For as long as one can remember, real estate has always been the same.
When you sell your home, your listing agent and the buyer鈥檚 agent typically each pocket up to 2.5 per cent of the final sales price in commission, both of which, as the seller, you pay for.聽
With the average price of a home in Ontario hovering around $1,000,000, according to the Ontario Real Estate Association, that means roughly $50,000 will be paid out in commission upon the completion of the sale. That鈥檚 not insignificant and it鈥檚 worth questioning why we still do it this way.
鈥淲hen something has been practised for decades, it becomes an anticipated cost — almost like a tax — where people have come to accept it,鈥 explains John Martino, founder and CEO of .
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鈥淲ith the average agent selling two to three homes per year, the volume isn鈥檛 there, so we assume that鈥檚 why they want to capitalize as much as possible on the few deals they close.鈥
Martino thinks it鈥檚 important for homeowners to understand that, because a traditional agent鈥檚 commission is tied to the sale price, the cost goes up as home prices rise, even though the job and work involved does not.
鈥淐urrently, home prices are at such a high that you simply can鈥檛 justify writing your agent a cheque for tens of thousands of dollars, especially in a hot market where homes sell in a week,鈥 he says. 鈥淭hat really doesn鈥檛 sit well with us, which is why, no matter the price of the home, we charge a of $5,900 for full service, allowing our agent to focus 100 per cent of their attention on the client and not on their commission.鈥
Of course, breaking the cycle of longstanding misconceptions in the real estate industry is a tall order, but Martino certainly seems up to the task.
鈥淎 lot of people will think our flat fee will be a representation of the service provided and that鈥檚 simply not the case. We understand some brokerages have used a flat fee in the past but with that came the demise of full service,鈥 he explains.
鈥淲e continuously prove ourselves deal after deal. We give people a better option while selling their home, saving thousands of dollars and not sacrificing the service they want.鈥
Martino believes that by staying true to core values and continuing to provide exceptional service while saving聽homeowners thousands of dollars, more people will聽become aware of the different options available to them.
鈥淭he problem is clear to us — commissions are out of control and the job done by an agent doesn鈥檛 justify these egregious commissions. With that said, buyers and sellers do not want to jeopardize the full service they have come to enjoy,鈥 he says.
鈥淥ur solution is maintaining the integrity of the full service everyone loves, but at a fair flat fee. It doesn鈥檛 matter if your home is $500,000 or $5 million, we still only charge $5,900 for full-service real estate.鈥
Step into the new era of buying and selling and see how much New Era Real Estate can save you — visit or call 416-508-9929.
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