Why Do You Do What You Do?

Making money, having health benefits, or becoming famous are outcomes of what we do. In some cases, these benefits are the WHY a person does the work they do. There are times when we have an opportunity to create something to solve a problem for other people, and the WHY is more significant than the payoff outcomes. Essential Real Estate exists to be our solution to a problem. 

Owning a home, some say, is part of the American dream, an avenue to financial security. To own real estate won’t make one’s dreams come true, but for those who choose to own their home, appreciation of value, and the growing home equity offset the costs related to owning. Appreciating value and decreasing debt against the property leaves a person with a nest egg of home equity dollars. On paper, that equity is a noticeable portion of net worth. As our net worth grows, so do our lives. And as our lives change, the value of the real estate compared to the amount of the home equity changes. When our plans change, and the home we live in is no longer part of the program, we will most likely part ways with the house, take the equity, and invest it in our next life plan. How much of that money-in-the-bank-equity is ours to keep might be far less than we expect. Costs to sell, including taxes, fees, and broker commission, are paid from our equity, and the amount that we pay is calculated as a percentage of the sales price, not as a percentage of our capital. (For example, a person with $100,000 of home equity selling a $400,000 house might pay 6.0% of $400,000 in broker commission. That 6% is $24,000 and $24,000 is 24% of their equity. Six percent is just sizzle.)

Broker Fees – The Value of Service and the Offer

The value of anything is relative to a person’s need and the thing’s quality. We don’t always know what we need, and we rarely can be sure of the quality of anything until we use it. And that’s why real estate broker commissions remain immune to fluctuation with the changing tech-driven economy. If you knew what you needed and understood what you’re seeing is the sizzle and not the steak, you would be more careful spending money from your home equity savings. 

Problem Identified and Solved

We believe home sellers should have an opportunity to keep more of their home equity when they sell and spend less of their equity on broker fees and selling costs. The problem is two-fold. There are few if any choice for full-service real estate brokerage at a price that is not arrived at by 6% of the value of the property. The second branch of the problem is that the home sellers often need or have better uses for all of their home equity, and those uses are not related to paying the bills of real estate brokers. 

Essential Real Estate’s Big WHY

We are in business to be your choice for full-service real estate representation at a price that leaves a lot more of your home equity in your hands to invest in the things that matter to you. A typical home selling client of ours will sell a home valued at $400,000. Our clients learn that they choose to structure their negotiations to keep at least $8,000 to $12,000 of the $24,000 they would pay if the broker commission were 6.0% of the purchase price. 

It’s A Lot of Money 

Every dollar our clients keep in their hands is a dollar they may invest in their health and well being of their families. When representation matters, and you have better use for your money than giving it away to people who will use your earnings to fuel their lifestyle, Essential Real Estate is probably the firm to interview. 

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

The real estate transaction, disclosure, and confidentiality are the business of a Wisconsin licensee. It's in the transaction where the skill of the licensee, and their commitment to the law where the public is protected or placed at risk. What you see REALTORS do to brand themselves and their firms, promote their service, advertise, and process paper do not require a license. I believe negotiations to create and honor a real estate purchase agreement is where the agent has the greatest value in a transaction. Paying professional fee rates for the administrative services is a choice consumers deserve. Old business model driven commission rates are taxing the home equity of American home sellers. Essential Real Estate was created to put more money in the hands of the consumer by eliminating expenses for the firm and charging a fair price for the real real estate service.

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