If we’re being honest about commissions…

When I created Hill Country Flat Fee Realty several years ago, it was never, nor is it now, to create an adversarial relationship with other “traditional” real estate professionals (agents who adhere to the 6% commission structure). In fact, I am pleased to say I feel I have had a very good relationship and experiences with just about every agent I have had the pleasure to work with, which has been hundreds of agents over the years.

I have said, and will continue to say, if a home owner feels it necessary to pay 6% to sell their property, then by all means, have at it. However, if we are being honest, that’s a lot of money to pay in order to sell something that other people want to buy from you, right?

Let’s take an $800,000 property for example. A 6% commission is $48,000. Let that sink in for a minute. It is going to cost the seller $48,000 in commissions to “sell” their home. The same home or property that most likely more than one buyer is interested in. And, by the way, the $48,000 commission the seller is going to pay is before any other closing costs he/she will most likely incur (i.e. title insurance, escrow fees, deed prep, recording fees, etc.).

So what’s my point? So here it is: the marketing and selling process a real estate professional employs for a $400,000 property is pretty much the same for an $800,000 property with very few exceptions. The contract is the same, the process is the same, the addendums are the same, each will have a home inspection, each will most likely have an appraisal, a lender involved, etc. So if everything is the same (again, for the most part), why do sellers have to pay a commission based on the sales price?

Most real estate agents, in private, would most likely agree with me that the process for each of the above examples is the same and the “workload” is basically the same, give or take a little here and there. So, if we’re all being honest, the amount of “work” that goes into selling a property is honestly fairly minimal. I can honestly say I spend a total of 6-10 hours (there are always exceptions that can increase or decrease this estimate) on a listing from the beginning to end (first listed to closing).

Sure, I understand that we, as real estate agents, do not get paid “hourly”, but if we did, any relatively successful agent might be shocked at what their hourly rate is when looking at how little time they have invested into any given transaction compared to what their commission is. Of course a buyer’s agent can spend significant time with a buyer if that buyer ends up looking at multiple properties, falls in and out of contracts, etc. I get that and sure, in these cases, an “hourly” rate, if there was one, would be diluted, but these are the exceptions, not the rule.

In conclusion, it’s my personal opinion that sellers of real estate do not need to spend so much money in order to “sell” their properties, especially when the owner has what others want to buy from them. If you as a seller feel you need to pay 6% to sell your home, then by all means, have at it, however in my opinion, there is no need to in today’s day and age when properties, for the most part, “sell” themselves.

Hill Country Flat Fee Realty proudly serves the communities of Boerne, Fair Oaks Ranch, San Antonio, Austin, Dripping Springs, Blanco, Round Rock, Cedar Park, Georgetown, Leander, Kerrville, Fredericksburg, Bulverde, Spring Branch, New Braunfels and Comfort. Our flat fee model that saves sellers a ton of cash and is simply the smarter way to sell a property these days. Simply put, there is no need to pay high commissions these days to sell your property…save the money, after all-it’s yours!