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Flat Fee vs. Traditional Real Estate Commission

It’s a fact that commissions are common in any sales industry. If you’ve ever sold a home you know the standard compensation for real estate professionals is based on a percentage of the property’s sale value. But is that the most reasonable way for the industry to work? Might there be a better way? Let’s take a moment to look at the differences between the flat fee vs. traditional real estate commission business model.

Commissions are typically in place to attract persuasive sales people, giving them a stake in what they do for you. Car dealerships are the perfect example…they want to move as much inventory as possible so they use a commission pay structure so their sales staff will push customers to buy quickly and spend more. However, the majority of service industries offer a flat fee based on expertise, time, and material costs involved.

If you see a real estate agent as an advisor, you expect to buy or sell a home based on a fair and reasonable market rate with the agent’s help. Am I right? Consumers rely on their agents to assist them through the cumbersome process. They see their real estate agent the same way they’d see a financial advisor or counselor, providing a service for a fee based on the work performed. Keeping that in mind, our ListWell brokers have deduced that real estate commissions simply don’t make sense. More than that, we’re proud to say that our flat fee real estate model is putting more money back into the consumers’ pocket.

iStock_000001420189_SmallTo drive our point home, we feel that the price of a home is immaterial to the agent’s job. Our brokers extend an exemplary level of service that includes everything from property research and premium marketing of your home, to price and terms negotiation, inspection and closing. The primary thing that sets us apart from a traditional brokerage is that instead of forking over a huge commission payment of 5-6%, we simply charge a low flat fee. No matter if your property is a 2 bedroom condo, or an elegant estate home showcase, our service is the same and our commission is the same. We don’t think you should have to pay more just because your house is worth more.  In other words, it does not take five times as much effort to sell a $1 million home as it does a $400,000 home.

Any homeowner who is still paying a percentage of a home’s value in order to buy or sell should take a hard look at the services they are receiving and ask themselves what similar services would normally cost in any other industry. How much should an agent earn to represent a buyer or seller in today’s market then the industry is so rich with technology and information? At ListWell, we know the answer and we’d love to share our expertise with you.

The Savings Are Real.

Home sellers in Orange County are saving THOUSANDS of dollars with flat fee real estate services vs. traditional 5 – 6% commission fees. Its true. The savings are real. ListWell’s full service flat fee brokers actually care about your bottom line. Just think…what will you do with the money you save?

Barclay SOLD

 

SOLD Del Prado 1

 

SJC (3)

 

Irvine Condo Sold

 

Irvine Sold

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ListWell Flat Fee Video – 2016