Baron Briefs » hedgelet http://blog.realtybaron.com Real estate news and commentary from RealtyBaron.com Fri, 25 Mar 2011 12:32:54 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 The World’s First Risk-Free Listing http://blog.realtybaron.com/2008/08/28/the-worlds-first-risk-free-listing/ http://blog.realtybaron.com/2008/08/28/the-worlds-first-risk-free-listing/#comments Thu, 28 Aug 2008 17:47:21 +0000 realtybaron http://blog.realtybaron.com/2008/08/28/the-worlds-first-risk-free-listing/ 3605 hammerkop drive

Earlier this morning, I approved a ListingHedge™ for 3605 HAMMERKOP DRIVE in NORTH LAS VEGAS, NV making it the world’s first risk-free listing ever. OK, not entirely true since a ListingHedge™ is purchased and settled with BaronBucks during the beta period, but still a monumental moment. Here’s the breakdown:

If home sells….

+ $5,423 Est. Commission Side
- $2,000 Expenses
- $458 Cost of Hedge
= $2,965 Net Earning

If listing expires…

+ $0 Est. Commission Side
- $2,000 Expenses
- $458 Cost of Hedge
+ $5,500 Hedge Payout
= $3,042 Net Earnings

]]> http://blog.realtybaron.com/2008/08/28/the-worlds-first-risk-free-listing/feed/ 2 Introducing the ListingHedge(TM) http://blog.realtybaron.com/2008/08/24/introducing-the-listinghedgetm/ http://blog.realtybaron.com/2008/08/24/introducing-the-listinghedgetm/#comments Sun, 24 Aug 2008 21:55:23 +0000 realtybaron http://blog.realtybaron.com/2008/08/24/introducing-the-listinghedgetm/ Today is the public beta launch of RealtyBaron.com’s latest and greatest, a risk management product for real estate agents called ListingHedge™. As the name implies, a ListingHedge™ allows an agent to hedge a listing. Put simply, a ListingHedge™ is used to reduce the financial risk agents accept when spending time and money upfront in exchange for a commission after a home sells. Traditionally, agents do not recover expenditures from an unsold listing. With a ListingHedge™ in place, however, an agent is still paid for work that does not result in a sales commission. The illustration below compares the traditional risk model to this new hedged risk model:

Hedged Risk Model

During the beta period, a ListingHedge™ is purchased and settled with BaronBucks™. Any broker or agent with a RealtyBaron.com account is automatically credited with $5,000 BaronBucks™ that can be used to purchase a ListingHedge™ for each listing the broker or agent is marketing.

After the beta period ends and the service officially launches, a ListingHedge™ will be purchased and settled with real money. BaronBucks™ accumulated by agents during the beta period will be converted to equity shares in (pre-IPO?) RealtyBaron, Inc.

To get started, follow these steps:

  1. Log in or sign up at http://www.realtybaron.com/agent
  2. Complete your AgentRank™
  3. Upload your current listings
  4. Hedge your current listings

Question, comments, or concerns? Add a reply below and I’ll respond.

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