Not too long ago there was a real estate company in San Diego called IPay1. They focused on sellers by offering a one percent commission fee to list and sell their home. Sellers who fully participated in the process; held open houses, put signs out, talked with sellers and worked to sell their home could sell their home for only 1 percent of the sales price. The company put their name on the Sports Arena and business was booming from 2004 to 2006. The market changed and they went out of business. Sellers still want to save money on real estate commission fees but often forget the saying, “You get what you pay for”. Here’s how the sales commission breaks down -
If a house sales for $400,000 dollars and the commission is 6% ( the tradional amount) the fee is $24,000.
The $24,000 is split between the listing broker and the selling broker. Each gets $12,000. If the listing and selling broker are the same then they keep the whole amount.
The $12,000 is then split between the broker and the agent who sold the house. Depending on the agents commission structure. Typically it is around 60%. The broker keeps $4800 and the agent gets $7200. That’s the math and the break down but you might be thinking that’s a lot of money and wondering what you got.
The Realtor pays for all advertising and marketing of the house; flyers, newspaper ads, open houses ( including snacks), signs, internet ads; some are free, some require a membership.
The Realtor pays for virtual tours, MLS Fees where the house should be listed in order to receive maximum exposure and pictures.
But your not just paying for marketing and advertising because if you don’t just need a good ad to sell your home.
When I work with sellers I work every day to give their homes the maximum exposure possible. Neighborhood flyers, Internet marketing, broker caravans and open houses. I work with other Realtors, promoting your home and it’s benefits. I scout the competition for insights into the market. When an offer is received I verify buying power. Show me the money. Negotiating, working with the buyers Realtor, the lender, the title and escrow companies. I am constantly communicating and working for you to serve your best interests.
Thinking of selling your home and want to know it’s market value? All I need is an address and an email and I can give you a ball park number. If I can see the house I can let you know what needs to be done and some smart staging strategies.
For all your real estate questions and needs contact me
Janet McCarthy
858-243-5719
www.SanDiegoForeclosureGuide.com
