Traditional real estate commission rates range from 2.5-2.8% to 3% on each side of a real estate transaction. Traditionally, commission is paid on top of the purchase price of a home.

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In Colorado, the average home listing is ……. averaging ……. paid in commissions. In this case, with an average home loan, this equates to 5 years worth of mortgage payments on top of the value of the average home.

 

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The US Census Bureau reports a homeownership rate of 63.7% among Americans – well over half of the US population. 1 The dollar amount represented by traditional real estate commissions on an annual basis is……….; last year the impact of this expenditure was …….., ….% of that cost lies primarily on middle class individuals and families.  

If you purchased or sold a home anywhere in the US, chances are that you overpaid for real estate representation. Technology and other factors are changing the way real estate transactions are conducted, making them more efficient and inexpensive, but the industry continues to cling to the 6% commission level that agents are accustomed to.

There is a better way.

An inflated variable commission no longer makes sense:

Buyers and Sellers should not have to pay more simply because a home costs more. It is not fair for buyers or sellers to pay more for the same services simply because commission is based on a percentage of the home.

Technology is making the agent’s job easier. In most cases, the price of services has not changed to reflect these advances.

Smart CMA programs (current market analysis), automated contract software and eSignature are among the many advancements in technology that have made the work of real estate agents simpler and less labor-intensive than ever before.

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Your agent’s job is easier, but the cost associated with buying or selling your home remains stagnant. Technology saves time and effort on the part of the agent. Shouldn’t these savings be passed onto consumers in the form of reduced commission to real estate agents?

Online portals, like Zillow and Trulia, give consumers access to an abundance of information; the resulting impact is staggering. Research released in 2013 by The National Association of Realtors in partnership with Google, found that 90% of buyers find the home they end up will purchasing, not their agent. 2 As a buyer are doing most of the work of a home a purchase transaction yourself, but pay the same commission you would have paid if the agent had found your home.

The need for professional real estate service remains, but the real estate agent to-do list is shorter and the tasks are easier to accomplish than they were in the past. It it possible to get professional, full service representation without having to sacrifice your home equity?

1 United States Census Bureau. (2015). US Census Bureau News released January 28, 2016. Retrieved from

census.gov/housing/hvs/files/currenthvspress.pdf.


Hiring the best agent

Commission vs Flat Fee

A Declaration of Client Rights

As a buyer or seller of residential real estate, you have rights and protections – under the law, and based on moral and ethical standards of conduct. You have the following rights as a consumer:

Financial rights:

1. You have the right to every detail contributing to financial and lifestyle decisions in your transaction.

2. You have a right to know how much you are paying for real estate services to both the buying and selling agent.

3. You have the right to fair pricing based on the service, experience, and team of your real estate agent.

4. You have the right to make all decisions regarding both your home's pricing and coinciding commission value offered to the buyer’s agent fees.

5. You have the right to make all decisions regarding your offer, including the compensation offered to your agent.

Transparency:

1. You have the right to control every aspect of your transaction.

2. You have the right to full transparency.

3. You have the right to clear information about your personal real estate deal.

4. You have the right to see every home that meets your specifications. This includes homes For Sale By Owner (FSBO) and every available home that matches your criteria – regardless of the compensation offered to the buyer’s agent.

5. You have the right to information about any home that is publicly available or available to your agent. including currently withheld broker remarks, sold history, and commissions compensation.

6. You have the right to regular and timely communication.

7. You have the right to have all interested buyer see your home.

8. You have the right to see a listed home without representation.

Experience (agent) :

1. You have the right to negotiate the commission rate of your agent.

2. You have the right to control every aspect of your transaction including your agent and their fee.

3. You have the right to know the experience of your agent.

4. You have the right to know the number of transactions closed by your agent compared to others in your area.

5. You have the right to the operational structure of your team or agent.