Why I List And Sell Homes and
Charge 1%...
Now, I'm sure you're thinking, "Why would a Realtor offer me his services at 1%?. It doesn't make any sense".
Here's why... and it's very simple. 28 years ago the MLS inventory was delivered in a book every two weeks, nothing was digitized, not even flyers. The MLS book was the real estate bible, only real estate agents had it, and searches took hours thumbing through the pages and taking notes. Marketing a home also took time -- I remember printing 200 photos of the same house and gluing them onto the flyers and marketing my listings door to door in the neighborhoods.
It was customary to advertise my listings and services in newspapers and real estate magazines, and negotiating contracts took time as contracts were printed and signed with live signatures and then FAXed -- there were no electronic signature platforms to use. Everything took time and was inefficient, and therefore very costly to operate as a sales agent.
Home prices in the East Bay averaged from $170,000 to $225,000... and back then charging 6% to sell a house made sense!
Forward decades later ----> Older, wiser, smarter
The Internet changed everything. Over time, the digital age streamlined everyting and and selling property became easier and less expensive. When the Multiple Listing Service became available to the public it was over for real estate professionals.
No longer were we in control of the real estate data, the consumer knew almost as much as we knew. Our industry became relegated to meeting buyers at property to pop the key out of a lockbox to allow access. Well, this is an extreme way to look at it this way, but structurally things became easier, faster, and less expensive to sell. At the same time, home prices quadrupled and the broker fee percentages stayed the same. Well, almost, but on average broker fees now are 5% to 6%! It's actually harder to find a seller willing to pay 6% these days.
Compare the difference:
In 1995
Selling at $225,000 X 6% = $13,500 in Broker Fees
In 2022 (peak of the market June 2022)
Selling at $900,000 X 5% = $45,000 in Broker Fees
With these numbers I don't think there's much more for me to elaborate here. Our commission earnings have out-paced most salaries in the Bay Area due to inflated real estate prices.
Obviously, my discounted model wouldn't be as successful in places like St Louis, Missouri or Des Moines, Iowa. With Bay Area real estate being so well-off, I can afford to cut a homeowner a break, and keep a smile on my face making a great living and retaining repeat clients.
As always, it's advisable to market your property on the Multiple Listing Service (MLS) as it's the best marketing tool to get your home sold. In doing so, you'd have to compensate a buyers agent if you decide to accept his offer. Most buyer's agents are accustomed to collecting 2.5% to 3%. Therefore the most you'd have to pay in broker fees would be 3.5%.
- 1% to my brokerage Flat Rate Realty and
- 2.5% to the buyer's agent's brokerage.
Saving The Best For Last ----> 1% Total
While on the MLS, if you were to accept a contract with my own buyer who's ready, willing and able through my marketing efforts or if you, seller, have your own buyer ready to purchase (friend, co-worker, family member) that does not have an agent representing them -- then the total broker fee will be 1% of the sales price (min $5,950) as there will be no need to compensate a buyer's agent.
I've researched many brokerages and I don't think there's a brokerage that has yet to compete with this.
If you have any questions you can always email or call me or if you'd like to schedule an appointment to meet, we'll schedule a time that works for both of us to meet... and as always, there is no obligation or pressure to list or sign anything with me. I look forward to helping you!
Best Regards 
John Kirkish / DRE #02070987
JohnKirkish@gmail.com
510-890-8028