. One of the pricing parameters that merchant members can set up is how low can their price go; now, the great advantage of this feature over non-member merchants “Fixed Prices” is that this lowest price does not need to be advertised but it comes in to play only if and when necessary depending on who their “Dynamic Price” is being compared against, “Fixed Prices” are always advertised “As is” no matter how high or how low they are. Another great benefit for merchants/providers is that by becoming members of Price Setter, they can save thousands of dollars a year in ad campaigns and promotions offerings lower prices and good deals as statistics show, efforts that may times go unanswered or unnoticed by consumers or targeted public. Price competition is the core concept around which all modern economics is built, merchants/providers who fail to understand or react to consumer needs normally find themselves losing out in the competitive battle.
How does the price competition process actually work?
Our price competition engine implements a patented transaction arbiter which performs a series of algorithms and functions and systematically determines what the lowest price of a product would be based on participant merchant/provider defined criteria such as how low can their price go and how close (percentage wise) can their price be under the closest competitor, these parameters are only known by the individual bidders. The price competition process can be initiated manually by a consumer to obtain instant results.
How can I tell if a merchant is a member of Price Setter?
A merchant can be a member even if it participates with only one or a few of its products, and not necessarily its entire inventory. Once you are in their web site, you will be able to tell if they are a member if the item you intend to purchase shows the Price Setter widget; prices that display the widget are “Dynamic Prices”, this indicates that the price can be compared to a competitor’s price and if the competitor’s price is lower the member merchant’s price will automatically adjust to beat the competitor’s price instantly.
My favorite shopping web site is not a member of Price Setter; can I transfer their product prices on to Price Setter widget even if their prices are not dynamic?
Yes but their chances of winning the price competition are very low; you can perform an automated price competition between “Dynamic Prices” from member merchants/providers and “Static Prices” from non-members, the non-member “Static Price” however, needs to be traceable via an URL address or screen shot in order to be verified by other merchants/providers in the event that the “Static Price” had an effect on the final result of the bid.
How can member merchants/provider afford to set their bottom line pricing parameter to price a product or service lower than the lowest prices advertised by non member merchants/providers?
By advertising and selling their products at regular list prices to those shoppers that land directly at their website page, that way having a higher margin and be able to sell low when compared side by side to a non member merchant/provider advertising the same product at a lower price.
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