Commission Comparison Examples
A. Comparison for a $600,000 Home
Let’s see the commission comparison for a house that was sold for $600,000. As a seller, you have two options when choosing a full service realtor:
Option #1: To list with a typical realtor. Usually, the commission charged by a typical broker is 6% on the first $100,000, plus 3% on the balance (not all charge the same). Therefore, a traditional broker will charge a commission of $21,000.
Option #2: To list with One Percent Realty, for discount commission. Remember, that with One Percent Realty you get absolutely the same services as when listing with a full commission realtor. The only difference is the commission, which is significantly less. The commission charged for houses less than $600,000 is a flat rate of $6,000, plus $900 for disbursements.
$21,000 vs. $6,900! The Savings Are Huge!
You can see that with a typical realtor you pay $21,000, while with One Percent Realty you pay only $6,900. As a result, with One Percent Realty you save $14,100. All things being equal…Why Pay More?
B. Comparison for a $500,000 Home
When selling a house, people have three options: to sell through a traditional realtor, to sell through a full service discount commission agency, such as One Percent Realty, or to sell it themselves. Let’s take the example of a house worth $500,000, and let’s compare the commission for each option.
Option #1 – Sell it through the traditional brokers for full service. They will place your property on the MLS® system, operated by the Victoria Real Estate Board. Depending on the value of your home, this might cost you a significant amount. A $500,000 home can typically cost $18,000 (assuming the usual 6% commission on the 1st $100,000, and 3% on the balance).
Option #2 – Sell it through One Percent Realty for full service, but at a fraction of the cost. We, as well, will put your property on the MLS® system. We will charge you only $6,900, with all the services and exposure that you would receive from the traditional higher commission companies. This fee also includes payment to the buyers agent (usually $3000). We do open houses, handle the showings, negotiations, and paperwork that you would expect from any full service real estate company. In short, the services and exposure are the same, as you would get from option #1 above, but for way less money.
Option #3 – Sell it yourself using a “mere-posting”: For Sale By Owner (FSBO). That means paying a realtor an upfront nominal fee of around $500 to list your property on the MLS system. For this money, you get the property listed, but you will have to do all the work yourself. You will have to deal directly with the public or the buyer agents to arrange the showings of your property, do your negotiation, etc. More likely, you will have to deal with a buyer’s agent, because most buyers are represented by their agents. These buyer agents get their commission from the seller. So, you will have to pay the buyer’s agent half of the typical commission, calculated on option #1, which is half of $18,000, therefore $9,000. Sometimes, you might be able to negotiate some discount with the buyer’s agent, let’s say as an example a discount of $2,000. If you get this discount, the commission paid to the buyer’s agent becomes $7,000. Plus you will pay the upfront fee of $500 or so for the mere listing on the MLS system. Therefore, you will end up paying a total of $7,500, which is higher than the commission charged by One Percent Realty. And not only that you pay more if you sell it yourself, but you are not getting the full services and protection that you would get if you use One Percent Realty.
|One Percent Realty|
|For Sale by Owner on Mere Posting|
$18,000 vs. $6,900! The Savings are Huge!
As you can see in the table and the chart above, the most affordable option is selling using One Percent Realty, because you only pay $6,900. So, if you can have the full services of our professional salespeople for only $6,900, why would you not list with us?If you want to see a commission comparison for different values of houses, click this link: The One Percent Realty Deal.