We don’t believe that a percentage-based model is the best model to use when selling Real Estate for other people. We believe that a pre-determined fee should be agreed upon between the Real Estate Agent and the person whose property is being sold.
It seems like no matter what company you work with, the seller always pays between 5-7% to sell their homes. The listing brokerage would be paid and then they would pay the Co-op amount to the buyer’s agent.
It also seems like this WAY of running a Real Estate company hasn’t’ really changed since at least the 1950’s even though the processes have become much more efficient.
In today’s world, when we entire a new listing with all the pictures and property information into the local MLS system, that property will literally be viewable around the globe within a couple of hours. There is a syndication process that all the websites like Zillow, Realtor.com, Redfin, etc … use to pull that information to their own websites. In all, there are hundreds of websites that each listing will be on within hrs. all done automatically.
We don’t have a MLS “book” anymore and we aren’t driving to each other’s offices to let agents know about our new house for sale! We put this information directly into potential buyers’ hands (literally) within seconds using the correct applications. Using the MLS is just one way we’ve become more efficient in the industry. We won’t even get into modern means of communicating, Docu-Sign, Smart Phones, or how we’re not driving buyers all over town as much anymore either. Point is … the world changed … but this way of doing business never has.
We don’t claim to have the best answer here… but technology has made our work easier, faster, and more efficient. We have the ability to handle multiple transactions all at the same time using a cell phone lot’s of the times!
On a average home we spend roughly 20 to 30 hrs. of overall work between having the home ready to go on the market and sitting at the closing table. That would include:
- The initial 1st visit to the home and any subsequent visits throughout the process.
- Creating all necessary documents to list the home
- Hiring and meeting with photographer
- Installing a sign and a lock-box
- Getting the property listed on the MLS with all relevant information and documentation
- Getting online showing services set up on the home
- Scheduling and Hosting a Open House
- Taking all calls
- Answering all emails
- Helping you negotiate and weigh your options
- Accepting an offer
- Working through the transaction with the other agent or with the buyers
- Coordinating inspections & appraisals
- And finally attending the closing.
There could be a few things we do for you that I didn’t mention on the list … THERE’S A LOT ACTUALLY! … But the point is, we can do most of the behind the scenes aspects of this work remotely and electronically. Some of it can be done on a cell phone! If you have the right processes in place, your work becomes very efficient.
SO let’s break this down into dollars and cents. We’re going to use a Home Price of $400,000.
Our Flat Rate to list a home is $3,500 + the buyer’s agent co-op fee … If we work 30 hrs. overall to have your home sold, we would earn $116 per hr. and pay out 3% to a buyer’s agent – A total of $15,500
If you decided to pay someone 6% to help you sell your home and they also worked 30 hrs. overall … Than you would be paying $400 per hour to the listing agent and 3% to the buyer’s agent … a total of $24,000.
Our Fee just save you $8,500 dollars! We’d love to see you use that extra money to put down on your next house!
Most likely your home is one of the biggest investments you’ve ever had. We want to see you do the absolute best you can on your investment and keep as much of your return as you can. We’re always looking for ways to improve our processes so we can help you more affectively!
So who is a good fit to work with us?
Investors & Builders … You know … people who are smart about selling real estate! OH, of course … and you! If you want to save on your sale, while working with a company that has your best interests in mind and is good at what we do, than we would love to hear from you!
- Loveland/Berthoud Association of REALTORS®
- Fort Collins Association of REALTORS®
- Colorado Association of REALTORS®
- National Association of REALTORS®