You may know this person. We call them our HERO.
Our hero is a caring person and they own a home.
They know this to be true: if you don’t overpay when you buy, you make money; overpay, and you’re spending equity you haven’t made yet. Our heroes often begin homeownership with a bit of equity. After 5, 10, 15, 30 years, our careful owners increased their equity by a lot.
They made improvements and resisted spending equity on instant gratification.
Equity is important to our clients, but it’s only part of the value of their property. There’s more value in the memories.
Our clients know when you sell, you leave bricks and mortar behind; the memories go with you.
We believe you should keep your memories safe when you sell your home. Protecting your equity is our job.
One day, it occurred to me that we all sell for the same reason—to get the equity to do our next plan in life.
And when we sell, that’s the time our equity is at risk. This is when an expert real estate guide is essential.
However, selling is when the real estate sales system works against the careful owner.
The system is designed to be good for consumers and profitable for the broker, the bankers, the government, and service vendors. Home sales drive the American economy, and the machine runs on the fuel of home equity.
As good as you might be in saving money, the people who want what you have are better at getting what they want than you are at keeping what you got when your emotions get in the way.
Ask any broker, and they will tell you: real estate commissions are negotiable.
That’s true. Commissions are negotiable.
The problem is, there’s no negotiating happening.
Since 1989 when I started, the commission has been 6.0% of the sales price and negotiable.
Here and across the country, the avg commission is still at or near 6%.
Our clients are intelligent people. Remember, they’re the hero of the story.
Whether they say it or not, they question the obvious: How can their home values rise and fall with the economy, but broker commissions remain immune to market pressure?
In the recession, when homes were on the market for six months and sold far below asking prices, commissions were six percent.
Today when homes are on the market for six hours and selling well above appraised values, commissions are still six percent.
Six percent must be magical.
Six has staying power because one side has no idea how to negotiate, and the other side is highly skilled at not negotiating.
Brokers handle the commission question the way they were trained for a hundred years.
It goes like this: Our commission is six percent. It’s negotiable, of course.
But, you don’t want to do that because… (manipulate fear here)
And homeowners are easily persuaded by fear.
Home sellers don’t know how to negotiate. What they’re doing isn’t working.
A typical home seller who pays the full commission will spend $24,000 of their equity paying commission.
We fixed that by. We show our heros where and when to negotiate the commission and our typical client pays about 33% less. That’s about $8,000.00
It’s possible to get better terms and pay lower fees, which add up to more equity savings. That’s what we do for our heroes. They love it.
If I said it before, I will say it again–you pay the costs to sell and you pay for negotiating errors with the money that would be your equity.
I know, you might think you’re likely to lose money by underpricing your home. This market seems to have solved that problem as lower prices just draw more buyers and more competition pushes prices higher.
You’re most likely to lose money by being misled into paying for things you don’t need and paying fees you could avoid.
Selling a home is something you will do a few times in your life. When you’re on a journey you’ve rarely or never taken, a guide who’s been there, who knows the system, knows the contracts is invaluable.
Careful people who value their equity and memories don’t need a social media marketer, or expensive sizzle to sell their homes. Zillow is going to put your home in the face of every person who thinks of owning a house like yours.
Careful people who would rather keep what they earned than give it away turn to us. We’re their guide avoiding traps and negotiating better terms. After all, real estate is a contract negotiating business, and buyer agents don’t work for home sellers.
At Essential Real Estate, we guide careful people to save home equity money by paying lower fees and avoiding costly negotiating errors.