A Deal Too Good to be True...
Many home buyers and sellers believe the "standard" commission is 6% when selling a home. The truth is, there is no "standard" or "fixed" fee in the industry. The Sherman Anti-Trust Act is a federal law that prohibits activities that are considered to be in restraint of free trade, and forbids any type of price fixing in any industry. Translation...there is no "standard" commission rate in the real estate industry.
After working for a large franchise broker for several years and being told that I was worth 6% and I should not discount my fees for anyone, I finally had an epiphany. In other words, I finally came to the realization that my "worthiness" of the increased commission was making my broker very wealthy while I continued to be the one doing all the heavy lifting and could do nothing to help my customers and nothing to create more competition in the industry. So, I left and opened my own brokerage. My wife and I regularly list homes and sell them at 4% broker commission.
Our experience was simple. When we worked for the franchise broker, we paid a franchise fee, a broker fee, a team leader fee, our own errors and omissions insurance, a monthly desk fee, our own business expenses including advertising, and all of the expenses associated with marketing our listings. If you are a seller, imagine how little is left after giving all of those fees away to the broker. Is it any wonder we were continually told we were "worth" 6% and not to lower the commission?
As an independent Broker, we no longer have all of those fees! The result is that we can pass all of those savings on to our customers! We list and sell at 4% real estate commission. And for buyers, as long as we can get approval from your lender, we rebate up to 1% of the purchase price towards your closing costs and prepaid expenses (every transaction is different and requires your lender approval).
We have been very blessed this year. We have personally closed over $13.5 million in sales with $2 million currently under contract.
We are perfectly positioned to take on your listings. We publish to the multiple listing service, our company website, facebook, syndicated internet advertising which pushes your listing to Realtor.com, Homes.com, Trulia.com, Zillow.com, and virtually every other major real estate search engine, and we provide a unique property website.
Our business model allows you to price your home more appropriately to get it sold in the time frame you desire and net the most money possible. We are pleased we have been able to help so many buyers and sellers.
We also pay our realtors 100% commissions so they have the exact same opportunity to negotiate their commissions with their customers as they see appropriate to satisfy their customer's needs.