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Say Goodbye to Paying 6% Commissions!!
How can you offer Full Service for Only 3.5% - It sounds to Good To Be True!! I am constantly asked, "How can you only charge 3.5 commission for Full Services, when other Full Service Brokers charge as much as 6 or 7 percent. What is the Catch"There is no catch. We've constructed our whole business model around passing savings back to you. That's why Dollarsback Reality is the smart choice for anyone looking to sell their home. We not only provide full service for only 3.5%, but we do not charge you hundreds of dollars in administrative fees like many of the other brokers. So what's this business model all about? The beauty of our business model is three folds: The Multiple Listing Service (MLS) is the National Association of Realtors®
(NAR) computerized list of homes currently for sale. This is an exclusive tool,
only available to the 700,000 members of the NAR. The MLS is the primary tool
used by Realtors® to find homes for their buyers. Realtors® search the MLS daily
to find potential matches for their buyers, thus when new listings are entered,
they are immediately evaluated by thousands of Realtors® with prospective
buyers, making your house rapidly popular. The MLS provides the biggest marketing advantage in selling homes. This kind
of exposure to buyers is not available anywhere else. You maximize your chances
of selling your property quickly and at a better price when it is listed in the
MLS. In order to maximize your on-line exposure, DollarsBack Realty.com will list your property in multiple Websites and we will Showcase your home at the Realtor.com website. Realtor.com is the number one website used by buyers to search for homes. As a Showcased home, your home will stand out over the other listings; thus catching the buyer’s eye and driving them to your detailed listing. And as a Showcased home, I will add a custom description to promote the best features of your home. Below is a PDF document that provides details about the online marketing that we will do for your home. You will not get this level of online marketing even when you pay a 3% listing fee. Click Here to download information on our On-Line Marketing. The lockbox is a metal container that stores your house key and can only be opened with the combination or a special electronic key depending on the type of lockbox. Normally the lockbox is hung on the front door knob. Realtors® show many homes within a very short period of time and depend on quick access. A Lockbox will increase the accessibility of your house and ability for an agent to show your house, which increases your chances of getting more offers. Also many Realtors® won't even call a house that does not have a lockbox. If the hassle factor is too high, they instead will focus on the other 10 houses they can show easily and immediately. Comparative Market Analysis (CMA)
Regardless of the commission rate, there are usually at least four parties involved in typical transaction. First there is the listing broker and the listing agent who represents that broker. In a further effort to make the property sell quickly, the Listing Broker will normally Multiple List (MLS) your home and offer compensation to a Cooperating Broker also referred to as the Selling Broker. Finally, there is the selling agent who works with the buyer and is referred to as the Selling Agent. When the Selling Agent represents the Buyer then they are referred to as a Buyer’s Agent. Also, it is not uncommon to have to pay referral fees and franchise fees. Below is a diagram showing the typical commission split.
When you decide to sell your home make sure you know how much commission is being offered as the Compensation to the Selling Broker. I have seen Listing Brokers Advertise a 5% Commission, whereby they take a 3% Listing Broker Fee and offer only a 2% Cooperating Broker Fee. I would advice the seller against this type of commission split. DollarsBack Realty.com’s Listing Fee is only 1.5%. We then allow our client to choose whether they want to pay a 2.5% or 3.0% Cooperating Broker Commission. My Best Advice to Sellers is “Don't skimp on the Selling Agent's commissions”. These are the agents that are going to decide whether or not to bring their client to view your home and you want to give them as much an incentive to show your home as possible. I have heard seller’s say "well all they did is bring this client to my home and sign some papers and they want me to give them $6,000? What a rip off!" That 6,000 doesn't go into the Selling Agent's pockets. For example, suppose you have a $200,000 Townhouse to sell and you agree to pay 3 percent compensation to a Cooperating Broker. In addition to the four way commission split shown above, many times that agent had to pay a 30% refer fee to get that client (leaving $4,200) . THEN the broker (company they are under) takes as much as 50% for their cut (Leaving $2,100), Uncle Sam will take another 25-35% (Leaving around $1,500) and lets not forget about the several thousands of dollars in overhead that is required to be a licensed Realtor. When an agent shows a property to a potential buyer, one thing they generally look at is how much real estate commission is being offered. All other things being equal, Agents typically will show homes offering 3% before the ones offering 2.5%. If your home is offering only 2.5% to the other agents, it may get fewer showings. Your property will therefore be exposed to fewer potential buyers. As a result; you will be helping other seller's get their homes sold first. Bottom Line - I have seen identical house one with a 3% commission and one with a lower commission and typically the Seller offering a 3% will get many more showing and sell their home faster and for more money. |
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Maryland Discount Real Estate Services Provided in the Following Areas:
Harford County, Howard County, Baltimore County, Montgomery County, Cecil County, Prince Georges County, Charles County, Frederick County.
Copyright © 2005 DollarsBack Realty.com - Your Maryland Real Estate Broker.
Baltimore, Bel Air, Abingdon, Forrest Hill, Aberdeen , Fallston , White Marsh, Perry Hall, Parkville, Towson, Columbia, Rockville, Annapolis, Joppa, Cockeysville, Davidsonville, Kingsville, Jarresttsville, Ellicott City.