Save Thousands in Commissions While Paying the Highest Price Possible!
The Internet has spawned a host of new online real estate brokerages who offer commission rebates and discounts to homebuyers and homesellers. We at CleanOffer are big fans of innovation, efficiency and saving consumers money. A recent New York Times article entitled “The Last Stand of the 6-Percenters?” discussed discount brokerages at length.
Companies like Ziprealty and Redfin offer cool home search tools. Both companies give buyers and sellers they represent a nice commission rebate or discount at the close of escrow. Cool online tools and money back, that sounds pretty good doesn't it? The only problem is those consumers don’t get to select their own local real estate agent. Buying or selling a home is a people intensive business. A well-connected local agent can usually get a better net price (after all credits) than a less-connected agent. Plus, an experienced neighborhood expert knows the “skinny” on inspectors, other agents, etc. It's just the way it is.
As verified in side-by-side comparisons, only on CleanOffer do buyers and sellers get real-time search access to 100% of the listings in MLS. Plus we provide users with powerful email alerts of new or amended listings. Most importantly, clients get to pick their very own local expert agent to represent them without regard to brokerage affiliation.
The result is usually a safer transaction and a better net price than offered by a more hands-off online discount brokerage.
What do you think?
posted by Top Agent Network at 4:26 PM
3 Comments:
The benefits of CleanOffer's better search tools, and a local agent having the "skinny" on inspectors still do not equate to a $26K commission (3% of a $875k home).
An agent/broker spends, what, 40 hrs on avg working thru a Marin home sale? That's $650/hr. Hmmmm...
I understand that CleanOffer has an important relationship with traditional Realtors, but what traditional Realtors are asking no longer makes sense.
I agree that the industry is ripe for a change in its fee structure. Other service professionals such as attorneys or accountants typically get paid by the hour. The higher their hourly rate (hopefully corresponding with their skill/experience level) and the greater their hours, the more they earn.
In contrast, real estate agents are paid a fixed percentage of the home’s sales price. This amount paid is irrespective of how much time the agent spends on the transaction or what skill level they bring to the table. In some cases the agent does lots of work for no money in other cases they do little work for lots of money.
Actually most homes in Marin and SF are sold for a 5% commission. 2.5% to the sellers agent, 2.5% to the buyers agent. That money is then split with the Broker (ex Coldwell Banker).
$875k - 5% = $43,750
1/2 = $21,875
The selling agent, depending on their split with the broker, would receive around $18k. Newer agents would probaly receive around 11k.
Then subtract marketing costs from those numbers.
Commissions can be negotiated. A newer agent will most likely work for a little less. A seasoned agent will not. So you can get what you pay for, so to speak.
Some homes are fairly easy and clean, and don't need to be marketed as extensively as others. For those folks there's the Zip Realty's of the world, For Sale By Owners etc. Not to put them down in anyway.
But if you want to sell a million dollar plus home , and want it marketd properly, staged properly, shown properly, and most importantly, don't want to get sued when it's all over, there are the full service Brokers.
With all of those other options out there, by far most people still choose to go this way.
So if you want to, you can pay less, and you do have choices.
It's time to stop worrying about what Real Estate Agents make. They put in tons of hours and work darn hard for their money.
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