How we get Paid
we work with sellers:
To motivate other agents to show your home to their buyers, you need to offer at least 3% for their half. If you really want to motivate more agents to show your home you might consider 4%. Our part is always the same. We earn a 1.5% commission to do all the marketing aspects for the sale of your home. Another 1.5% is earned by us doing all the tasks involved from negotiating a contract through to the final closing. So it usually works out to be us earning 3% and the buyers agent earning 3% for a total cost to you of 6%.
You can also save money by using our referral dollars. You earn $500 in "referral dollars" every time you refer us to someone you care about and it results in a closed sale. It's like frequent flyer miles. You can use them yourself to reduce any future commissions with us or you can give them to someone else that does business with us. You can also have us donate them to your favorite charity. You decide. Also, you can "refer" yourself to us and earn referral dollars too. If you sell your home with us and then use us to help you buy a home, we'll reduce our commission by $500.
Speaking of referrals, that is the second way that we get paid. As we go through the process of finding the best offer for your home, and you grow to trust us, we are counting on you to tell others about our services. If we deliver beyond your expectations, the best compensation you can give us is other great clients like yourself.
When we work with buyers:
First, we get paid by the seller for showing their home, writing the contract, doing the paperwork to remove all conditions and organizing the team to close the transaction. We only receive whatever the listing agent is offering up to a maximum of 3%. Any amount above this or any agent bonuses we credit to you, our buyer, at closing. This way you can be assured that there are absolutely no ulterior motives for us showing you any particular home. If a seller is offering agents a trip to Hawaii, we let you go, not us.
Again, the second way we get paid is through your referrals. As we go through the process of finding your dream home, and you grow to trust us, we are counting on you to tell others about our services. But remember, we only expect referrals if you trust us and are comfortable referring us. This is what motivates us to provide service beyond your expectations.
What if we find a "for sale by owner" and they aren't offering any commissions? In that rare case, if you want us to continue helping you through the process all the way through closing we charge you a 1.5% commission. This can usually be worked into the final sales price, exactly how the commission is handled on any "listed" property.
What about Discount Services?
Please check out other companies to make sure you are getting the best prices. But be sure you aren't taken in by any misleading advertisements. Many of those ads you hear about selling your home for only a couple hundred dollars are very misleading. Usually the bargain rate advertised gets you a sign, a listing in the Metro Listing Service,(not the First Multiple Listing Service) usually a picture on their web site and maybe a flyer. And that is only if the buyer isn't using an agent to represent them. Most likely the buyer will be using an agent and the agent will require a 3% commission.
There are some discount brokers who will charge only 4.5% total commission. They are the taxi cab services of the business. They'll probably do an adequate job but I wouldn't expect a lot. They'll usually supply you with the 4 P's(Put a sign in the yard Put on a lockbox, Put it in the MLS and Pray). If that's all you are interested in then that might be the way to go. Unfortunately, many "full service" Realtors don't do much more than the 4 P's but charge a full 7% commission. Know what you are buying.
The bottom line is you get what you pay for. We can provide limo quality service for about the same amount as taxi quality service because of the referrals we get from our clients. Instead of spending time and money looking for our next fare, we can provide a limo experience that by itself will attract future referrals and repeat business. It's a simple philosophy and makes our work a joy.
Give us a call to set up a meeting with us. We're sure you'll see the value in using us as your consultants. 404-8216-0472