Is the traditional real estate model completely outdated? When you own a home, you take significant financial risk to buy it, finance it and maintain it. For decades real estate agents have been paid a commission of 6%, 3% to the Buyer’s agent and 3% to the Seller’s agent. That can add up to a significant amount of money! It’s your home equity, shouldn’t you get to keep it?
Alternatively, Door, a flat-fee real estate brokerage asks for just $5,000 from each side at close. This includes all of the services a traditional real estate agency offers while leveraging new technology in order to buy or sell a client’s home. In this day and age, between 90% and 95% of consumers use search engines online such as Zillow, Trulia, etc to find homes. With the technologically enhanced way to find homes, traditional agents just aren’t needed as much as they were before the days of the internet. Cue the rise of the flat-fee brokerage.
The flat-fee real estate brokerage is a new, groundbreaking way to complete a real estate transaction. On a $400,000 house, the Seller and Buyer would have to pay their agents 3%, that’s $12,000 each! A common misconception is that Buyers don’t have to pay commission at all. While the Buyer doesn’t write a direct check, there is a 6% pool of commission paid to the Seller’s real estate agent at close. The Seller’s agent then pays the Buyer’s agent half of that compensation. A flat-fee brokerage, like Door, would ask for only $5,000 from the Seller and $5,000 from the Buyer. That’s $7,000 of savings!
The amount of potential savings are enough to make anyone question the traditional real estate model. Click here to read more about the benefits of a flat-fee real estate brokerage.
Still have questions about flat fee real estate brokerage or want to learn more about how Door can save you money? Contact an agent today!
(Image via Pictures of Money, flickr)