The Old versus The New
Comparing traditional franchise real estate to Inman Park Realty, is very much like comparing an all-inclusive approach to one that is ala carte. Franchises have traditionally charged their sellers 6% of the sales price. Inman Park Realty is a flat-fee, $995, regardless of price.
The 6% traditional cost includes all MLS fees, home marketing and commissions for both sales agents. On a $650K sale, the 6% fee equates to $39,000. That is simply too much money.
An ala carte approach breaks down each element. For example, MLS fees are due on both sides of the sales equation with a rate tied to sales price. (.0018%) On a $650K sale, an MLS fee of $1,170 would be due.
In the franchise all-inclusive approach, the default commission given to the buying agent is 3%. Why are Sellers paying for the Buyer’s agent? It’s a long story, but there isn’t any reason why the Buyer’s commission needs to be a default. It shouldn’t be. Inman Park’s very low “Days on Market”, DOM, is the envy of the entire metro area. In Inman Park, there is no reason a Seller need pay the full 3%.
In the ala carte Inman Park Realty approach, home owners can set their own %. In 2016, every home in Inman Park sold with a 3% Buyers commission. Every home would have sold equally well if the commission had been only 2%. Sellers are simply flushing money down the drain in an all-inclusive approach. If the property is “move-in” condition and buyers are waiting for the listing to appear, why can’t sellers offer a 1% or 1.5% commission to agent who is negotiating against them? Why shouldn’t sellers try to save some of their money?
Every Inman Park Realty listing includes a $1K donation for the IPHA. The “Tip-out Program” is designed to help give back to the Community it serves without impacting current residents. IPR strongly believes real estate, being local by nature, should focus more on serving its Community and less on paying into millionaire Brokers who own national franchises.
Both sales approaches feature the usual trappings associated with real estate; yard signs, lockboxes, agent showings, CMAs, contractor coordination, negotiation, Zillow, Trulia, etc.
The traditional chain store approach will forever be 100% dependent on the capability of the local MLS; a company charted with servicing all of Atlanta’s fifty thousand sales agents. Inman Park Realty incorporates the local MLS within its own hosted environment. The IPR approach allows for supporting full-motion video, VR, and enhanced photography. Bandwidth restrictions within the MLS system severely limits what the chain store agents can offer.
IPR is committed to Social platforms as a means of communications and improving sales for every Inman Park homeowner. (/inmanparkrealty @inmanparkrealty) The franchise mentality has always been more or less, “every man for themselves”. (77 different Listing Agents last year alone)
A certain percentage of the population will always want an all-inclusive approach. And that’s great. But the bulk of us need to be more aware of how changing times and technology affect our bottom lines. It’s silly to lose money because; “that’s the way things have always been done”.
Would the ala Carte approach work everywhere? No. Only in highly sought after, well defined areas with a sense of Community can such an experiment be tried. So, if you live in Inman Park, and are thinking of selling, you owe it to yourself to find out if the ala Carte approach could work, save, for you.