What does Door charge?
Door charges a flat fee of $5,000 per side, paid at close, for full service real estate brokerage services.
What is a “side?”
In every real estate transaction there is a buyer (the “buy side”) and a seller (the “sell side”). With that in mind, there are two “sides” in every real estate transaction. Traditional real estate agents charge 3% commission per side, paid at close, for a total of 6% commission.
I thought the buyer doesn’t pay commission
This is a common misconception. While the Buyer does not directly write a check to his/her real estate agent, rest assured everyone pays commission. There is a 6% pool of commission that is paid to the Seller’s real estate broker upon closing. The Seller’s broker then pays the Buyer’s broker half of the commission, i.e. 3%, as compensation. As a Buyer, your agent is compensated 3% of the gross sales price.
When you work with Door as a Buyer, we give you back all the commission we receive above our $5,000 flat rate. For example, if you buy a $500,000 house with us, Door will likely be paid 3%, i.e. $15,000. In this example, you would receive $10,000 back at close.
Do I have to pay anything up front?
No. Door only earns a fee when the home sale or purchase is successfully closed.
Are there any extra fees?
No. You won’t pay Door a cent over $5,000 per side, even if you’re selling a million-dollar (or higher) home.
What is included in your fee?
Everything a traditional agent does.
As a Buyer, we: help you with financing, search for homes, show you homes, handle your offers, manage the paperwork, see the transaction through to title, and negotiate to get you the best price.
As a Seller, we: use our pricing process to expertly (and correctly) price your home, stage your home, take professional photos, craft a 3D model, market the home via the MLS and more than 90 websites (including Zillow/Trulia/Realtor.com), manage showings and offers, negotiate on your behalf, and see the transaction through to title.
Whether a Buyer or a Seller, for any home above $168,000, our flat fee of $5,000 saves you money.
Is a yard sign included?
Is an electronic key box included?
Isn’t 6% commission legally required?
Absolutely not. If it were, that would be price fixing and highly illegal.
Six percent has become the customary commission in the United States. Only two highly developed countries in the world have such a high commission structure for selling homes (the other being Canada). No one is really sure how or why the 6% commission came about. In Europe, for instance, total commission on a home sale tends to be below 2%. For more, read “An Extra Cost in American Home Sales” from The New York Times.
Won’t other real estate agents not show my home if 3% is not offered to buyers’ agents?
We encourage all our Sellers to offer 3% Buyer’s agent commission (BAC). The unfortunate truth is that some traditional agents will discriminate against homes that do not offer 3% BAC. If a Buyer comes directly to us, then our Seller only pays a flat $5,000 per side, for a total of $10,000.
When do I get my cash back if Door represents me as a buyer?
Usually you receive the credit at closing. Another option is for us to send it to you via check within 14 days of closing. The buyer representation agreement you sign with Door spells out exactly what our fee structure is and when/how you will receive your credit back.
Is Door a member of the MLS?
Yes. Door is a member of the North Texas Real Estate Information Systems (NTREIS) multiple listing service.
Are Door’s agents licensed real estate agents?
Yes. We are all real estate agents licensed by the Texas Real Estate Commission.
Why doesn’t Door do “hip pocket” sales for its clients?
A “hip pocket” listing is a listing that is not marketed via the MLS and real estate search engines and is instead sold off-market between two agents.
At Door, we advise against “hip pocket” sales for our sellers. When a real estate agent represents you, the agent owes you a fiduciary duty. This means that the agent must put your interests (even financial interests) above their own.
We think “hip pocket” listings are unethical because they inherently limit the market exposure of your home. If, for instance, your home in Dallas is sold via a “hip pocket” transaction, a potential buyer elsewhere who would have paid $25,000 more will never have the chance to see your home. Thus, your interests as a Seller are not held above those of the agent (who wants to protect the 6% commission).