Selling your Home the Northwest Integrity Real Estate Way!
HOW IT WORKS?- Frequently asked questions
Often called the Discount Listing Broker (sometimes the percentage is 2%) this model offers to charge the seller between 1 1/2%-2% of the sale of the house, with the money going to the listing broker.
The buyer’s agent commission is still typically the same 2.5%-3%, but with this model you end up paying a much smaller amount as compared to the percentage generally required with full or “regular” commission brokerage.
Best of all, the reduced commission rate is set and made available for review upfront, so there won’t be any surprises at closing.
Given the reduced commission rate, one may assume (often wrongly), that you will receive lesser service from the brokerage. But this isn’t true if you choose one carefully. Using Northwest Integrity Real Estate as Real Estate broker will still provide FULL service to our sellers.
Low or reduced rate commission brokers are often able to offer the same (or similar) services as the traditional sellers’ agents, therefore SAVING the sellers money at the closing table without compromising service.
We conduct a comparative market analysis to make sure your house is priced right, we will negotiate the sale, we carry Errors and Omissions insurance to cover any mistakes made and we make sure to list the house on MLS and many other popular real estate sites. We walk the entire transaction through the closing process, dealing with the inspections, title and escrow company, the appraiser and the lender. Giving you the satisfaction of knowing everything is under control and handled.
Sounds like a good deal right? That’s because it is.
But if we handle everything that traditional agents do, why would we offer a lower commission?
To get more business and we understand how to sell a house in a streamlined way that allows us to handle a lot of listings at the same time.
What we bank on is a lower margin when selling clients homes at the tradeoff of closing more deals.
We are able to offer lower commission rates because technology makes it easier for the sellers’ agent to sell a home faster and with less effort needed on our part.
For example, once the details are all put together and the house is 100% ready to go on the market in a way that will cause it to sell, it takes little extra effort to list the house on the MLS and then share it with brokerage websites and the real estate portals like Zillow and Trulia and others.
Low Commission (Flat Rate)
Our Flat Rate Real estate agents sell a house for a flat, fixed dollar amount, often ranging between $2,950-$7,950, or another agreed upon number depending on the value of the house or service level of the real estate broker in question.
As the name suggests, there is no commission in the traditional sense, just a flat, predetermined listing fee, which isn’t paid until closing. There are no upfront fees unless you want to upgrade your photo package to include drone photo’s. This is a low amount and just covers the cost of the photographer.
The level of service that is offered depends on the choice menu of services the seller prefers. So if you’re going to go this route, be sure to have a full understanding of what services you prefer so you fully understand exactly what we will (and will not) do for you. For example, if you are willing to show your own home, you will have the biggest discount on the set fee by participating in the showing process.
Our brokerage services will include such services as the initial consultation about the house, Full Comparative Market Analysis, photography, yard signs, scheduled showings, marketing, writing the contract, walking the transaction through the closing process, a referral network of many resources and more.
As a flat rate real estate brokerage, we will also list the house on the MLS, which includes sharing the listing information to thousands of connected databases and websites and taking advantage of the internet for syndicated distribution to get the highest level of visibility for the listing.
Bear in mind that in this case you will still be responsible for paying the buyer’s agent fees and is typically the same 2.5%-3% on top of the set fee if there is another agent co-broke involved in the sale of the home. Our goal is to save that co-broke fee. We do not double dip both sides of the transaction like traditional brokerages do if they bring you the buyer, they want to get paid the co-broke and the listing side of the commission.
A Hybrid Model
This Set Fee Model has been around since the late 1970s and originally came about when agents and agencies negotiated fees and services, usually with higher priced houses.
This model has evolved and can take on many variations with other Brokerages.
If you are considering this model, pay careful attention to the details of the agreement for commission and set fee being paid so you have a clear understanding.
Regardless of the service menu options you choose, the basics of using a seller agent are still there:
- the house is listed on the MLS and thousands of other websites.
- the contracts and legal necessities for that state are handled by the
- agent.
The home is being marketed online.
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Buyer Rebates
Buyer rebates are also known as “commission rebates” and occur on the buyer’s agent side.
With these types of deals, the real estate agent working with the buyer will return a portion of the commission to the buyer, it will be in the form of a credit towards their closing costs or other determined cost the buyer may have to pay. This is another way to save money on the purchase of a home.
The buyer can use this money toward their down payment, closing costs, sometimes to buy points on the mortgage, or in some cases may take the rebate as cash at the closing (if the bank allows it). However, most banks won’t allow cash at closing any longer.
Under current legislation, buyer rebates are legal in 40 states. It’s a good idea to check the state website for real estate regulations to see if this is an option for you.
This type of discount real estate broker usually doesn’t impact the seller because they still have to offer the same amount they normally would.
Are Discount Real Estate Brokers A Scam?
No, discount and alternative real estate broker services are not a scam. In fact, they are far from it.
Discount brokerage options almost sound too good to be true but that’s only if you’re not familiar with the way the internet and technology have changed the way we buy and sell houses.
And, just as with any business, there will be good and bad companies and good and bad agents.
Commission rates are not regulated by any agency or legislation. As such, they’ve always been open for negotiation.
Yet despite the options available, most individuals don’t realize that they can ask for a reduced rate or explore discount brokers as an alternative.
It’s not something that’s advertised or widely known by the average person.
Yet, despite the good deals that can be had, there are potential problems or challenges that can arise when using discount real estate agents and you should always do your research in order to be well informed before making a decision.
For example, some discount models rely on the volume of houses they sell to make money, resulting in services that may not be quite as robust or beneficial as what you might get if you pay an agent the full commission rate.
You also might not get as much hand-holding either and that’s important if you don’t know what to expect when selling a house.
Discount real estate agents and services are disrupting the industry, largely because they are taking advantage of the internet and technology to a greater end.
Automation and digital marketing trends have aided them in reducing overhead and marketing efforts to attract buyers for listings, affording them the opportunity to offer services at reduced rates.
As in all industries, it’s important that you understand there will be good and bad service providers, but if you do your homework you’ll can find a discount real estate agent option that will save you money and still provide the level of service you are looking for.