1% Listing* and How It Works
We believe in flexibility in allowing our clients to decide how much commission they want to pay. Traditional real estate is 6% (3% to listing agent and 3% to buyers agent). Traditional "1% Listing" is a total of 4% where (1% to the listing agent and 3% to the buyers agent)
We offer full service 1% listing* where the sellers can decide if they want to pay the buyers agent any commission at all. We will still list the property on the market but will not offer any commission to the buyers agent. In this case, the buyer's agent will need to charge the buyers for any commission they want to receive.
Commission Savings
(We are using a $200,000 property for example)
1% Listing* (Broker Transaction Fee $495)
Listing Agent Commission - $2000
Buyer's Agent Commission - $0
Broker Transaction Fee - $495
Total Commission - $2495
Saving from (4%): $6000
Saving from (6%): $10,000
4% Listing* (Broker Transaction Fee $495)
Listing Agent Commission - $2000
Buyer's Agent Commission - $6000
Broker Transaction Fee - $495
Total Commission - $8495
6% Listing* (Broker Transaction Fee $495)
Listing Agent Commission - $6000
Buyer's Agent Commission - $6000
Broker Transaction Fee - $495
Total Commission - $12495
Terms
Because we are paying a commission to buyers agent, we want our clients to be aware that it will limit the number of agents willing to bring a potential buyer. The property will still be listed on the market as well as other sites such as Zillow and social media sites such as Facebook.
For our 4% Listing, we believe in short terms so the minimum term will be 1 month but for our 1% listing the amount of work we have to screen and work with potential buyers we would need more time so the minimum contract term is 6 months. During theses 6 months, at any time you can choose to offer buyers agent commission if you choose to do so.
Terms
Listing Contract: 6 months minimum
Listing Commission : 1% + $495 Broker Transaction Fee (Close of Escrow)
Options: Seller can choose to offer buyer's agent commission anytime during the transaction. (1%, 2.5%, 3%, 4%)
*Commission are always negotiable.
*Early Termination: For any reason, if the sellers wants to terminate the listing contract before it expires, there is a $500 early termination fee.