Do you plan to sell your home? You’ll likely incur various costs during the sales process, including repairs, maintenance, and compliance certificates.
When you sell a home, real estate commission is among the most significant expenses you can face, which is why many sellers choose to list their properties as “home for sale by owner.” In Florida, the average real estate commission ranges between 5% to 6%, which can amount to thousands of dollars, depending on your property’s selling price.
However, when hiring a 1% real estate agent, such as Abode1, you only pay your listing agent 1% of your property’s sale price in real estate commissions. This article takes an in-depth look at what a 1% real estate agent is and why hiring one can save you money.
How Does a 1% Commission Work?
In the case of a conventional property sale, the listing agent and buying agent each take around 2.5% to 3% in commissions. You need to pay these commissions from the sale proceeds at closing. For example, if your property sells for $300,000 and the real estate agents take a total of 6% in commissions, they collect $18,000 at closing.
Now, suppose you hire a 1% real estate agent. In this case, your listing agent only takes 1% in commission, reducing the total commission that pays out at closing to 3.5% to 4%, depending on the buying agent’s fee.
As the seller, you might need to pay the buyer’s real estate agent the full fee of 2.5% to 3%. However, you have some bargaining power if you don’t have a contractual obligation to the buyer’s broker.
Watch the video below to learn more.
Abode1: Leading 1% Real Estate Company in Miami-Dade
Hiring a 1% real estate agent is ideal for sellers who want to save money but don’t want the hassle of listing as “home for sale by owner.” As one of the leading 1% real estate brokers in Miami-Dade, Abode1 offers a comprehensive range of realtor solutions to streamline the selling process and reduce your costs.
The sections below look at how hiring Abode1 can save you money and maximize the proceeds from your property sale.
When you list your property with Abode1, we indicate the commission amount on the MLS listing service as 1% to the listing agent (Abode1) and $10.00 to the selling agent. Therefore, your commission obligation is 1% plus $10.00. You have the option to negotiate with the buyer and their agent to pay a higher commision rate but the bargaining power lies with you, not the buyer’s agent. Even when you pay the buying agent’s traditional half-commission of 3%, the listing commission you save comes down to a substantial amount if a 1% agent lists your house.
Consider the example above, where the property’s selling price is $300,000 and the 6% commission equals $18,000. In this case, if you hire a 1% agent and the buying agent charges a commission of 3%, your total commission expense is $12,000 (4%). At this selling price, by hiring a 1% agent, you can save at least $6,000.
Professional Real Estate Marketing
When listing your house as “for sale by owner,” you need to take care of all the marketing yourself. Presenting your property in the best possible light can be time-intensive and expensive, and some sellers only place a print ad in the local paper to save costs.
However, when hiring Abode1, you get professional photos, a yard sign, 100 color brochure drops, and online listings, complete with floor plans and a virtual video tour. At only 1% commission, these marketing services provide plenty of bang for your buck.
Optimal Market Exposure via MLS
Abode1 lists sellers’ properties on Multiple Listing Services (MLS), a real estate platform that only licensed real estate professionals can access. By boosting your property’s visibility, this listing prevents overexposure to the market and increases the likelihood of getting a market-related offer within a relatively short period. This results in significant savings on marketing and relisting costs.
The Ability to Negotiate With the Buyer’s Broker
When using Abode1’s real estate services, you don’t have a contractual obligation to pay the buyer’s agent a commission of 3%, which some listing agreements require. When a buyer’s representative presents you with an offer, you can negotiate all the terms, including the buying agent’s commission. Abode1 also provides you with all the solutions you need to negotiate with and sell directly to home buyers, cutting out the middleman and saving unnecessary costs.
Pricing your property right is critical to ensure you get the highest possible proceeds without risking an extensive market period and overexposure. Abode1 will provide you with a comparative market analysis and help you assess your property’s value correctly.
Abode1: Maximize the Returns on Your Sale
Are you considering listing your property as “home for sale by owner” in Miami-Dade? Hire Abode1 instead. This leading real estate company provides a comprehensive range of solutions to help you sell your home at only a 1% commission.
With Abode1, your property gets maximum exposure on a prominent multi-listing service, and you retain the freedom to negotiate the buying agent’s commission. To receive a no-obligation quote, contact Abode1 at 786-733-1320 or complete the online contact form.
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