One of the reasons ordinary real estate sales commissions are so high is that they are designed to compensate multiple entities.
For example, lets assume you list your $600,000 home with Phyllis from ABC Realty (a fictional company I made up for this example). Her company charges you and every other home seller 6% of the sales price as commission. That’s $36,000, assuming a full price sale.
You scratch your head and look at Phyllis. She seems competent and she’s certainly nice . . . but $36,000? To sell your house in a market where average marketing time is less than 60 days? No wonder she’s driving a new S-Class Mercedes!
But don’t blame Phyllis. Only a portion of that $36,000 is going into her pocket. In fact, before it ever hits her company account HALF of it will be paid to the outside MLS broker and agent who bring the buyer. So now Phyllis and her broker are looking at $18,000 which they have to split. In that ordinary real estate world, agents usually get the largest share, so let’s give Phyllis 75%: $13,500. So now it will take Phyllis 8 sales to pay for her new Mercedes, not just 3.
That’s all fine and good, but you STILL paid $36,000 to sell your house!
And here’s the thing: while most real estate transactions involve two real estate companies and two agents, many DON’T. It is possible that Phyllis and her broker will find a buyer for the property and there will be no outside MLS broker and agent to compensate. But you know what you’re going to pay in that event? Yep: 6%, $36,000.
And, there is a chance – and you’d be surprised how often it happens – that you may find the buyer yourself. Maybe a neighbor has a relative who wants to live close by or someone at your office has always wanted to live there. You call Phyllis, she writes it up and you go to closing where you pay . . . $36,000 in sales commission.
It’s a one size fits all world. And 6% is 6% is 6%.
Real Estate Commissions don’t have to be crazy. There is an alternative. And it is Help-U-Sell Honolulu Properties. We are a full-service real estate company, and we charge differently and we charge less. We allow for the possibility that no outside MLS broker may be involved in the transaction as well as the possibility that you may find the buyer yourself. And in either of those cases, you pay less. Our fee schedule is logical and is not based on a one-size-fits-all, rubber-stamped percentage! Our track record is outstanding and, in fact, we beat our competitors in the MLS on every key metric. Our days on market is less and our listing price to selling price ratio is higher. It means a faster sale that produces more bottom line dollars for you, the seller. When you are ready to sell, call me and let me show you our outstanding program.
Help-U-Sell Honolulu Properties is a full service real estate company that provides exceptional service while charging less than ordinary Realtors. We’ve been successfully helping buyers and sellers all over Oahu for more than 12 years and we’d be delighted to help you achieve your housing dreams. Contact us at (808) 593-8811, or visit our website.