For as long as one can remember, real estate has always been the same.
When you sell your home, your listing agent and the buyer’s agent typically each pocket up to 2.5 per cent of the final sales price in commission, both of which, as the seller, you pay for.
With the average price of a home in Ontario hovering around $1,000,000, according to the Ontario Real Estate Association, that means roughly $50,000 will be paid out in commission upon the completion of the sale. That’s not insignificant and it’s worth questioning why we still do it this way.
“When something has been practised for decades, it becomes an anticipated cost — almost like a tax — where people have come to accept it,” explains John Martino, founder and CEO of New Era Real Estate.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
“With the average agent selling two to three homes per year, the volume isn’t there, so we assume that’s why they want to capitalize as much as possible on the few deals they close.”
Martino thinks it’s important for homeowners to understand that, because a traditional agent’s commission is tied to the sale price, the cost goes up as home prices rise, even though the job and work involved does not.
“Currently, home prices are at such a high that you simply can’t justify writing your agent a cheque for tens of thousands of dollars, especially in a hot market where homes sell in a week,” he says. “That really doesn’t sit well with us, which is why, no matter the price of the home, we charge a flat fee of $5,900 for full service, allowing our agent to focus 100 per cent of their attention on the client and not on their commission.”
Of course, breaking the cycle of longstanding misconceptions in the real estate industry is a tall order, but Martino certainly seems up to the task.
“A lot of people will think our flat fee will be a representation of the service provided and that’s simply not the case. We understand some brokerages have used a flat fee in the past but with that came the demise of full service,” he explains.
“We continuously prove ourselves deal after deal. We give people a better option while selling their home, saving thousands of dollars and not sacrificing the service they want.”
Martino believes that by staying true to New Era Real Estate’s core values and continuing to provide exceptional service while saving homeowners thousands of dollars, more people will become aware of the different options available to them.
“The problem is clear to us — commissions are out of control and the job done by an agent doesn’t justify these egregious commissions. With that said, buyers and sellers do not want to jeopardize the full service they have come to enjoy,” he says.
“Our solution is maintaining the integrity of the full service everyone loves, but at a fair flat fee. It doesn’t matter if your home is $500,000 or $5 million, we still only charge $5,900 for full-service real estate.”
Step into the new era of buying and selling and see how much New Era Real Estate can save you — visit online or call 416-508-9929.
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