Do you really need to pay up to (and in some cases, more than) 6% in commission for a full-service real estate agency to list your home in the year 2019? The answer is a resounding “NO!”.
As a full-service real estate sales firm and a flat free broker, Coverage Realty studied the cost of running a brokerage and devised a flat fee broker system that saves the customer a ton of money, yet also allows us to be profitable. It’s a real win-win! We professionally market and promote your home for a flat fee of $2500*. Coverage Realty will take you through the whole process from start to finish!
Coverage Realty was founded as a flat fee broker on the idea that in this day and age, with the advances in technology and the rise of public accessibility to data (the most important factor of the flat fee broker business model), there is no longer a need for the public to pay a ridiculously high commission fee using the traditional brokerage model.
As an experienced real estate agent with 10+ years of experience in the industry, I’ve always felt that the commissions being charged were ridiculous! So, about a year ago, I asked two questions (despite knowing the answers) that I never got good answers to (…although I did upset some agents).
Why do we charge up to, and sometimes more than 6%? Why don’t we charge 5.8%, 6.1%, 7.5%? Why is it that the most common sales commission is 6%? As you can imagine, I got all kinds of ridiculous answers, and another real estate agent even chirped at me.
The answer is that the average commission charged today is the most that the general public is willing to begrudgingly pay. It is really that simple.
What do we do differently to sell a home that is valued at $150,000, versus a home that is valued at $250,000 (assuming a 6% commission is being charged for this example)? Why does the customer pay an additional $6,000 to the real estate brokerage? Again, I heard more ridiculous answers. This question can be answered with in one simple word—NOTHING! Absolutely nothing. When working with a home of higher value, more work is involved in getting the home sold, but I can assure you that it doesn’t equate to $6000 in sales commission to the firm per every $100,000 of value (50% is a fair commission increase)!
If you’re wondering, “What’s my home worth?”, Coverage Realty can help. As an honest and experienced real estate agent and a flat fee broker, we will make the experience of selling your home as stress-free as possible. To get started on selling your home, call (586) 231-1349 or email firstname.lastname@example.org now!
*a broker co-op may apply and homes listed above $400,000 and additional .05% will be charged