Home Owners - Non Members
As an invited guest to our site, you must have already spoken with one of our representatives who peaked your interest. Our website is designed to be very informative and will give great detail as to how our program works. Please allow approximately 15-20 minutes to get through the presentation. We assure you it will be well worth your time!
Who Are We?
Marquis Enterprises was founded on the premise that there just needs to be a better, more cost-effective way for homeowners to engage in any real estate transaction. In most cases, your home is your largest asset, and probably the most important. So why does it seem that as soon as you want to sell, buy, or refinance, everyone wants their piece of your hard-earned equity? We feel this is a major issue in the industry today and our goal is to create a solution that benefits the homeowner like never before.
To accomplish this goal, Marquis Enterprises has created and partnered with a large network of REALTORS® and Mortgage Brokers who share similar beliefs. These alliances will allow homeowners to preserve the equity they have worked so hard to create, while still receiving the highest levels of service. We at Marquis feel that if we truly put our client’s needs ahead of our own and help them to preserve and create wealth, we have succeeded.
How Are We Different?
Marquis Enterprises is NOT a real estate or mortgage company. Most real estate and mortgage companies are primarily interested in increasing THEIR bottom line, as they should; after all they are operating a business. However, this creates an inverse relationship because as they strive to increase their bottom line, they are actually decreasing yours. Marquis Enterprises recognizes this and by utilizing our expertise in the industry combined with our unique structure and design, we have developed a system that increases everyone’s bottom line.
How do we accomplish this? It is quite simple. Marquis has partnered with several pre-screened REALTORS® and Mortgage Brokers whom we provide free advertising, free marketing, free exclusive leads, as well as an additional income through our profit-sharing program. In return for our services and compensation to them, they have all agreed to provide our clients with substantial discounts on commissions, no closing costs, guaranteed best rates, and no hidden costs. Marquis Enterprises has virtually pre-negotiated these discounts on your behalf while still providing additional income and enough volume for our affiliated REALTORS® and Mortgage Brokers to remain profitable.
Quick statistics:
- Did you know the average person either buys or sells a home every 5 to 7 years Many people buy their homes with intentions of staying for longer than 5 to 7 years. However, a lot can happen over this short period of time, jobs can change, children can grow older and move out, children may be born, etc. Nobody can predict the future.
- Did you know the average homeowner will refinance their property every 4 to 5 years?This can be due to falling rates, cash flow needs, debt consolidation, etc.
- The most common sales commission on the sale of a home is 6%although this is negotiable.
- The average mortgage broker makes more than 2% of the loan amount net of fees.
- Most people that have bought, sold, or refinanced a home feel that they paid too much in fees and costs.
Many people that have been through either transaction felt that it became stressful.
Typical 6% brokerage:
This is the most common, most expensive, but in many cases the most effective type of brokerage to list your home with. Typically 3.2% of the sales price will go to the agent representing you, and 2.8% of the sales price will go to the agent representing the buyer. This means if you sell your home for $250,000, you will pay $15,000 in sales commissions. However, this has been the most common because it is often the most effective. The agent spends more time and money marketing your property because they want the big payday. They provide knowledge and expertise, along with excellent negotiation skills which often helps in receiving top dollar.
Another aspect of selling your home is offering incentives for someone to buy your home. In most cases, the potential buyer will ask for you to pay their closing costs to buy your home. This is because they probably do not have $5,000 liquid to pay for their closing costs. They also know that since you are selling your home, you probably have some equity that you want to realize. This could result in paying an additional 2%- 3% toward closing costs. For the same $250,000 home, you would pay an extra $5,000- $7,500. Of course you can refuse to pay their closing costs, but that could mean a longer time on the market since you are offering no incentive. This means that just to sell your home at $250,000 you would pay $20,000 just in commissions, fees, and concessions.
Projected Sales Price (current home) |
$250,000 |
Estimated Purchase Price (new home) |
$350,000 |
Loan Amount (purchase. or refinance) |
$300,000 |
|
|
Sellers Agent Commission |
$8,000 |
|
|
Buyers Agent Commission |
$7,000 |
|
|
Buyer's Closing Costs Incentive |
$5,000 |
|
|
Total Costs |
$20,000 |
Discount Brokerage:
There are alternatives to using a full service brokerage that charges around 6%. One of these is to use a discount brokerage. Discount brokerages are becoming more and more popular because they cost less money. There are several companies that will sell your home for 4% commissions. This means on a $250,000 home, you would only pay $10,000 rather than $15,000. Now suppose you intend to pay the buyer’s closing costs as shown earlier, that is an additional $5,000-$7,500.
