Massive improvement of service by resolving a tiny fraction of a problem.
There are a thousand things a real estate firm can do and call themselves full service. The more sizzle they add the better to justify their fee. A broker who charges 6.0% commission (Same fee as has been common since at least 1989) has a budget and they pay those expenses with the money you pay to the broker…where does your commission paying money come from?
You Pay Commission and Costs From Your Home Equity
A 6.0% commission charged on a $400,000 sale is always $24,000. But you don’t pay that commission from the sale price; you pay it from your home equity. The typical American may have 50% of the sale price in home equity…but most will have less. If that’s you, the 6.0% commission is 12-24% of your home equity. And to us, that’s an excessive amount to pay for the typical real estate transaction service.
Ask to see the budget of any real estate firm or licensee. You will discover that the home equity you pay to the firm is spent on technology for Lead Generation, and lead capture services. (Getting more customers like you is the business of lead management.) Your equity also pays for Branding. Name recognition. Promotions. Entertainment. Rent. And paying redundant staff expenses.
Essential Services are License Law Compliant
By directing a high percentage of effort and attention toward excelling at the essential aspects of real estate license law, transactions, and negotiations our client receive a higher level of skilled client representation; they pay only for that skill and knowledge. Essential Real Estate excels at providing the truly vital services necessary to present your home to the home shoppers. (Staging consultation. Professional Photography. Matterport 3D images and floor plans. Multi Dimensional, fast loading virtual tours. We’re not going to do a thousand different things that really won’t contribute much to the end result we are trying to achieve…and you certainly don’t want to pay for those things.
Where Do You Find Homes For Sale?
Research shows 80% of people who bought homes recently used the internet to find the home they bought. They mostly do this searching 24/7 from the comfort of their home on their smart phone or tablet. Massive corporations like Zillow.com, Realtor.com, Homesnap.com, Facebook, Instagram, spend billions of dollars developing their technology to match homes with prospective buyers. There is not one real estate agent or firm that can compete with attracting qualified buyers to you your home through their web site or social media. That’s good news for you! Every single home for sale on a multiple listing service in America can be included in the feed to these gigantic home buying portals loved by home buyers all across the globe.
For 6.0% commission paid from your home equity you will buy a lot of sizzle. There may be a day when your home for sale is lost in the forest of other homes for sale again. But that’s not the present market. Look around your neighborhood. How many homes similar to your home (or just number of homes) are on the market in your neighborhood? If your home is for sale you’re like that lone tree in the middle of the farmer’s field; you’re see from anywhere and you can’t be hidden. At any time you are the market for homes for sale in your neighborhood. Spending money on random advertising and promotion on social media to a few people who have no interest in real estate much less owning your home is a terrific waste of money.
Color glossy handouts. More and more double sided color glossy handouts are printed, paid for, and delivered to the broker from the printer AFTER the owner accepts an offer. These handouts look sharp and it’s stunning how home owners light up when they see their home on an 8 x 10 color glossy. And why is this a necessary expense to the home seller? It’s not. Home buyers are more environmentally conscious and they don’t take these flyers—they have more information on their smart phone than anyone can put on a paper flyer.
There Is No Waiting To See Your Home
The consumer is not waiting to hear about homes for sale from a Realtor. They’re actively looking and being looked for by home buyer matching algorithms; and these systems are constantly improved at no cost to you…or your Realtor.
Flat Fee? It’s All Flat Fee…and limited service.
Real estate licensees are turned out in great numbers. For a minimal fee and extremely limited education requirements a person can hold a Wisconsin Real Estate Sales or Broker license. This license is no indication of a person’s skill, knowledge, or commitment to real estate license law. Experience is a misnomer. A license and experience could be an indication of a higher level of ability. When you consider that real estate is a Training intensive business, not a Learning business, the chances are the licensed experienced person and the licensed limited experienced person know the same thing about filling in the blanks and checking the boxes of an offer form. The training method works well for brokers. If they can get a person to memorize what goes in this line and we check this box but not that box, very little time and resources are invested in getting the agents to the minimum level of competence. If that’s fine for a broker it should not be fine for the public.
We hear the term flat fee and wonder what isn’t a flat fee. $4000.00, 3.0%, 6.0%, $500.00 are all flat fees.
You Get What You Pay For
And we believe you should pay only for the things that matter. When a company sets their fees to make a profit after expenses you the consumer are paying for those expenses whether you want them or not. To add services to justify a 6.0% commission it makes sense to expect there will be a lot of low cost-no impact services tacked on. (That’s what brokers call sizzle)
We Exist So You May Keep Your Equity
You worked smart to build the equity you have in your home. We believe you should keep more of your equity and spend less on real estate services and costs to sell. If you’re willing to spend more of your money on nonessential services we’d like you to make an informed decision. Our clients make informed decisions; they get the inside information on how the business works and where they can improve their outcome and save their money. We created Essential Real Estate to be the preferred choice real estate firm for people who value their home equity and desire to have skilled real estate representation.
Our Clients are People Who…
Prefer to pay fair prices. Value highly skilled professional service. Know the difference between sizzle and steak. Have better use for their home equity than paying broker fees. Understand that it is the agent’s ability to negotiate the terms of an agreement that matter most in the outcome of their transaction. And finally, some but not all of our clients believe the home equity they save matters to them.
Essential Real Estate $499.00 plus 1.0%
Total and complete real estate service for $499.00 at the time of the listing and 1.0% of the sale price paid at closing is our fee. Most of our clients intend to pay an additional fee to a buyer’s agent and that fee might range from 1.0% of the purchase price to 3.0%. (We suggest moving up and down the scale using increments of .25%) The amount you commit to pay is up to you. We’re going to make sure you know how to decide on an amount to commit yourself to paying without promising to pay a higher fee than necessary. This little insight alone has saved our clients $1,000 to $8,000 in commissions.
Essential Real Estate is the only firm built to identify the essential real estate services, invest in mastering the contract and negotiating skills, while providing total real estate service. We do this by eliminating the junk service and focusing our attention where you have your attention, On Your Home Equity.