I have been hearing a lot of radio and television ads aimed at making Reators look like bad folks that out to gouge their clients with “high” commissions. They claim low commissions and leave word fees out of their ads completely. But their “fees” are where they make up the difference. I plan on laying that out in this blog post
I work hard to maintain a level of integrity that is a standard that was set by my father while he was training me back in 1992. I wanted to reach out personally about the new companies that are misleading people in my industry. Lately these firms are trying to make it look as if I don’t care for my clients and are overcharging them, and worse, not providing the high level of service that I hope that I do for you. Clients are number one to me and open communication is the key to our relationship.
There are a handful of real estate companies, (I will leave them nameless at this point, But I am certain that you’ve heard of most of them), coming out and advertising all over on tv, radio and online that they will sell a home for less than a traditional broker. This is the misleading part, almost fraudulently misleading.
They say that they will save you money by charging a small flat fee as their commission. What they don’t tell you in the ads is that they charge what they call, service fees. These fees add up to over 10% of the sales price! This is the small print. See an actual example of an offer from one of these companies below. For an offer of $334,000, their service fees total $35,070 which equates to 10.5%, while my commission structure is 2.8% for the buyer side and 3%-3.2% listing side for a total of 5.8%-6%. Their fees add up to over double what the listing side broker receives in a normal transaction!
“Commissions” and “fees” are in the same boat, just labeled differently. A seller needs to add up all and compare and they will see that Realtors are clearly not the ones do the gouging!
I wouldn’t say that they are lying, they have figured out a way to say it in a manipulated way to stay on the legal side and then hit you with the small print. And that is that the service fees are not spoken to in the ads. It is a classic case of “if it sounds too good to be true…”
I wanted to get this info to you in case you know of someone falling for this type of sales tactic. Communication has always been paramount to me so feel free to call me directly if you want to discuss this right away.
“Commissions” and “fees” are in the same boat, just labeled differently A seller needs to add up all and compare and they will see that Realtors are clearly not the ones gouging!