6% listings can be harder to sell

mphillips Flat Fee Commission , Real Estate Commissions Leave a Comment

Let’s be real honest here, 99% of real estate deals come down to price.  Sure, a home has to be marketable & desirable, but in the end, most deals come down to what a seller is willing to take and what a buyer is willing to pay.  Anyone who disputes this is in denial.

So think about it: if a seller is having to pay their agent a 6% commission on the sales price (why any seller would chose to do this in today’s real estate market is beyond comprehension), a seller has to take that into consideration and raise the price in order to cover that large amount of commission he or she owes to their agent.

So if you are a seller of a home for let’s say $350,000, a 6% commission to your agent is going to be $21,000.  You as the seller will run the math out here and realize you have to pay $21,ooo off the top before you see any of your equity.  Besides the commission, there will be even more fees to pay before you have seen any equity such as title fees, escrow fees, HOA fees, property tax prorations, perhaps a buyer’s home warranty and any other concessions you may have offered a buyer in your transaction.  Assuming a seller has a home loan to pay off, which would usually be the largest amount of obligated debt to pay off, now we are talking thousands upon thousands of dollars that have to be paid in order for you to see what, if anything, is left for you in the form of equity.

In a fair market with plenty of homes to chose from, a smart buyer is going to look for the best deal he or she can find.  This is simply human nature.  Why would a buyer want to pay more for a similar home when he can buy another one listed with a flat fee brokerage (not a commission based on the sales price) that is listed for thousands less?

With a flat fee listing, the seller, even with a lower price, usually comes out ahead of the seller who may have sold for a higher price due to the lack of large commission he or she had to pay in a 6% listing.  In addition, the old adage, “time is money” is also a benefit to a seller using a flat fee service.

The bottom line is flat fee listings often times sell faster than 6% listings because the owner of the home with a flat fee listing can afford to lower the price of the home because he or she is not having to pay outrageous amounts of money for commissions. It’s simple economics.  When a home is priced lower than the competition, even if by a few thousand dollars, buyers take notice.

Hill Country Flat Fee Realty serves the Boerne, Fair Oaks Ranch, New Braunfels, Kerrville, Comfort, Bandera, San Antonio and Fredericksburg markets.  We offer our sellers 4 options to chose from, all of which include local MLS and national exposure, which is what really matters.  For more information about our 4 options, please visit: https://hillcountryflatfeerealty.com/choose-an-option-2/.







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