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How Real Estate Agents Traditionally Get Paid

Real estate agents work hard inside and outside of the office! However, they don’t get paid the same as people who hold classic office jobs. Instead of an hourly wage or a set yearly salary, real estate agents rely solely on sales commissions for their paychecks. That means each time they sell a house, they get a certain percentage of the price the home sold for. The commission percentage varies, but most agents around the country average about 6%.

Who pays the agent’s commission?

Since agents aren’t paid by a company that employs them, you might wonder where their commission comes from. In most cases, the seller pays commission to the listing agent and the buyer’s agent.  So, if a house sells for $500,000, a 6% commission is $15,000.  This amount normally comes from the seller’s proceeds.

Though it might seem like a relatively small amount compared to the home price, a 6% commission can be a steep added expense for sellers who are also being charged other closing costs. Is there any way to save on commission costs?

What is a low-commission real estate agent?

A low-commission real estate agent is exactly what it sounds like.Instead of the usual 6% commission, their rate is lower than the typical fee. In fact, they can save you as much as half of what you would normally pay an agent. That is a very significant savings.

Where to find a low-commission real estate agent

Of course, saving money on anything, especially on a large transaction such asthe sale of a home is appealing to most people. For those who would like to work with a low-commission or discount real estate agents, you can look for:

  • A discount agent who can get your home listed on the MLS and nothing more
  • A low-commission brokerage dealing solely in discount listings
  • A traditional, full-service real estate agent who has agreed to lower their commission for List Wizer clients

It seems like the choice is pretty obvious. You want to get the most for your money—an expert agent who can give you full service but at a more manageable cost.

List Wizer only works with the best agents and we want you to as well. We don’t want you to have to choose between inferior real estate services and high agent costs. You want it all—superior service and reasonable commission costs and we don’t think that’s too much to ask.

Wondering what the comparison is between List Wizer and your other options? We’ve made it easy to see:

Our math only adds up to one thing for you—savings. Savings and a professional agent who will work hard for your interests. If you think you’d like to work with one of our agents, please don’t hesitate to contact us.

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The Difference Between Real Estate Agents and Low-Commission Agents

That’s a very important question. We understand that most buyers and sellers want to save money where they can, but it can come at a price.

When you have a traditional agent working for you, they are helping you with every detail from start to finish. That means anything you need to buy or sell your home—strategic marketing, high quality photos, smart listings, price negotiations, legal paperwork, scheduling inspections and closing, and other important components in this complex process. In return, the agent gets their typical percentage as commission.

Going with a low-commission or discount brokerage can be somewhat of a “you get what you pay for scenario”. They offer to list your home on the MLS (something only a licensed agent can do) but most often not much more. Depending on the business, there can be few to no additional services offered, leaving a seller somewhat high and dry, having to navigate the process alone. Some people choose to go this route, but they often end up paying for it one way or the other in the end.

It a tough and very real decision sellers face–do you pay more, or do you go with getting less help?At List Wizer, we can help make that decision a lot easier. We want to help you get all the services you need and a much lower rate than you would typically be charged. Here’s how we work it out:

Listwizer Comparison Chart

As the chart shows, if you sold a house for $300,000, you would end up paying $18,000 to a traditional real estate agent. With the way we structure our business, you would pay only $12,000 in fees, saving you $6,000! That’s a savings you wouldn’t want to ignore.

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How Listwizer Saves You Money

How Listwizer Saves You Money

We’ve touched on this a bit in some of our other blogs, but we wanted to give you a more detailed look at just how our business model operates. We tell you we save you money on full-service agents, but how does it work?

We’re glad you asked! To start off, we hand-pick the best full-service real estate agents from major national brokerages to work with us. We check out their track record and what their previous clients had to say about them. Once an agent agrees to the commission rate and starts working with us, we begin pairing them with clients like you. However, we still monitor reviews from their clients to make sure they are maintaining their top-rated status.

Since we’re partnering you with the best of the best, it means you are going to get full-top notch agent services. They’ll take care of everything you need to buy or sell your home—including effective marketing strategies like strategic listing price, for sales signs in your yard, and expert price negotiating– and they’ll do an excellent job at it.

Your agent will be with you through the whole process, offering expert advice and support based on current data and past experience. They’ll make sure that everything they do is in your best interest.

Your agent’s commission deal with you isn’t made known to the other agents, sellers, or buyers. They can’t use it as a basis for low ball or aggressive price negotiations, helping ensure you buy or sell at a price that is right for you.

With so many businesses claiming they can save you money, most savvy people today are wary of what to believe. That’s why we wanted to show you plainly and clearly how we work and how it affects buyers and sellers who work with our agents. Full transparency—when you look through, all you’ll see is hard work on your behalf and more money in your pocket.

Contact us and within 24 hours we will set you up with a free consultation and market analysis so that you can see what you and your agent will have to work with.

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Real Estate Roundup

Active Home-Building Industry Will Lead to More Demand for Warehouse Space

Strong consumer spending and the rise in housing construction activity are currently the prime factors for the incredible rebound of the U.S. industrial real estate sector, and experts say as home buying continues to increase, so will demand for warehouse space. — From NRE Online

To Buy or Not to Buy: That Is the Developer’s Question

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