Flip the 6– Earn 6% on The Money You Save Not Paying 6%.

Essential Real Estate exists to spread happiness among home buyers and sellers. And we do this by being skilled in communication, negotiation, representation, with a long history of excellent results. Success is a subjective concept. Success is an accepted offer at a fair price, on favorable terms, no stress, and no surprises to our clients. Our seller clients have one more expectation: The more of their home equity left unspent on real estate fees and costs, the happier they are. We can do this because we designed a system to work how the residential real estate transaction works when you eliminate falsehoods, misconceptions, and myths. 

It’s All About Your Equity, and the Number 6

Let’s assume Nerd Wallet and Clever Real Estate have done their research into the 6.0% issue accurately. Nerd Wallet says an expectation of an average long term rate of return on a financial investment would be 6.0%. Clever Real Estate reports the average real estate commission charged in Wisconsin is 5.81%. That’s a six on a Federal Tax Return, so it’s a six for this conversation. (Agents, if you typically quote less than 6.0% as your commission to sell a home, please correct me. ) Six seems to be the key number in real estate and investing.

This is where happiness really kicks in. You will pay your real estate commissions from your home equity. A 6.0% commission on a $400,000 house consumes $24,000 of equity. Essential Real Estate clients pay an average total commission of 3.4%. Apply that to the same sale, and the commission is $13,600. The difference of $10,400.00 is your bonus for being smart. 1. It’s your money. Do what you want with it. The real estate broker was going to spend it as they wanted, you should too. One idea is to invest it at 6.0% for ten years. Nerd Wallet Calculator figures your smart bonus could be more than $18,000 if you average a return of 6.0% and contribute nothing to the investment.

Take Your Money With You. Flip the 6.

  1. The money you save selling your home with Essential Real Estate is a bonus. To determine your bonus compare the commission you would pay with another firm to our Success Fee of $499 and 1.0% of the purchase price, plus whatever you decide to pay to a buyer agent. (Most of our clients offer and pay 2.0% to the buyer agent. Most sales by REALTOR members on the RASCWMLS are reported as 3.0%.) On average our clients pay a total commission of 3.4%. Clever Real Estate reported that Wisconsin has one of the highest average rates at 5.81% second only to Ohio at 5.82% and Missouri at 6.07%. Nerd Wallet suggests using a 6.0% annual rate of return to estimate a possible return on your investment in a mutual fund.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.