The Bullseye Difference
First off, in the majority of real estate transactions, the seller is responsible for paying the real estate commission. There is usually a buyer’s broker, and a seller’s broker and they usually split the commission equally. A typical transaction would work like this.
Seller “A” is selling their house to buyer “b” for $500,000. The commission on the transaction is 5% for a total of $25,000. At the closing seller, A’s realtor will get a check for $12,500 and buyer B’s realtor will get a check for $12,500. What percentage the realtor gets and what percentage the company (Century21, Remax, Redfin, etc.) gets is negotiated differently from company to company, and to be honest, it doesn’t even matter to the seller. All they know is they are paying $25,000 in commissions. How it gets split up between the agents and their respective companies is immaterial.
What most sellers don’t realize is that real estate commissions are NEGOTIABLE. The only constant in the industry is that at least 2% should be offered to the buyer’s broker. The seller’s side is totally negotiable.
At Bullseye Realty Group, this is how that same transaction would work.
Seller A sells their house to buyer B for $500,000. The commission on the transactions is 3.5% for a total of $17,500 with $10,000 (2%) going to the buyer’s broker and $7,500 (1.5%) going to the seller’s broker. In addition, if the house went under agreement within the first 14 days after the first open house and additional $1,250 (.25%) gets taken off the seller’s brokers commission for a total commission of $3.25% or $16,250.
That’s a savings of $8,750. Plus, don’t forget, you’ve already received professional photography, a 2-hour session with a professional home stager, a $250 credit with a professional landscaper, and professional color brochures highlighting your property. All included in your 3.25%.
You’ve most likely built up a lot of equity in your property. Don’t give away any more than you need to in real estate commissions. Don’t get me wrong…. I’m happy to take it….but there’s no need!!!