Projected Sales Price (current home) |
$250,000 |
Estimated Purchase Price (new home) |
$350,000 |
Loan Amount (purchase. or refinance) |
$300,000 |
|
|
Sellers Agent Commission |
$3,000 |
|
|
Buyers Agent Commission |
$7,000 |
|
|
Buyer's Closing Costs Incentive |
$5,000 |
|
|
Total Costs |
$15,000 |
So in this case it seems like you have saved $5,000 by using a discount brokerage. However, this is not always the case. Many discount brokerages provide inadequate service. This is created by the mere fact that they are making less money and therefore cut corners in terms of marketing. Many claim they will provide full service, but the truth is that they just give you a sign, put your home on MLS, and wait. When the home does not sell quickly, the agent is quick to just suggest dropping the price because the longer the home is on the market, the more money it is costing the agent to market the property which results in a lower profit to the agent when it sells.
This means that the agent is no longer interested in receiving top dollar, he/she just wants a sale so he/she can stop spending time and money. For some people, this service may be the right choice, but for others it is not. If you use a discount brokerage, be sure to ask exactly what services are being provided and get it in writing.
For Sale By Owner/Flat fee Service:
This is another alternative and is theleast costly. Many of these firms are a la carte companies. For instance, an MLS listing might cost $400. Some other items on the menu include Paperwork Assistance which might cost $2,000. This means that you find the buyer and negotiate ON YOUR OWN. These companies simply handle the paperwork.
One more service is known as a Seller Assisted which may cost $4,000. This means that there is an agent who does some limited marketing, but when a Real Estate Agent or buyer calls, the seller acts as the “showing agent.” This type of service is usually used by someone who wants to save a lot of money, which is what we all want to do. However, inexperience can lead to not receiving top dollar, and possibly not even selling at all. In fact, most people who start with this type of listing end up using a full service broker because it was too difficult to do on their own.
Again, if you decide to use this type of service, be prepared to spend a lot of time on the market or to receive a lot of low offers. When a buyer sees a home that is FSBO, they automatically think they can offer low because you may be inexperienced. They expect you to work with them more and often you may end up settling for a deal that yields less money in the end than if you had used an experienced agent and paid the commission. Our suggestion is to only use FSBO if you have experience in the industry.
Sales Commission Summary:
There are many options a homeowner has when deciding to list a property. Some are better than others, but they may costs a pretty penny. Have you ever heard the phrase “You get what you pay for?”
The same is true in the Real Estate industry. If you want superior service and an agent that will give 100%, you have to pay more money. If you do not want much assistance and feel you can do it on your own, you pay less money. Whichever you decide, just be sure to ask what you get for your money.
The value of using a REALTOR®:
Many homeowners do not see the value in hiring an agent. If you are selling, it is important to have someone "representing you" who is familiar with the industry and will work hard to make sure the process runs smoothly. They have the tools, resources, knowledge, and negotiation skills to find you the best deal on the terms that you want. An agent makes sure you do not get taken advantage of or that you do not agree to anything you do not want or understand.
If you are buying a property, an agent can help you find properties that fit your criteria, negotiate on your behalf, and make sure you are getting a good deal. Best of all, a buyer’s agent does not cost you anything in most cases because the seller will pay their commission. Even though it is exciting to search online for houses you like, or drive around and find them, it is always useful to hire an agent to go with you and represent you.
With that said, not all agents are created equal. Marquis requires any affiliate agent holds a REALTOR® designation. It is common for people to refer to any licensed agent as a REALTOR®, however, there is a major difference. REALTORS® have additional education, as well as a strict code of ethics that must be followed. Out of approximately 40,000 licensed agents in Colorado, only about 25,000 hold a REALTOR® designation. This is important to distinguish between the two as working with a REALTOR® is highly recommended over just a licensed agent.
The Value of Using a Mortgage Broker:
Many people are unaware that there is a difference between a mortgage broker and a > mortgage banker. The differences between the two can affect you a great deal. Mortgage brokers are approved with multiple investors, allowing them to shop many different programs and find you the best program and rate for your particular needs.
