Our fee is $499 and 1.0%. We charge that to be sure you keep more of your money.

The reason you went into business selling services to customers was to make a profit. Elizabeth Wasserman, Editor Inc. Technology.   I respectfully disagree. tom meyer, essential real estate.

Making a profit is one possible outcome of being in business. Solving a problem that other people experience is the reason we started Essential Real Estate, LLC. The firm is profitable because it solves the problem of losing home equity on broker fees and negotiating flaws. The problem is simple: You pay real estate broker fees and selling concessions from your Home Equity. If your equity is $100,000 when you sell your home at full price, and $95,000 if you accept $5,000 less, and your broker charges a 6.0% commission on the sale price, a $400,000 sale will cost you 25% of your equity.   

Two Ways To Reduce Your Losses

Home sellers who don’t know more than their agent about how the real estate business work will lose money by making unnecessary concessions, believing myths, and giving away their negotiating strategy. Home sellers who have no choice but to pay the going rate will spend more than they might want on real estate commissions. The two ways to cut your expenses and keep more of your home equity dollars begins and ends with the ability of your agent and your agent’s reason for being. Homeowners ask real estate brokers, “What’s your commission?” They should ask the critical question, “Why is your commission X%?”

We Set Our Fee to Make Sure You Keep More of Your Money

I don’t know what fees each company charges. I also don’t know why anyone charges the fee they charge, but I assume the price was set to generate enough revenues to exceed expenses by enough to end the day with a profit for the owner. Maybe the cost of the service is set to match the level the market will bear. Perhaps it’s a combination of factors. From my 31 or so years of experience in real estate, I believe the market pretty much accepts a six percent broker commission to sell homes. From the same experience, I know firms set their revenue projections relative to the profit they intend to make. Before there is profit, expenses have to be covered, or costs reduced. We chose to limit our expenses by excluding wasteful spending on non-essential services and gimmicks. By doing this, our clients pay about 56% in fees. By being exceptionally good at structuring transactions to our clients’ favor, home sellers who hire Essential Real Estate make more money by avoiding traps and contract deficiencies. 

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. Essential real estate services are specified in real estate license law. Those services are worth professional fees. Paying professional fee rates for administrative services is a choice when an alternative exists. We are that alternative. Old business model commission rates are taxing the home equity of American home sellers. Essential Real Estate LLC was created so our clients keep more of their home equity, spend less on broker fees, and receive skilled representation in negotiating purchase agreements.

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