1% LISTING FEE TO SELL YOUR HOME

Why charge 1% commission when everyone else charges 5-6%?

The Reality of Real Estate Commissions

In 1998, I embarked on my career at one of the nation’s largest residential real estate brokerage firms in California. I was astounded by the industry's standard practice of charging high commissions, typically ranging from 6% to 7%, sometimes even as high as 10%. This model was sustained by the lack of centralized real estate data-sharing platforms, allowing brokerages to monopolize crucial information and stifle competition.

After three years, I resolved to establish my own independent real estate brokerage firm. My mission was to offer tailored, cost-effective services for home sellers with the primary goal of maximizing clients' net proceeds at the close of escrow.

Restructuring the Business Model

I restructured the business model to better align with the evolving real estate landscape. By reducing traditional overhead costs associated with managing a large brokerage and agent teams, I could pass on significant cost savings directly to clients.

I introduced a 1% listing commission. Rather than adhering to the typical total commission rate of 5% to 7%, which is split between the Listing Broker and the Selling Broker, I eliminated the need for listing agents, who would require a 1.5% commission. Instead, I hired an Escrow Coordinator for a flat fee of $500 per transaction to handle the back-end paperwork.

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Streamlining Processes for Efficiency
One of the most significant challenges for a Real Estate Broker is the high turnover rate of agents, with over 90% not lasting beyond two years. This constant turnover necessitates ongoing training for new agents, who often view backend paperwork as a tedious chore.
To address this, I streamlined the process and created a client-centric approach to real estate transactions. By focusing on personally delivering expert service, I eliminated the need to pay the listing agent's 1.5% commission, effectively returning this savings to the home seller at the close of escrow. Consequently, I maintained the same workload per transaction without the stress and overhead of managing and motivating listing agents who typically lack a business degree.

Enhancing Professionalism and Client Satisfaction
By employing a Professional Transaction Coordinator, a specialist not involved in sales, I gained more control and confidence in managing transactions. This higher level of professionalism and streamlined process enabled me to close nearly every listing successfully. Sellers, delighted with the swift closing and significant commission savings, often refer friends and family to me, leading to one to four additional referrals per transaction.

Conclusion
The result has been a win-win situation where clients benefit from increased proceeds from their home sales. This shift has enabled me to provide personalized attention and expertise, delivering substantial savings and fostering high-quality referrals. Remarkably, I have maintained consistent earnings across transactions, comparable to what I was making at the large retail brokerage firm, while enhancing client satisfaction and loyalty.

Negotiable by Law

In California, real estate commissions are legally negotiable. However, many Realtors® fail to disclose this fact. Why? Brokers need to maximize their earnings to sustain their business operations.

The Broker’s Overhead

Retail brokers face substantial overhead costs, including:

Telephones
Insurance
Secretaries
Attorneys
Workers' compensation
Maintaining a professional appearance to retain and attract agents

These expenses necessitate higher commissions to keep their business afloat.

Regulatory Changes on the Horizon

According to The Wall Street Journal, the Federal Trade Commission has initiated an investigation into real estate commissions. This investigation aims to implement regulations that will make real estate commissions fairer for home sellers.

Conclusion

In this hot real estate market, it makes sense to minimize your selling expenses. By choosing an independent broker like me, you can save money, receive excellent service, and benefit from a straightforward, transparent commission structure.

Call Anthony for a FREE consultation! (650) 999-9848

Get My Free Home Appraisal

Saved $38,175

in commission.
SOLD for $2,545,000 - 4Bd/4.5Ba
1732 Terra Bella Ct., San Jose, CA

Saved $24,000

in commission.
SOLD for $1,600,000 -- 4Bd/2.5Ba
6692 Hampton Dr., San Jose, CA

Saved $22,650

in commission.
SOLD for $1.510,000 - 3Bd/2Ba
6226 Via De Adriana., San Jose, CA

Contact

Phone: (650) 999-9848
Email: [email protected]

Anthony J. Wiench, Broker
CA BRE #01145903
1% LISTING FEE TO SELL YOUR HOME

One Point Realty

Serving San Francisco Bay Area

Information deemed reliable but not guaranteed. Minimum Commission is $5,950. If your home is currently listed with another real estate broker this is not intended to solicit that listing. Restrictions may apply.