What is #47MAX and #CommonSenseCommission?
Dated: February 7 2019
This one is going to be wordy, but stick with it and you’ll get some good info.
Why do we use the hashtags #47MAX and #CommonSenseCommission?
4.7% maximum commission. That’s 4.7% total MAX commission. Not a penny more and with no extra fees. If you also use us to purchase a home, we will lower that total commission on the home you are selling to as little as 4%. Also, we are variable rate agents. That basically means if the buyers come to us without an agent, we won’t charge you the additional 2.7%. The way we structure our commission is just COMMON SENSE! Why pay 6-7% in todays technology based world.
A little under 2 years ago we made a promise to ourselves to never charge over 4.7% TOTAL commission. The 4.7% can be confusing to some for a couple of reasons. The first and most common reason it’s questioned is because it seems most consumers do not understand what a standard commission is or how it works. It is popular belief that the standard commission a home seller will pay a Realtor to sell their home is 6%-7% on average. This is pretty accurate as many of the “big box” brokerages have a minimum required commission that their agents have to charge, usually 6%. The “total commission” is then split between the buyers agent and the sellers (listing) agent.
The standard pay out for the buyers agent is 2.7% of the 6%. Which leaves the sellers agent keeping the remainder 3.3%. When the sales price reaches closer to the million dollar mark these numbers will start to decrease. A typical commission pay out for a buyers agent on a million dollar home can be 2%-2.5%. Some sellers ask if the 2.7% buyers commission can be reduced in order to save money. While it’s understandable to question this, from my experience reducing the buyers agent commission below 2.7% will cause some agents to purposefully avoid showing your home. This is completely unacceptable! But it happens. I have been in classes with agents who have admitted that they will try not to show “low paying” listings. Some agents have even set up their clients MLS search criteria to only produce results with homes paying 2.7% or more. THIS IS THE EXACT TYPE OF ATTITUDE THAT GIVES THE REALTOR PROFESSION A BAD NAME. Unfortunately these agents clients will probably never be the wiser. They’ll never know that the home that could be their dream home was never even an option to them because of their agent. To be clear, it is my opinion that this type of thing is not the norm.
Back to the 4.7% MAX. The Shurtz Team is part of a brokerage that allows us to run our business the way we choose to with no minimum commission requirements. Additionally, the Worth Clark Brokerage commission split between broker and agent is an unusual split that allows the agent to bring home more money to their family than the agents with the “big box” brokerages all while saving the client money.
Bottom line. We can charge less in commission and still bring home the proper amount of money to our families. It’s a win win for everyone!!! Please ask us more about it. We love talking about it and are proud of our structure.
Transparency is key!!!