Seller Commission Savings

 

 

Do you think Realtors charge too much? I do. I provide all the same services as a Realtor and I do so for a lot less money. A listing broker will likely charge you at least 6% – that’s $33,700 (includes their $700 junk fee) on a $550,000 home. My total costs if there is no buyer agent will likely be around $8,700 (including out of pocket costs for appraiser measuring service, photography and abstracting). With Realtors, if there is no buyer they will charge you the full $33,000.   

 

Sale Price of Home: $550,000

 

My Fee: $8,700 (includes out of pocket appraiser measuring service, professional photography, and abstracting)

 

 

Buyer Broker is Paid 2.5%: $13,750

My Fee: $8,700

 

I have had 2 transactions in which my clients saved over $100,000 in commissions each.

 

I don’t have to split my fee with agents. I own the brokerage firm. And yes, I know how to market a home. And yes, I play nice with Realtors. I provide more and better service than Realtors (and I will never subject you to dual agency), and I have all the same tools that they do (auto scheduling, comp analysis, and so much more).

 

I detest Realtor open houses because they exploit sellers. Open houses do not sell homes – the statistics are abominable. They are nothing more than a platform for Realtors to engage in self-promotion to find buyers and sellers of other homes.

 

Now consider client-hosted open houses in which you, the seller, is looking for unrepresented buyers. If you find an unrepresented buyer (and my clients find a lot of them), you could save $24,000 on a $550,000 home. We don’t put signs all over the neighborhood. Instead, we strictly advertise open houses on the internet to buyers who are seriously looking to buy a home. If you find an unrepresented buyer (any buyer who has not signed a buyer representation agreement), you send them to me, and I refer them to a real estate attorney. I will do all the drafting and put the entire transaction together as your attorney. And that’s how you can save

 

Brokerage firms have a huge financial incentive to limit the marketing of your house to increase the chances of collecting a double fee. “Office Exclusive” or “Private Listing Phase” listings are pocket listings and are a trap that severely impairs your market exposure and increases the chances the Realtor will receive a double fee. Run away fast if your Realtor tries to sell you on this exclusive “service.” 

 

*Plus, whatever you want to pay buyer brokers. Plus typical out of pocket costs would include $150 to have house professionally measured by an appraiser (few Realtors know how to measure a house and often advertise homes with incorrect square footage), $50 in abstracting (Realtors are not licensed to examine title – I am and I don’t charge extra for examining the abstracting work), $300+ for custom professional photography, and staging if you choose to hire a stager.