Why Am I Paying Tens Of Thousands Of Dollars In Commissions?


​Agent: Your Home Is Fabulous, It Should Sell Right Away.
Homeowner: So Why Am I Paying Tens Of Thousands Of Dollars In Commissions?

If the above sounds familiar, here is the answer. Because the agent didn’t tell you that some companies have hourly rate models. Consumers have allowed themselves to be lulled into the idea that the Commission Model is the right way if not the only way to sell and buy homes. They don’t ask the all-important question of: What am I paying for? Ask the agent: please break it down for me, how much is for marketing, how much for help in pricing the house (knowing that I can get an appraisal from a licensed appraiser for $500 dollars), how much is the cost for negotiation (comparing to the cost of an attorney).
Sellers should look at both the Commission and Hourly Rate options in order to make an educated decision on which model to pursue. For higher priced homes, of $500,000 or more, the hourly rate option could result in tens of thousands of dollars in savings with services that are actually enhanced.

Buyers should ask about Commission Rebate Programs, where in exchange for paying an hourly rate, half of the real estate commission is Rebated to them. This works extremely well for focused buyers who plan to buy within 3 months and have a target market identified for the purchase.

If you want more information about the hourly rate options, you should contact Keith Eliou Real Estate Services.