We often get challenged with statements from competitors like, ‘You get what you pay for.’ Let’s dive into that, shall we?
If you’re looking for a big fancy brokerage office that you’ll never go to, or ‘Just Sold’ postcards of YOUR home AFTER it’s sold…Listed Realty probably isn’t a good fit for you. If you want effective direct marketing, professional photography, a relentless team of experienced professionals, and a smooth transaction, we welcome you to schedule an appointment with us.
To understand why there is such a spread between 2-4% listing commission and our $3500 listing fee (on homes up to $500k), allow me to walk you through the numbers:
Overhead– real estate transactions happen almost entirely online and remotely. A smaller team of agents don’t require a massive office space which theoretically commissions pay for. Do we work with some of the best title companies in the area? YES. Do they have a beautiful office for you sign your closing papers at? Absolutely. You will sign the sales contract via electronic signature from the comfort of your own home. Not internet savvy? We’ll come to your house, or meet at our office. Moral of the overhead story, we don’t have a lot therefore we don’t need to nickel and dime you to cover it.
Commission Splits– agents have a commission split with their broker of record. Sometimes it’s a little, like 5% and sometimes it’s a lot, potentially as much as 50%. Listed Realty is a brokerage who believes agents earn their listing fee and the brokerage shouldn’t take that away.
Hours to dollars– this is really what it boils down to. How does an agent earn 9k in commission on a $300k property that went under contract in 3 days? Before the internet, I can absolutely see it- newspaper ads, networking events, expensive photography, open houses, etc. So much of this system is automated now, if we break down the hours to dollars I would be afraid to tell you what the hourly rate would be. Seasoned agents will tell you their experience holds value- we 100% agree to that statement. But Agent John, is your 15 years in the industry really worth upwards of $600/hour…?
To be clear, we are not knocking our peers, simply defending our own beliefs on the listing commission scale. Listed Realty found a way for the seller to keep more of their equity when selling their home. Tried and true.