THERE IS AN ALTERNATIVE TO HIGH REAL ESTATE COMMISSIONS! You can get experienced, full service, expert real estate service, sell your house for its full value, all at a savings of thousands of dollars! All you have to do is find the real estate broker who is willing to provide that service at a discount. If you live in the Denver Metro area or Colorado Springs there is such a program. The program was designed sellers,just like you, as they asked questions or gave him ideas. The resulting flat fee real estate program has worked successfully since 1996. The broker that created this, Don Stark's real estate and business background allowed him to work with his clients to create a discount real estate program that to date has saved many million's in real estate commissions to Front Range home buyers and sellers.
When you look at the current home buying process. you may realize if the seller could put themselves into the process at some central, viable catalogue, the sellers could save a lot of money. This central catalogue is the multiple listing service (MLS) as every buyer uses the MLS sooner or later. Buyers either start with the MLS or during their house hunting, they refer to the MLS to confirm values of homes they find interesting. The MLS HAS BECOME THE FUNNEL THAT INFLUENCES ALL HOME BUYERS.
If you are willing to rely on the MLS and forego advertising, you will save thousands of dollars when your home sells. With the advent of the internet and computers, real estate information has become more universal but what is not known is every reliable real estate web site gets it's information from the MLS. The other real estate web sites, Realtor.com, Zillow, Trulio, etc all buy the data from the local MLS's. Real estate is one of the top five things people search for on the internet and the web sites use this activity to sell advertising. One group that buys this advertizing is real estate agents. The web sites offer "enhanced sites" to real estate agents where they buy a zip code to promote themselves using your home as a way to attract buyers. These buyers often buy homes other than yours. The agents know buyers seldom buy a house this way but buyers frequently find agents this way. These "enhanced sites" are expensive. The cost varies by the zip code and how many brokers want to advertize in that zip code. Thirty years ago, as a company owner, I used to spend $35,000+ a month to advertize, now that cost is born by the individual agent as the internet has replaced the newspaper. Our major savings is not having to spend $35,000 a month in advertising, $6,000 a month in rent, $20,000 a month in staff and $2500 a month on leased equipment.
There are lots of high tech tools that save real estate agents time and money but that savings has not been passed onto the consumer because of the agents self-promoting advertising costs have increased and the production per agent has dropped. Real estate commissions are high because of real estate franchisors. The franchisor collects a share of the commission, therefore they want a high commission. Secondly, until we had franchisors, brokers trained their agents. Franchisors found out the best thing for the franchisee was to recruit new agents as new agents had an average of 3 customers waiting for the new agent to get their license. Consequently, we now have a lot of struggling agents. The average agent sells about 5 houses a year and earns $60,000. They are completely self employed which means they pay almost 16% in SSI tax plus they have to do all of their own promoting which could be close to 50% of their income. Bottom line, there are too many real estate agents. Since home sellers only sell every 4 or 5 years, they assume they must pay the high commissions charged by the agents they know. The sophisticated sellers may find a flat fee or discount real estate broker.