Scenario 1 - Sell it through One Percent Realty for $9,950 for a $900,000 home, with all the services and exposure that you would receive from the common higher commission companies but at a low commission rate. This $9,950 fee also includes payment to the buyer’s agent (usually $4,500). One Percent agents do open houses, handle the showings including showing the property to Buyers, negotiations, and paperwork that you would expect from any full-service real estate brokerage. In short, the services and exposure are the same as you would get from the 7%/3% commission agent option #3 above, but for way less money.
Scenario 2 - Mere posting/Sell it yourself. You can now put your home on MLS with a company that offers mere postings and deal directly with the public and REALTORS® who may contact you about your property. It is worth noting that since your property is on a MLS® system you will have a very strong chance of dealing with a buyer's agent. These buyer agents will expect to be paid. Typically, they will be looking to the Seller to pay them for bringing the Buyer. If we use the $900,000 home as our example, a buyer's agent in Alberta may expect the Seller to pay them for example 7%/3% or $15,500. Plus you will pay the mere posting FSBO company a fee of an additional say $500 or so for the upfront listing fee. The FSBO company might also charge you a success fee if you do sell it, and/or try to upsell you for additional services as well adding to the cost.
Scenario 3 - Sell it through the traditional "higher commission companies" who will place your property with a local real estate board that operates an MLS® system and provide full service real estate like One Percent does. Depending upon what your home is worth, this can cost a fair amount of money. A $900,000 home can typically cost $31,000 (based on a 7%/3% commission) in Alberta through a company like this, although commission rates do vary in the marketplace.
So if you can have the full services of our professional salespeople for only $9,950, why would you not just leave it to a professional?
How does One Percent able to offer such a low price with full-service?
Simply put, low office overhead and volume. We reduced our agent's overhead to enable to them to charge less per sale which enables them to do more volume which works great for them and our clients. One Percent agents don’t focus on what they earn on a single sale, but look at their income at the end of the year after helping lots of clients buy and sell homes.
At the office level, we cut out a lot of the expensive real estate office overhead so we can pass the savings onto our clients. Instead of having brick and mortar offices all over the province, we have one central head office which manages the large volume of sale transactions. Our agents across Canada have been working from home leveraging productivity enhancing technology to sell real estate for over twenty years. With less overhead, our agents are able to both charge less and make a good living in the process.
Unlike the traditional real estate model, One Percent agents do not spend a lot of their time and money searching for clients - business literally comes to them. To them a SOLD sign is the best form of marketing to attract more clients and sell more homes. As we say at One Percent Realty, the more deals we do, the more money we are saving our clients.
Will Other Agents Show My Home?
Indeed, our MLS® listings are shown and sold by plenty of Cooperating REALTORS® all of the time. In our Ontario offices well over 80% of our homes listed were sold by Cooperating REALTORS® representing the Buyer. That is the proof in the pudding that our system works great.
Why is that. We believe it is two reasons. Firstly, our listings (under $900,000) typically offer $4,500 commission to Cooperating Brokers. While $4,500 might not be as much as some of other listings, it still is a decent amount of money for a paycheque for Canadians these days including a lot of sales professionals. The more important reason why other agents cooperate and sell our listings is that it is the Buyers who are dictating the shots these days. As mentioned above, if the Buyer loves the home does the amount of commission matter to the Buyer?
Flexibility to offer more commission to the buyer's agent, the choice is yours.
We understand that some of our clients want to offer more commission to the Buyer's agent on MLS® than say $4500 for homes between $400,000 - $900,000 or 0.5% in homes over $900,000 - the choice is yours. We will still charge you the same fee for our listing portion of the commission and you can offer those Buyer's agents a higher MLS® commission if that is something you want to do.
For example, if your home is $950,000 and you wanted to offer 2% on MLS to the Buying agents instead of our 0.5%. We would charge you 0.5% plus $950 (for our listing side) plus the 2% to the Buying agents. Hence the total commission would be 2.5% + $950 (plus GST). It's still a great deal!
Further, since we don't believe that offering any additional commission is necessary, if One Percent Realty sells your home ourselves without an outside Buyer agent we will only charge you $7950 for a home under $400,000, $9950 for home between $400,000-$900,000 and 1% + $950 for a home over $900,000.
You Owe it to Yourself & Your Hard-Earned Equity
Spending $10,000-$100,000 or more to sell your home is quite a bit of an unnecessary expenditure.
If you are thinking about selling your home call your regular agent that you used last time, but this time also call us to compare our services and commission rates. Being full-service agents, our agents provide free no obligation market evaluations just like the other guys. Please don't let someone else tell you about our system, let us tell you exactly what we will do to sell your home. You and your hard-earned equity will be glad you did.
One Percent Realty
office.onepercent@gmail.com
780-268-4888
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