Sharpening the Pencil
There were 7 real estate transactions in Inman Park during January 2017. The exact same number of transactions as 2016. While one month isn’t enough data to forecast trends forward, we did want to take the opportunity to exam trends that still linger from the past.
January home sellers in Inman Park paid $57,481.00 dollars in commissions to the sales agents who represented their buyers. This is in addition to the commissions sellers paid to their own listing agents. But, how do we know this? It’s public record. Every seller paid a 3% commission to the sales agent who was negotiating against them over the terms and conditions of their sale. (If you think that is odd, you wouldn’t be alone)
It’s impossible to change the real estate industry overnight, but just maybe we can help bring about alternative thinking that questions the traditional chain-store format. Did the homes that sold, in under 20 days on market, really need to pay a full 3% sales commission? We don’t think so. There were 4 homes in January that sold while being on market less than 20 days. Those 4 sellers paid $46,644 in buyer’s agent commissions.
Inman Park is a very high demand area. For homes sold in less than 20 days, one can make the case a 3% sales commission wasn’t necessary. What if those sellers paid a 1% sales commission to their buyer’s agents, would their homes have not sold or sold with a considerably different time on market? With a 1% commission, sellers could have paid only $15,548.
The difference between sellers, whose homes sold in less than 20 days, paying a 1% commission rate versus a 3% commission rate is over $30,000 dollars. That is a lot of money. Why every seller chose to pay a 3% buyers commission is unknown. They also had the option of paying 2% or 1.5%. There is no such thing as an industry standard or a set fee.
At Inman Park Realty, we believe every home is unique and as such deserves strategic sales plan. If your home is in great shape, chances are and statistics will back it up, you don’t need to pay your Buyer’s agents a 3% sales commission. We believe home sellers should have the opportunity to pay everyone within the real estate sales process LESS, so they can KEEP as much of their own money as possible.