by Thomas Harrington
If you're someone looking to sell a property and wondering how you can save on real estate agent commissions, there's a good chance you have discovered there are two real options for you. You can either sell your home yourself, also know as Sale By Owner or FSBO, OR you can list your home with a full service, low commission real estate brokerage.
Today I'm here to explain the difference between these two types of real estate brokerages, and so you can understand what we at REVERE may be able to offer you over the other guys.
I'll preface this quick article with two things. For one, I am a real estate agent at a full service, lower commission brokerage. SO I am perhaps a bit biased to the advantages of what our services can do for you. Second, I'll probably be the first REALTOR® you hear admit that it is possible to sell your home yourself. However, this involves a significant amount of "rolling up your sleeves" as the seller and from my experience sellers typically find the process more overwhelming than anything, and often do not see as much success with that model as they may be led to believe.
Everything from showings, to negotiations, contracts, paperwork, closing, and conveyancing will be your responsibility. In my experience, Selling By Owner really only works particularly well for those who are extremely well versed in the real estate transaction process, or have worked/work in the industry directly (ie; builders, flippers, investors, etc).
Without further ado, here are the 5 key differences between selling your home by owner, and selling your home with a Full Service, Low Commission agent or brokerage.
Without getting too much into "how the sausage is made" it's important to mention that both the types of companies we're talking about today are both Real Estate Brokerages. At the fundamental level, they will be vaguely similar companies and licensed by the same boards and regulatory bodies. The main difference comes down to what types of various real estate services they offer and the amounts that they charge.
The difference between REVERE and a sell by owner brokerage is that we are a Full Service agency where we are still your agent and represent you the seller, and more importantly work with you throughout the process and in your best interests.
When you buy a “sell by owner package” from another company you are effectively just buying a listing off of that company. Without getting too technical, a sell by owner package is actually called a “mere posting” contract or a “contract for posting without representation” - key word there is WITHOUT - meaning that with a mere posting you are only represented in a limited capacity by that brokerage.
With our company, you are not showing your home yourself. We schedule all showings for you, and have systems in place to get feedback and follow up with any of those potential viewings.
Buyers get the comfort of a private viewing to truly view the home with their agent
Most importantly you get the convenience of showing with a traditional agent where a keysafe is provided, this means you don’t have to adjust your schedule to allow viewings
We are a truly full service brokerage, meaning we are there from the beginning to the end of the transaction and assisting you throughout.
Conversely, a mere posting listing you simply purchase a listing from them, meaning once your home is listed on the market, you’re for the most part on your own and representing yourself. Its still possible to sell your home yourself, but it does involve some work, time, etc on your end
With us we provide a comprehensive, start-to-finish, listing package. This means we're there for the initial consultation, pricing of the home, getting ready to list, preparing the listing, showings, feedback, offers, negotiations, conditions, closing, conveyancing, and possession day and transfer of keys to the next owner of your property.
One way where we are actually the same as traditional agents; we are paid at closing from the proceeds of sale. Meaning you only pay commissions when the home actually sells.
Conversely, many other fsbo companies etc will have an upfront charge. Essentially the success of their business model is based on getting as many listings as possible and charging that upfront fee, as where our company’s success is based on actually selling your home.
Furthermore I should mention there is no upfront charge or cost to list with us!
To me one of the biggest differences is the personalized service we provide. You don’t have to call any 1-800 numbers to get ahold of someone.
If you call me the cell phone sitting beside me on my desk as I write this will ring.
We are boots on the ground, local agents who work in the area actually seeing and selling homes.
Conversely, some larger sell by owner posting companies have departments that work almost entirely from an office and may not have as much front end experience dealing with the public in terms of real estate.
So there you have it… we hope these 5 key points help you better understand the different options you have when it comes to listing your home. If you're wondering what your home may be worth in the current market, or if you have questions about the home selling process, please contact me and I will get in touch!
Hi! I'm Thomas and I'm your Low Fee Edmonton Real Estate Professional. Early in my career I realized that the methods of much of the realty industry were extremely dated and charged outrageous commissions. I chose to make a move that allows me to better serve clients at a much more reasonable rate. I am committed to saving every client thousands on fees in every transaction, buy or sell. You can see what my past clients have to say about selling with me below!
© 2020 Thomas Harrington - REVERE Real Estate
Information Courtesy of Thomas Harrington, Associate Broker/REALTOR® at Revere. Not intended to solicit buyers or sellers under contract REALTOR® , MLS® , and REALTOR.ca are property of the Canadian Real Estate Association. Information deemed reliable but not guaranteed. Commission savings are based on a commission of 7% on the first $100,000 and 3% on the balance. "Saving thousands on commissions" is based on our 1% lising fee comparaed to the traditional costs of 7/3 or 3.5/1.5. All commissions may be subject to a minimum fee. Our packages are only for REVERE as the listing brokerage and do not include renumeration to be paid to a buyers agent, if any.
Average savings of $4800 is calculated by comparing actual listing commissions paid on 1% or flat fee packages to a traditional commission of 3.5% on the first $100,000 and 1.5% on the remaining balance of the sale price + GST
Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and indentify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®). Our 1% listing commissions are subject to minimum charges for homes under $300,000. 1% fee may not be available in all regions and may vary, ask us for details.