In addition, mortgage brokers have access to wholesale rates offered from these investors, many of which are all banks that we all know. People often go to their local bank under the assumption that they will receive the best possible deal; however banks offer what is called retail rates. This is because it is a retail location and their overhead is much higher as they must pay salaries, lease a large space, etc.
Therefore, your rates at a bank are generally higher than if you went with a reasonably priced mortgage broker. Also, banks are extremely limited in the amount of programs they offer, while mortgage brokers are able to find niche products for any type of situation.
The Mortgage Transaction:
This can be the most stressful part about buying a house. Finding a house with your Real Estate Agent is exciting, but the Mortgage Transaction is what tells you how much you are going to pay each month for that house. As it is now, we are sure you receive numerous calls everyday about refinancing your home, or if you do not own a home yet, then you might not know what the process is like.
Usually you talk to at least three mortgage brokers, each of them saying why their loans and rates are the best. Each will compete with one another to offer the best terms. This sounds great right, three brokers competing for your business? There are even entire companies built on this concept.
However, in the "mortgage maze," there are numerous ways to make money and hide fees, which we feel is a major issue. The truth is that in most cases, each of these brokers has access to the same lenders and the same programs. Here is a list of typical fees you might see in a loan transaction.
Origination Fee |
1% of loan amount |
Processing Fee |
$350 |
Appraisal Fee |
$350 |
Lender Fees |
$700 |
Title Insurance |
$700 |
Closing Fee |
$200 |
Recording Fee |
$100 |
Miscellaneous |
$100 |
TOTAL |
$2,500 + 1% Origination Fee |
Let’s talk about an origination fee for a moment. This is how a broker makes part of their money as nobody works for free. Sure you have heard brokers say they will not charge an origination fee, but if they want to make money, it is hidden someplace else.
An origination fee is usually 1% of the loan amount which means on a $300,000 loan, the origination fee is $3,000. One thing to make a note of is a Mortgage Broker Fee, which is virtually the same thing. If a broker is charging you both, ask for an explanation or walk away, he/she might be too greedy as they are likely also making money on the Yield Spread Premium.
Yield Spread Premium is another way brokers make money. However, this is not paid by you directly, in fact, many times you do not even know about it. YSP is a premium paid by the lender to the broker for selling a higher rate. The higher the rate the broker can sell you, the more money the lender will pay them. Have you ever heard of a No Closing Costs Loan? They sound attractive and are great for someone who only plans to live in the home for less than 4 or 5 years. The reason is because in exchange for No Closing Costs, you must accept a higher rate.
Think about it, the broker still needs to pay the $2,500.00 in fees above, and earn a profit still. Most fair brokers want to earn 2% of the loan amount after all fees are paid. How do they pay your fees? They simply increase your rate so the lender pays them more money which they use to pay your fees. In order to make enough money in YSP to pay your costs and still make 2%, the rate will increase substantially.
As you can see, as with any purchase, one needs to consider quality and price. If you want better quality, it will cost more, but if you are concerned with price, you might have to accept lower quality.
Introducing the best of both worlds...
Marquis Equity Protection Program:
Engaging in any Real estate transaction can be very costly. It almost seems as if everyone wants their piece of the pie (your equity). Marquis Enterprises has partnered with some of the best REALTORS® and Mortgage Brokers and have provided them with a system to increase their volume and also earn additional income.
The services provided to our affiliates are free, but in return, we have pre-negotiated the following discounts on your behalf and have simplified the entire process. We are their number one client and that’s why they are willing to give our members discounts. Here are some of the benefits you will receive when you become a Marquis Member:
- 30%-40% off of real estate sales commissions while still receiving true full service
- 1% rebate on new purchase price (if state allows)
- Offer to pay buyer’s closing costs incentive WITHOUT actually paying with your money
- Never pay closing costs again while still receiving lowest rate
- Minimal YSP markup to pay closing costs
- Hundreds of lenders and thousands of mortgage programs available
- Simple and Stress free experience
- Experienced, licensed, insured, and pre-screened REALTORS® and Mortgage Brokers
Here is a sample scenario:
|
||
Projected Sales Price (current home) |
$250,000 |
|
Estimated Purchase Price (new home) |
$350,000 |
|
Loan Amount (purchase. or refinance) |
$300,000 |
|
|
Non-Members |
Members Selling and |
|
|
Buying |
Sellers Agent Commission |
$8,000 |
$2,500 |
|
|
|
Buyers Agent Commission |
$7,000 |
$7,000 |
|
|
|
Buyer's Closing Costs Incentive |
$4,700 |
$0 |
|
|
|
Est. Closing Costs (new home or refinance) |
$5,400 |
$0 |
|
|
|
Rebate from Purchase |
$0 |
$3,500 |
|
|
|
Total Costs |
$25,100 |
$6,000 |
|
|
|
Total Savings |
$0 |
$19,100 |
|
|
|
This means if you sell your home and buy a new one, on this transaction alone you will save almost $20,000 in commissions and fees. Notice the huge difference in what you are paying your listing agent.
