Profit is an outcome of results…as is loss.
What would you say if I told you we didn’t start Essential Real Estate, LLC to make a profit? We started the firm to solve a problem. There are too few broker options at alternative prices and service for home sellers who wish to spend less of their home equity on costs and commissions.
Success will be reaching $100,000 in equity saved annually by my clients. Profit for Essential Real Estate will be an outcome of wise negotiations for my clients and controlling my expenses without passing them on to clients.
A broker fee of $24,000 is paid from home equity after deducting for negotiating errors, selling costs, and mortgage payoff. When we look at the commission as 6.0% of $400,000, it’s not too harsh, but we don’t pay selling costs from the sales price. The bills are chared to our equity. For a person with $100,000 equity, is paying 24% in commission necessary?
There is no right or wrong answer. Sixteen percent might not be necessary either, but the $8,000 you keep using the Essential Real Estate Success method is 100% a profit for you.