The 8% Real Estate Commission

I believe to sell a home or condo in Arizona’s current real estate market, you must be aggressive.  That means implementing a two prong sales approach.  The first step is to price the property below comparable homes around you.  Then, in combination apply my 8% Real Estate Commission sales strategy.  I believe the traditional 50-50 equal split does not benefit the seller.  Instead, the Broker who brings the buyer should be compensated with a 5% commission, leaving 3% to the listing Broker. The reality of today’s real estate reveals competition.  When you place your Arizona home on the market, you are competing with many other motivated sellers.  The biggest being New Home Developers.  These new home sellers are driven to sell.  In addition to providing buyers with outrageous incentives, they are also prompting Buyer’s Brokers to bring buyers through offers of generous commissions, some as much as 10%.

If you are under the impression that the listing agent will bring you your buyer, it is time for you to consider the facts.  Over 85% of all home sales are generated by Buyer’s Brokers.  This is due to many factors.  One important factor is the buyer’s desire to be represented.  Dual Agency (Broker representing both the Buyer and Seller) can be difficult.  Increasingly, Brokers and experienced buyers discourage this practice of representation.
Another factor is the statistics of the Arizona real estate market.  There are over 40,000 Arizona Realtors all working to find buyers in the Phoenix area.  The odds are better that one of them will find you a buyer, compared to your single listing agent.  The trick is to come up with a way to encourage all those agents to show and promote your house to potential buyers.  A 5% Buyer’s Broker commission will do just that – entice Arizona Realtors to focus on your property.
When you are ready to sell, you must consider the services of West USA Realty.  Experience, Integrity and Education will make a difference.  Give me a call today – (623) -979-5962.
Carl Chapman