Home Prices are going down not up, and in today's world it's all about holding on to the money you already have. I will sell your home for 3%. 

Many who have bought and sold real estate through Realtors don’t understand why the commission charged for selling their property is so very high. After all, when a property sells for hundreds of thousands of dollars and the commission is tens of thousands of dollars, it seems like a lot of money when looking at the bottom line.

Like everything else in our world today it starts with the pyramid system. At the top of the pyramid lies the large real estate company. These companies, (aka) the broker provide space and training for salespeople called Realtors. This space and supervision costs a great deal of money in the form of license, supervision, and the use of company buildings, parking, real estate, taxes, insurance, utilities, advertising, and professional support services -- whether they sell anything or not. Like every good pyramid the income is derived from the bottom. Of course, some pyramids work better than others, but the end result is, you must feed the pyramid.

This cost to feed the pyramid is derived solely from commission paid by the seller for completing a sale transaction of their real property. This commission is generally divided into four pieces; they are the broker, and the broker’s agent representing the seller along with the broker and the broker’s agent representing the buyer.  Splits are arranged within each company and for each agent with different percentages and split arrangements for each office.

Realtors are independent contractors, and like everyone else must work very hard to be successful. Unfortunately, they must feed the pyramid. A typical commission plan in the South Bay is 5% total commission spilt equally between the selling and buying sides. As an independent broker without a pyramid, I can offer something more reasonable. I will sell your home for a 3% commission. Remember, buyers determine the selling price Realtors determine the commission structure.

Which of These Costly Mistakes Will You Make?

We all know that feeling when we make a mistake and wonder why. I have assembled a list of common mistakes that I have experienced in the course of my life. Some of these mistakes are my very own. The bad news, in real estate these mistakes can be costly. I have created three reports to assist you in completing your real estate transaction without having to ask why.

Most Common Mistakes Made by Buyers

Most Common Mistakes Made by Sellers (Selling Immediately)

Most Common Mistakes Made by Sellers (Selling After Approximately 6 Months)