TRELORA is one of the first, and certainly the best, flat fee realty in the country. The concept of flat fee real estate commissions is pretty simple: technology has put more power in the hands of homeowners and homebuyers without any commensurate reduction in commissions for real estate transactions.
To be more specific, think of how much time you spend on Trulia or Redfin or Zillow. Before those sites existed, you depended on your REALTOR to pull comps or tell you what was available and at what price. Today, you spend hours and hours scouring these sites, removing that effort from your real estate agent. Your agent isn’t doing nothing, but she’s doing way less. You are bringing the homes to her. And what’s worse is that in the past six years housing prices in Denver and Seattle have doubled, which means real estate agent commissions have doubled.
In Denver, the median home value is $502,986, which creates a $15,089 commission for one agent.
In Seattle, the median home value is $772,729, which creates a $23,181 commission for one agent.
The above figures represent 2018 values based on a 3% commission for each side of the sale.
TRELORA Flat Fee Real Estate
This is why we created a different fee structure. Ours is a fee, not a rate. We believe that flat fee real estate commissions are the only way that real estate will be transacted in the future. Agents are a valuable part of the process, but they make too much money for the value they deliver. And they don’t do as much as they used to. It’s time for change.
Flat Fee Real Estate Commissions WITHOUT TRELORA
While we would love to have your business and believe we would do an awesome job, being able to offer a flat fee commission to an agent is already in your hands. When you sign with an agent, there is a page in the agreement that states, now pay attention to the language here, what you will offer your real estate agent for their work. This is an ask on their part. It is not law. They fill in that blank for you, unashamedly, for the full 3%.
HOWEVER, you have the power and authority to offer them a flat fee commission. Maybe you make it $4000, like we do in Seattle. Maybe it’s more, maybe less. Now keep in mind that they don’t have to accept, but it is within your rights to negotiate this point. More on “commission objection” down below.
We doubt you will find any REALTOR who would represent you to the fullest extent of their powers for $3-$4000 for a half million dollar home. In their minds, they are giving up $10-$15,000 on this deal. Why should they take it? And they likely won’t. Being an agent is only good if you make $400+/hour for your work. No less.
Real Estate Agents Provide a Service
When you get down to it, real estate agents provide a service. They help you transfer your home to someone else or they help you get a home transferred into your possession. There are norms that they do this quickly and for the highest price for a seller or lowest price for the buyer, but there are many things beyond human control in pursuit of these ideals.
Nobody who Provides a Service should get a Percentage of Your Home Equity
If you remodel your kitchen or add a garage, the contractors don’t ask for a % of your home’s value as payment. A real estate commission rate doesn’t make any sense. It never really did, but we all went along with it because individuals can’t afford—nor get access to—the MLS. It was an irksome expense, but what could you do?
Now you can do something. You can go with a flat fee realty like TRELORA or try to get traditional REALTORs to play ball with you.
Listen to How Agents are Training Themselves
Here are a few of the scads of videos out there where agents are preparing themselves for a discussion about their commission structure and amount. Note that it isn’t called a discussion; it’s called an “commission objection.” What are you “objecting” to? Their request for 6% commission.
We welcome you to watch these videos and see how many minutes are dedicated to what you want vs what they want. There are tricks, tactics, psychological warfare, and other methods not to convince you of their value or that that your best interests are in their hearts, but rather to confuse you about the discussion. Some of these are six years old, which tells you how long savvy homebuyers and sellers have been wise to bloated commissions and were dreaming of flat fee real estate commissions long ago.
What am I Giving Up by Using a Flat Fee Real Estate Agent?
This is a common thought. If you are paying less, you are getting less, right? In most cases, that is true. With real estate in general, as mentioned, they have been overpaid for so long that you aren’t getting less, they have just been demanding more than they are worth. With TRELORA, we came from the traditional real estate side and we knew we could improve this for homeowners. You will not get any less care or get less for your home than with any other agent out there who promises the world because “they know the market.”
But don’t take our word for it, just read why our 3500+ customers have given us an overall rating of 5 stars. To sum up, some will talk about the savings (as they are substantial), but most everyone is talking about our knowledge and service. You can’t sell 500+ homes a year and not be amazing.
We average 37 hours with a client to sell their house or help them buy one. Over seven years, our agent teams average 37 total hours working to buy or sell a home. If we are doing less, why do we sell so many homes? Why are we rated so highly? If your friend, the traditional agent, is doing more, is it worth $15,000 more?
So let’s go back to those figures above:
Seattle: $772,729 Agent Fees: $23,181 / 37 hours = $626/hr
Denver: $502,986 Agent Fees: $15,089 / 37 hours = $407/hr
TRELORA would be $81/hr in Denver no matter the price of the home because ours flat fee commission structure is a fee, not a percent of your home equity.
When is the Last Time a Friend Gave you $15,000?
But my friend is a REALTOR…I have to use him.
This is the most expensive purchase you will ever have. You are planning to live there. Relax in it. Have parties. Raise children in this home and mark their heights on the pantry door jamb. Do you really want to give away $15+k just because you know them?
Friends are supposed to get you deals, not take you to the cleaners. Your friend owns a body shop, you expect to get parts at cost or shave the labor down a little. Not buy them a new car.
The issue will come down to this: you can give your $15k to a friend or you can use TRELORA, who offers a flat fee commission, and keep it.
Now tell us the truth: who really sounds like your friend?