Also, through our network of Mortgage Brokers, you can offer the NO CLOSING COSTS incentive without having to pay for it. Our brokers have agreed that for anybody purchasing your home, they will not charge any closing costs and still give the best rates to your buyers. Also, if they choose to use one of our Mortgage Brokers, you will have confidence they are ready and able buyers.
In addition, our REALTORS® will give you a 1% rebate of the purchase price whenever you buy a new home. And of course, you will not pay any closing costs on your new purchase and will still receive superior rates. This means that rather then ask for 3%-6% in closing costs from the sellers, you can now use that money for carpet, paint, etc, or even just deduction from the price.
How do we do this?
Our network of REALTORS® and Mortgage Brokers has all agreed to provide our clients with these discounts. Our REALTORS® will charge only 3.8% on a true full service listing if you are buying another home using them as your agent. This means that 2.8% is being paid to the buyer’s agent and your agent makes 1% minus marketing expenses.
There are a couple reasons they are willing to do this. If you are buying another home, they are receiving a commission on 2 transactions. They also realize the Marquis value as we are their number one client. We send them more clients and make them more money than anyone out there. On top of providing these agents free leads, free marketing, free advertising, and doing all their legwork, Marquis also pays them an additional income from our Profit Sharing Program.
Here is an example of what an agent might make on a transaction with one of our clients:
REALTOR® Commissions |
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|
|
Commission |
|
Sales Price |
$250,000 |
$2,500 |
|
|
|
|
|
Marketing Expenses |
|
$1,000 |
|
|
|
|
|
Purchase Price |
$350,000 |
$9,800 |
|
|
|
|
|
Rebate from Purchase |
|
$3,500 |
|
|
|
|
|
Total Compensation |
|
$7,800 |
|
REALTOR® Commissions |
|||
|
|
Commission |
|
Sales Price |
$250,000 |
$5,000 |
|
|
|
|
|
Marketing Expenses |
|
$1,000 |
|
|
|
|
|
Total Compensation |
|
$4,000 |
|
This shows that the agent is still earning a decent amount of money on a deal they would not have had if it wasn’t for our program. This also assumes they spend $1000 to market your property, which is more than enough in most cases.
The Real Estate portion is fairly simple to understand, but now let’s talk about the mortgage transaction as it is a bit more complex.
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|
Non-Members |
Non-Members |
Members |
Loan Amount |
$300,000 |
$300,000 |
$300,000 |
|
|
|
|
Origination Fee |
$3,000 |
$0 |
$0 |
|
|
|
|
Other Closing Costs |
$2,500 |
$0 |
$0 |
|
|
|
|
Total Closing Costs |
$5,500 |
$0 |
$0 |
|
|
|
|
Rate |
6.250% |
6.625% |
6.250% |
Payment |
$1,847 |
$1,921 |
$1,847 |
YSP% |
1.33 |
2.6 |
1.33 |
Yield Spread to Broker |
$4,000 |
$7,875 |
$4,000 |
Closing Costs Credit |
$0 |
$2,500 |
$2,000 |
Total Cost % |
3.16 |
1.9 |
0.67 |
|
|
|
|
Total Broker Compensation |
$7,000 |
$5,375 |
$2,000 |
|
|
|
|
The left hand column illustrates the costs incurred by using a fair broker if you are not a Marquis Member. There is a 1% origination fee plus the additional $2,500 in costs. This means you are spending a total of $5,500. Now look at the rate, and then the YSP%. Remember, a broker is being fair if he makes close to 2%. With the 1% origination fee, this means the broker must charge a rate that pays an additional 1% or so in YSP% from the lender. In this case the rate is 6.25%. The broker in this case made $7,000.
