Recent Transactions

   3.5% Commission or Less to Sell Your Home

Buyer Rebates of up to 50%   

   (1% Or Less to Us, 2-2.5% to Buyer's Agent)

Or More of Our Commissions   


Are real estate commissions too high, and are they rational?

The National Association of Realtors commissioned a seminal report in 2015 entitled, D.A.N.G.E.R. Report. The title is an acronym for, "Definitive Analysis of Negative Game Changers Emerging in Real Estate." In the report they say there is a 100 percent probability of "Commissions Spiraling Downward," and a 100 percent probability of a "Decline in the Relevancy of Agents." They further say there is a greater than 60 percent probability that the agent will be removed entirely from the transaction. Real Estate commissions in the United States are among the highest in the world. In the UK and in Sweden real estate commissions are 1.5%. In China, Hong Kong and Australia they are 2.0%, and commissions are 3.0% in Canada. We thought this NAR report was very interesting. We will e-mail you a copy of it upon request.

According to Carl Weisman, author of an excellent ebook, The Intelligent Home Seller, the California Association of Realtors did a study in 2002 (before the advent of website portals) that indicated the average listing agent worked about 20 hours per home. But if it takes each agent 30 hours of labor on a transaction and the total commission is 5%, split 50/50 between the buyer's broker and the seller's broker, each agent would be generating revenue of $417 per hour on a $500,000 property, $500 per hour on a $600,000 property, $625 per hour on a $750,000 property, $833 per hour on a $1 million property, $1042 per hour on a $1.25 million property and $1250 per hour on a $1.5 million property. If the transaction took 20 hours these hourly rates would be 50% higher. These rates seem high, don't they?

The Internet is revolutionizing many industries. In the past, the real estate industry had a monopoly on the information needed to research property transactions. But today many buyers and sellers do much of their own research, for free, online. They may have been involved in one or many previous real estate transactions through a job transfer or through investment property, and they do not feel the agent requires a huge commission to facilitate a transaction. So today more and more principals in real property transactions prefer to use a discount real estate broker or a discount Realtor. And many buyers are now asking for a commission rebate or a commission credit.

As video killed the radio star, as Netflix has done to Blockbuster Video, as Apple has done to the local music store, as Priceline and Expedia have done to the local travel agency, and as Uber and Lyft are doing to the taxi industry - the Internet could lead to a dramatic transformation in the commission structure in the real estate industry.

If we represent you when you buy a home, you will receive a rebate of up to 50% or more of our commission. A typical commission for a buyer's agent is between 2.0% and 2.5%, so a 50% rebate, equal to 1.0-1.25% of the purchase price, can save you thousands of dollars. The rebate is subject to your lender's approval.

If you choose us to list your property we will charge you 1% of the sale price. You will also have to pay a commission to the buyer's broker of approximately 2.5%. That's a total of only 3.5%! Some brokers may charge you 5% or more to sell your property, so our 3.5% commission could save you thousands of dollars. If you need less than 3.5% to make a flip work, ask us.

If you need a Flat Fee Broker or if you are a For Sale By Owner (FSBO) seller we can provide à la carte services and assist you with the disclosures and other forms required to close escrow. Let us know your budget, and we will try to work with you.

Cell/Text: 310-339-4593              E-mail: tomhallen@gmail.com             (click here to send us e-mail)