Acquisition. The question is never, What don’t you want for Christmas? This is the season of receiving. It’s an important season in American culture. The American is an acquisitive creature.
To live in a material acquisitive world Americans become adept at trading as little as possible for as much as possible. And we expect it. A tried and true method to acquire more for less is sell the sizzle. A handy example of selling the sizzle is an appealing ad for the incredible shrinking fast food hamburger. When you buy the burger that looked so good in the advertisement the burger you are handed has less meat, smaller buns, 1 pickle not 2. Less substance. More price will continue until one day we hand over $10.00 and the person at the counter will show us a picture of a burger with everything on it. And we’ll be satisfied.
Why would we expect anything more? To fund a lifestyle at a level one has become accustomed to, there needs to be more revenue and less cost. Selling sizzle instead of steak when you can get the same price for sizzle is going to keep happening until the consumer quits buying less for more. Or a business flips the script and provides more for less, and stays in business.
The new generation is more inquisitive than acquisitive. Maybe because they have more choices at their finger tips and more information they are more likely to ask why where we and our parents were quick to ask how much.
Patrick and I designed our company, Essential Real Estate to be a healthy choice for people who want all of the service at a fair and reasonable price. People who want substance. Essential Real Estate set fees at 33% of the price the market will bear. And we did that because we believe this is true, “Help enough other people get what they want in life, and you’ll get everything you want in life.” Simply put, you can make a profit charging a fair price and leaving more for the customer. We don’t need to acquire more of your home-equity.
Real estate transactions are governed by transaction law. The service a real estate firm is paid to provide is the service they’re licensed to practice at a high standard. The transaction is substance. Our expertise is in the essential real estate service our license expects us to provide expertly. When knowing nuances of the real estate transaction is not your thing, the smoke from the sizzle might cover your substance deficiencies…until someone gets burned.
The six percent, more, or less broker fee is a choice businesses are free to charge. In the next decade the consumer will demand and receive more choices. They businesses that deliver those choices will be built less on the acquisitive model and more on solution at a fair price for expert service model. Essential Real Estate is that choice today.
We believe 4.0% or less is a fair fee when the median time on the market is 9 days.