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Most commissioned real estate brokerages collect a commission from the seller equal to a percentage of your home's sale price. Although this percentage can vary, 3% is a common figure. An administrative fee, which can vary from $200 to $1000 is also assessed. Separately, the listing broker will require that a buyer brokerage commission be offered (often in the amount of 3%.) In total, the cost of this type of seller representation would be 6% plus administrative fees. At Spot, we'll list your home for free, and we won't charge you an administrative fee. However, we still require you to offer a 3% buyer-brokerage commission. In total, you're saving 3% of your home's sales price, plus saving the cost of admin fees. Depending on your home's price, this savings can be really big:
Home Price
Savings (really!)
$300,000
$9,000
$500,000
$15,000
$1,000,000
$30,000
You've worked hard to make your home look great, and perhaps your home has appreciated in value since your purchase. Why diminish your earnings by paying high commission costs? Enjoy this cost savings... pocket the money, save for retirement, or use it on the purchase of your next home!
Let's look at the cost savings another way. It's true that in the cost savings example shown above, a traditional agent charging 3% might include extra marketing (and spend extra labor hours) beyond what's included in the Spot Listing Package. But remember that Spot is full service, and we're ready to provide unlimited support and marketing on an a-la-carte basis. So, let's juice up the numbers a bit. A typical traditional agent (if they're not very efficient) providing a lot of support on a complicated real estate transaction might spend a whopping 20 hours. Plus, they might hold an open house, print some brochures, include a virtual tour, and place a few print ads. Spot provides the same services, so let's compare the cost of Spot with that traditional agent on a $500,000 transaction.
Cost Item
Spot
Traditional
Commission (3%):
$0
Admin Fee:
$300
Labor Hours:
$3,400
Open House:
$500
Brochure Printing:
$200
Virtual Tour:
$250
Print Ads (3):
Total Cost:
$4,850
$15,300
Spot Savings:
$10,450
So, even if you spend a lot on hours and marketing with Spot, you're still likely to save a lot of money. That's a lot of cash to put in your pocket, or use toward your next home purchase.