A press release announces LA Market Real Estate introduces new process to sell property with zero commission to sellers in Los Angeles. That is about 6% saving for homeowners on the selling price who sell property with zero commission and that enables the sellers to price the property at much more attractive range.
Is the rise of the discount real estate broker the same as the move in the early 1990s to the discount stock broker business?
I ask because of the press release and interesting article in Reality Biz News, “In many real estate markets, real estate agents have had to change their selling methods for that 3-bedroom, 2-bath bungalow in California or condominium in Florida.”
There is fierce competition between boutique brokers, full service brokers, and traditional real estate agents.
Just as with stock brokers in the past, customers are saying they don’t need all the services provided by the real estate agents, and don’t want to pay for them. With stock brokers, customers didn’t want to pay for all the services including research. They just wanted to buy and sell stock.
Frankly, I’m surprised it has taken this long for real estate brokers to feel the heat. But, it is the advent of new technology that is causing the move away from the traditional commission rates.
Today, with today’s information technologies at work, buyers have great advantage with the internet as part of their tools to work with, when they chose to do so. In the past, buyers were dependent on the agents to search and find properties for them. But the majority of today’s buyers does their own search on the internet, and finds the properties that they like. Then contact the seller’s broker for more information, previews, and finally make their offer.
How much can a seller expect to pay in real estate commissions? There are no regulations governing commission fees, so they vary. In California, fees are 5 to 6 percent: half goes to the buyer and half goes to the seller. Commission rates vary; sellers can pay between 3 and 6 percent.
A boutique broker has a lower commission rate. Some real estate offices may offer a sliding scale commission of between 2.5 percent and 5 percent.
“Larger companies, such as Redfin, offer buyers lower commission rates than usual if they live in Washington D.C. The company cut their commission rates from 1.5 percent to 1 percent to attract more sellers to choose their company, when they sell their home.
Coal to Cash Homebuyers, Inc. is a real estate investor. We have always had zero fees, zero upfront costs, zero commissions, or anything else. We are here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! We give you just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 805-426-9988 to let us know what YOU need help with!