Let’s talk about less real estate commission from a different point of view. Let’s talk about the math that has to happen for you to get you home sold. Most buyers in today’s market, or any other market for that matter, expect to negotiate the sales price that you are asking down to a lower price. That is regardless of whether that price is accepted in terms other than the sales price like the seller paying closing costs or giving discount points for the mortgage. So, with that being said, let me walk you through the average deal.
Most buyers offer 10% off the list price on the first round of negotiation. And, let’s say that you as the seller have agreed to pay the listing agent 6%. The first offer that you are looking at is now equal to 84% of your asking price. Is that acceptable? Most people say “NO”. Okay, so you negotiate further and you come to agreement at 95% net from your sales price. But then when you add the 6% commission that you agreed upon when listing it, you are now at 89% of your asking price. Most of the sellers that I talk to still say that that is way too much off the asking price. You see, the simple truth is that selling a home or condo is costing you way too much money these days.
89% of the asking price is 11% off retail value which was calculated based on a slight appreciation in most areas of Metro DC and represents 3 to 4 years worth of appreciation. Now remember, this whole time you have paid taxes and maintenance to be able to add the appreciation rate onto the home.
So, let’s talk about another way to sell your home. At Wilson Realty we sell homes for $500 and .005 of the sales price at closing. This saves at least 2.5% of the commission on the listing side if your home is over or around 300K. If you home is around 800K and above, you are really saving money. The $500 is so low that it doesn’t move the percentage, so what you are really paying is the .005 of the sales price when it sells, saving the seller even more money. And with Wilson Realty’s Buyer Magnet System, if a buyer comes to you, one that is not working with an agent, you have even more savings because you keep the commission you are offering out. And this is the 3% that most of my clients offer to the buyer’s agent in the MLS. So, in that case you save 5.5% of your equity. And you can drive a Mack truck through that spread, allowing you to accept more offers when they come in, quicker.
You have to view more details on Wilson Realty Group so that you can get the full scope of what I am talking about. It is important that you know how you can save at least 1.5 years of your equity just by being smarter about how you market your home.
The best part of our service is that you can experience the same results that over 7,000 other clients have experienced. These 7,000 clients successfully sold their homes and saved thousands of dollars doing it. Quicker time on the market, more money in our seller’s pocket to realize more profits, or the ability to offer more concessions to the buyer or dangle more commission to buyer’s agents is what makes the deal work.