Most people aren’t selling their home as an act of charity. The goal is ultimately to make money off the sale – and as much of it as they reasonably can.
Yet too often, the thing homesellers focus on as the way to maintain their equity is the listing price – despite ultimately having little control over what the homebuyer will feel comfortable paying.
Saving your equity means more money to spend on the things you love – your family, your goals, and your future house as well.
Here’s an alternate (and more effective) way you can be the superhero of your home sale – and save your equity.
Here’s why current agent commissions don’t make sense
There’s a prevalent belief that when it comes to agent commissions, “you get what you pay for.”
But here’s what’s actually happening to people who pay the standard commission fee: you don’t get what you paid for, because brokerages are charging the same price they always did despite modern efficiencies making it easier to sell a home.
In other words, with a typical Realtor commission rate you’re actually getting a lot less than what you paid for.
Consider the changes we’ve seen in the past 20 years that have redefined the real estate industry:
- Realtors don’t need to carefully organize a collection of property binders for you to go through in person if you’re buying a home
- Realtors don’t need to call around to other brokerages to find out which homes are on the market
- Realtors don’t need a Rolodex of potential buyers in order to sell your home – because any potential buyer can view your home instantly on sites like Zillow or Trulia
- The internet and the rise of apps has made it easier than ever to run comps and accurately price a home
- Digital calendars and smartphones ensure that allowing buyers into homes is a quick and easy process
- Most of the marketing for open houses is done automatically through sites like Zillow and Redfin – no need to mail a notice to the local newspaper
In short, while listing a home may have required 3% of the home’s value 30 years ago, today real estate is an industry that has simply been stubborn about passing on savings to the consumer.
After all, advancements in technology normally lower prices. In 1980, the average computer cost $1,500-$3,000 (accounting for inflation, that’s the equivalent of $5,500-$10,900 today). In other words, it was a high-end luxury product – not one the average consumer could easily purchase.
Not only can you get a $200 laptop today (the equivalent of $55 in 1980 before inflation), – it will run better, be lighter, and do much, much more than a computer from the 1980s.
Hopefully, it’s obvious now why modern brokerages like Trelora and Houwzer (both part of Newfound) offer 1% listing fees to home sellers (while recommending 2-3% for the buyer’s agent).
The cheapest way to sell your home is also the best way: Trelora has a 4.9/5 star average rating from thousands of reviews across multiple platforms. It’s not that they’re leaving out important services – they’re simply handing back the savings to the consumer.
Save your equity: what 1% Realtors offer
An agent is an important part of the home-selling process. Unlike computers – which, when new, are fairly standardized and are unlikely to have many issues – homes are complex, unique systems. There’s a lot more financial risk involved if you mess up this transaction.
So it makes sense to not do away with the agent relationship – they’re there to protect you. But why commit more of your profit to it than you have to?
Trelora offers a 1% full-service listing fee, with 2-3% recommended for the buyer’s agent. Compared to a traditional 3%-3% commission structure, sellers could save up to 50% on commission fees.
For a $600,000 home, that’s a potential savings of $18,000.
When you opt to save your equity when you go to sell your home, you open the door to using your money for the things you really need.
Trelora’s listing services include:
- Expert agent guidance
- Home Valuation
- Listed on Zillow & MLS
- Professional Photography
- Yard Signage
- In-Person Consultation
- Social Media Marketing
- 3D Home Tours
- Professional Marketing
Want to chat with a Realtor about what your home is worth – and how much you could save by working with Trelora?
(it’s free to chat, and there’s no obligation!)
The difference $10,000 can make
Many sellers are able to save $10,000 or more on listing fees thanks to the 1% listing fee (on average, clients save $12k with us).
- If your next home has a loan amount of $300,000, consider this: $10,000 can buy you three mortgage points, or .75% off your rate. That’s enough to lower your monthly mortgage payment by $150 every month – ultimately saving you $50,000 over the lifetime of your loan.
- Not every home is going to look the way you want it to look: $10,000 can pay for mid-range kitchen or bathroom remodeling.
- Sometimes it’s easier to get deals on homes that need a bit of fixing up. It might be easier to say yes to a house that needs $8,000 in roof repairs when you know you’re saving $10,000 on listing commission fees you expected to pay.
- The average move costs about $1,300, though it can cost as much as $6,000 to move if you are a larger household and are moving cross country. When you save on commission fees, it’s easier to budget for all the costs involved in leaving your home.
- Around 20% of parents say they’re saving money for their children’s college education. An extra $10,000 goes a long way.
More than half of American families didn’t take a summer vacation last year. With the money you save thanks to Trelora’s 1% listing fee, you can invest in more family time – whether that’s Disneyworld or a camping trip.
Be a hero, save your equity
You don’t need to wait for the next Marvel movie to come out to have your superhero moment. By saving commission fees when you go to sell, you’re saving valuable equity you can put toward the things that really matter – whether that’s your next house, family time, or simply savings for a rainy day.
- Save you an average $12,000 with their 1% commission Realtor
- Save you an additional $2,500 if you buy your next home with them
- Negotiate you a great deal for your home
- Beat up the bad guys
- Is not known for saving you money when listing your home
Want to take the next step in saving thousands of dollars with a 1% listing fee?
(it’s free to chat, and there’s no obligation!)
Mari Rogers is an experienced content manager specializing in real estate. She provides valuable perspectives on the latest trends and news in the field. In the moments she’s not imagining the possibilities of every derelict property on Realtor.com, she’s hanging out with her longtime (feline) companion Olivia Benson.