Less Real Estate Commission

In another article that I did recently, I talked about less real estate commission but from another point of view. The article was called Atlanta Discount Realtor. In that article I looked at the word discount and we found that Webster’s dictionary defines discount as “something that is less than retail value”. I pointed out that unless you are listing your home and paying an 8 or 10% commission, you are paying a discounted rate as 8 and 10% commissions are the highest rate of commission that I have ever heard of.

However, let’s talk about less real estate commission from a different point of view. Let’s talk about the math that has to happen for you to get you home sold. Most buyers in today’s market, or any other market for that matter, expect to negotiate the sales price that you are asking down to a lower price. That is regardless of whether that price is accepted in terms other than the sales price like the seller paying closing costs or giving discount points for the mortgage. So, with that being said, let me walk you through the average deal.

Most buyers offer 10% off the list price on the first round of negotiation. And, let’s say that you as the seller have agreed to pay the listing agent 6%. The first offer that you are looking at is now equal to 84% of your asking price. Is that acceptable? Most people say “NO”. Okay, so you negotiate further and you come to agreement at 95% net from your sales price. But then when you add the 6% commission that you agreed upon when listing it, you are now at 89% of your asking price. Most of the sellers that I talk to still say that that is way too much off the asking price. You see, the simple truth is that selling a home or condo is costing you way too much money these days.

89% of the asking price is 11% off retail value which was calculated based on a slight appreciation in most areas of Atlanta and represents 3 to 4 years worth of appreciation. Now remember, this whole time you have paid taxes and maintenance to be able to add the appreciation rate onto the home.

So, let’s talk about another way to sell your home. At Duffy Realty we sell homes for $500 and .0034 of the sales price at closing. This saves at least 2.5% of the commission on the listing side if your home is over or around 300K. If you home is around 800K and above, you are really saving money. The $500 is so low that it doesn’t move the percentage, so what you are really paying is the .0034 of the sales price when it sells, saving the seller even more money. And with Duffy Realty’s Buyer Magnet System, if a buyer comes to you, one that is not working with an agent, you have even more savings because you keep the commission you are offering out. And this is the 3% that most of my clients offer to the buyer’s agent in the MLS. So, in that case you save 5.5% of your equity. And you can drive a Mack truck through that spread, allowing you to accept more offers when they come in, quicker.

You have to view more details on Duffy Realty of Atlanta so that you can get the full scope of what I am talking about. It is important that you know how you can save at least 1.5 years of your equity just by being smarter about how you market your home.

The best part of my service is that you can experience the same results that my other 7,000 clients have experienced. These 7,000 clients have successfully sold their homes and saved thousands of dollars doing it. Quicker time on the market, more money in our seller’s pocket to realize more profits, or the ability to offer more concessions to the buyer or dangle more commission to buyer’s agents is what makes the deal work.

Discount Atlanta Realtor

What is a Discount Realtor?

I hope that everyone knows what a Realtor is, but in case you are not familiar, a Realtor is an agent who pays for a member designation from a club if you will of agents and brokers who are sworn to abide by a certain code of ethics. Any real estate agent and broker can be a member and most agencies encourage such.

I chose this topic of discount Atlanta realtor based on search terms that the public uses when searching to employ an agent to sell their home. But I am curious about how this term came about.

I have found that most of the public believes that a Realtor is every agent and every agent is a Realtor. Almost as if the designation of Realtor is the title given to anyone who passes their real estate license. I know the public is confused because I have asked them and I have never been asked if I am a Realtor.

But the bigger term that I find interesting is the word “discount”. What is discount? Webster’s dictionary defines it as: an amount deducted from the usual list price. Here is my point. Real estate commissions are not standard. In fact, fixed listing commissions are illegal. So, if discount means deduction from usual list price, i.e. commission price, and the term usual discount is not even legally possible, then the word discount can’t be applies in real estate.

So, I believe what the public is looking for is someone who is flexible in their commission or someone who is offering a commission plan that suits what the seller thinks the commission should be? And the only broker and their agents that would not fit in the category of discount broker or discount agent would be the broker and their agents that charges the highest commission ever heard of and paid by a client. What is that? 8, 10 or 12% listing commission. Once again, since there is no standard pricing, no one knows what that price would be. I have heard of some of those being quoted, so really anything less than those lofty prices is established as and should be considered a “discount”. So that really makes virtually every agent a discount agent.

Now, no where in Webster’s definitions of “discount” does it say that you get less service than what is provided to those who pay the highest price. Nor does it say that you get less of a product, it just says that “discount” means that you pay less than usual price.

I think that before we confuse the public anymore with words that don’t mean what we mean them to say, we had better get some new words that mean what we say.