How it Works
Why not use a Discount Realtor?
Under the traditional model of a Real Estate Company, the listing and the selling Realtor Broker split the commission of either 6% to 7% of the price of the home or commercial property. Some of the major realty companies that I’ve worked for have also charged a transaction fee of $500 on top of the regular commission fees. For an example if you take a $500k home or commercial building and calculate the commission, $500k X 6% = $30,000 plus the transaction fee = $30,500 – this would be your total commission.
Last year real estate commissions paid to Realtors was estimated at 50 billion dollars according to besmartree.com. So this is how real estate commission is figured. Since the commission comes out of the sale, assuming you have no mortgage and your house sold for $500k, you would receive $469,500 instead of the full $500k. If you have a mortgage this would also be deducted.
Realtors have control over the most important tool in selling your real estate property, the Multiple Listing Service. The M.L.S. is the top producer in getting your home or commercial property sold. Newspaper ads, open houses and fliers do not compare to the M.L.S. According to the National Association of Realtors, 87% of all real estate is sold through the M.L.S.
Real estate commissions are negotiable but if you talk to the major realty companies they won’t own up to it. They have a standard based fee commission of 6%. When you mention “discount realty” to a “major realty company” the most common answer you will receive is “You get what you pay for”. They say this to discourage you but we are a full service realty company with no up front charges and no hidden fees + numerous 5 star ratings with great reviews.
Now, why use a Discount Realty?
They have the same required state broker’s license and are bound by the same code of ethics.
There is several type of Discount Realty’s – I will tell you about them. Some will charge a set fee to sell your home which is based on a per transaction bases; example: Assist-2 Sell and Help-U-Sell
Our 1% Listing: Our 1% full service listing (which seems to be the growing trend) is a favorite of the For Sale By Owner customers. All our listings include up to 50 photos on the MLS and your listing syndicated to all the major websites as well as numerous other websites to get your property sold. We also provide signage, flyers, lockbox, and negotiation to get your highest and best, helping you all the way through closing.
Our Buyer Rebate: At D&M Discount Realty, if you use us to purchase your new home we are offering you 10% to 20% from our total commission to help with closing cost or whatever expenses you have in buying your new home. Rules of buyer rebate are (1) Must be approved by lenders, underwriters and all parties concerned and (2) Must be acknowledged on settlement sheet as a rebate and (3) 20% is given if Buyers commission is 3% or higher, if less than 3% a 10% rebate will be given.
Now let’s check the D&M Discount Realty cost difference
Home priced at $350,000
Traditional Realtor fee 3% = $10,500 commission to listing agent
D&M Discount fee 1% = $3,500 commission to listing agent
Saving seller $7,000 in commission fees.