Now focus on the middle column. This illustrates what a broker will do if you want a NO CLOSING COSTS loan. Notice the rate, it is higher. This is because the broker must make more in YSP% to cover your costs and still profit approximately 2%. In this case, the broker made an additional $7,875 from the lender, but used $2,500 to pay your costs. The broker still made almost $6,000.
Now look at what happens for a Marquis Member. There are NO CLOSING COSTS, and the rate is still very low. This is because we have fixed the amount of money the broker can make on the loan. Any of our Mortgage Brokers will make the same amount of money no matter what type of loan they give you. They have no reason to try and sell you on one loan over another because it pays them more in YSP%. This is common today as some loans pay a lot more than others. But we have taken that variable out of the process, and made it all about your pocket, not the broker’s.
Each broker is instructed to give you options and let you choose. They make the same amount of money no matter what. For our members, they act as an advisor rather than a salesman. Our network of brokers simply must make less money and put your needs ahead of their own. They are in a contractual agreement with Marquis to do so when we provide them our clients.
Also, look at the closing costs credit. It is slightly lower because Marquis has partnered with other companies who have agreed to provide our Mortgage Brokers with discounted fees such as appraisal fees, processing fees, etc. Our brokers are willing to only make $2,000 on a loan because they receive several per month, and our members do not need to shop around, although some might.
But because of our agreements, our brokers are confident that even if you shop around, nobody will offer what we can. Some might try and match it if you tell them what we are offering, however, you then take the chance of a “bait and switch.”
By using one of our Mortgage Brokers, you have confidence there will be no hidden costs and that your rate is extremely fair, as Marquis is monitoring the mortgage broker’s actions. If the broker is not abiding by our contract, then the broker has breached our contract and hefty consequences will take place.
Here is a diagram of how our company is structured:
This is to show the relationships between you, our affiliates, and Marquis Enterprises. We are a third party and represent you while still providing our affiliates with incentives.
When you pay for a membership, we take a portion and put it into our Profit Sharing Program and distribute that money to our affiliates. They make an additional income NOW which is another reason they are willing to give such substantial discounts. The bottom line is Marquis is their number one client.
This is why they have agreed to the terms and conditions set forth in our contractual agreements, which they ultimately will be held accountable for by Marquis when you engage in any transaction. We are a third party and receive no referral fees from these affiliates. Our purpose is to save you money, and make our affiliates money by being their best and most effective lead generation source.
Summary of Benefits:
- 3.8% sales commissions with true full service (if buying another property)
- 4.8% sales commissions with true full service (if not buying another property)
- 1% of sales price rebate on any purchase (if state allows)
- No Closing Costs for life
- Best rates and overall mortgage cost
- Access to hundreds of lenders and thousands of programs
- Minimal YSP markup
- Experienced, Pre-screened REALTORS® and Mortgage Brokers
- Stress Free experience
- Protect your hard earned equity
- 60%-90% savings
- Membership could be worth hundreds of thousands and possibly even over a half million dollars (see below)
Potential Lifetime Savings:
Non Marquis Equity Protection Members |
||||||
|
Age 25 |
Age 32 |
Age 39 |
Age 46 |
Age 53 |
Lifetime Total |
|
Property 1 |
Property 2 |
Property 3 |
Property 4 |
Property 5 |
|
Purchase Price |
$200,000 |
$350,000 |
$500,000 |
$650,000 |
$600,000 |
|
Sales Price(3% appreciation/yr) |
$245,975 |
$430,456 |
$614,937 |
$799,418 |
|
|
|
|
|
|
|
|
|
Closing Costs to Buy Home |
$4,000 |
$5,500 |
$7,000 |
$8,500 |
$8,000 |
$33,000 |
Closing Costs to Refinance |
$4,000 |
$5,500 |
$7,000 |
$8,500 |
$8,000 |
$33,000 |
Listing Agent Sales Commission |
$7,871 |
$13,775 |
$19,678 |
$25,581 |
$0 |
$66,905 |
Buyer's Agent Sales Commission |
$6,887 |
$12,053 |
$17,218 |
$22,384 |
$0 |
$58,542 |
Buyer's Closing Costs |
$4,460 |
$6,305 |
$8,149 |
$9,994 |
$0 |
$28,908 |
Total Costs |
$27,218 |
$43,132 |
$59,046 |
$74,959 |
$16,000 |
$220,355 |
Marquis Equity Protection Members |
||||||
|
Age 25 |
Age 32 |
Age 39 |
Age 46 |
Age 53 |
|