|
|
Different discount Brokerages have different strategies, but in the end, every Brokerage has to make money to stay in business. The Brokerages that advertise 1% commissions usually have a $5,000 minimum commission payable to the selling Broker. Hence, only people with $500,000+ houses pay 1%. On an average $180,000 house in Barrie, that's a Listing commission of 2.8% compared to the 2.5% that standard-commission Brokers charge before negotiating. The buyer's Broker also needs to be paid. The 1% company can't pay 2.5 % out of their 1% share, so guess who pays? You do. What are we up to now? 5.3%? Then, they typically charge an "administration" fee of a few hundred dollars. These fees are not refundable if your house doesn't sell. Full service brokers take the hit if the house doesn't sell. These guys don't. Then, they make you pay for any advertising. If you want your house on the internet, there's a fee. If you want a picture of your house in the weekly real estate newspaper, you pay for the ads. In our market area that's an $80 per week ad. Want a For Sale sign on your lawn? That's advertising. You get the idea. If your calculator batteries have not run out, you've figured out that by the time your house has been sold, the 1% discount Broker will have cost you more than a standard-commission broker would have. |
|
Bill Rinehart |
436-5111 |
Toll Free 1-877-436-5111 |
© WRinehart2006 All rights reserved.
Reproduction or distribution without the express written consent of the author is prohibited under international copyright law