It Doesn't Have To Cost 6 Percent To Sell A Home
North American Precis Syndicate
Technology allows real estate agents to focus on building a strong core business. (NAPS)
(NAPSI)—If you're thinking about selling a home, you may have wondered: "What,
really, does a real estate agent do to earn a 6 percent commission?"
In the past, real estate agents had to scour literal books of listings and
drive clients around to see listings to make sales. But today's real estate
process is much simpler—and increasingly digital. According to a 2017 study
from the National Association of REALTORS®, 44 percent of home
searches now start online. And as the search process moves online, almost all
of the paperwork has, too, allowing agents to handle more business even more
So if everything's easier now, why are most agents still charging 6
It comes down to the time and money that agents spend finding new clients.
"Many agents still find most of their business by cold calling, sending
mailers or knocking on doors," explains Ben Mizes,
CEO of online real estate brokerage Clever Real Estate. "The time it takes
agents to find customers puts a floor on how low they are willing to go on
Clever works nationwide to solve this problem by matching customers with
local Partner Agents, who sell homes for a flat fee of $3,000 or 1 percent in
listing commission. Clever is part of a growing trend in the real estate
industry; discount firms like Redfin now operate in
many U.S. metro areas and even local brokerages are increasingly discounting
their rates. In a 2017 article, The Washington Post estimated that average
commission rates nationwide will soon fall to 5 percent as agents compete
more aggressively to win business.
Tech-focused entrants to the discount real estate space have the potential
to accelerate the change. Unlike traditional brokerages, which expand one
city at a time with local brick-and-mortar offices, Clever partners with
agents all over the country.
Mizes says, "We have a full-time team dedicated
to recruiting and vetting top-performing agents from major agencies. They
provide the exact same full service that a top agent usually offers, but when
you come through Clever, they do it for our competitive prices."
Steve Huffman, a Keller Williams broker and
Clever Partner Agent in Atlanta, says that discount prices don't stop him
from providing a quality, full-service experience for his clients. "If you do
a good job with discount clients, they can refer friends, and you have buyers
who will call your yard sign," he explains. "The more listings you have, the
more exposure you have."
Luke Babich, Clever's
Chief Strategy Officer, explains why it's a win-win: "Our Partner Agents can
focus on doing what they do best: selling homes. Meanwhile, the average
customer saves $9,000 in commission."
Among the emerging business models that are shaking up the real estate
industry, tech-focused brokerages like Clever differentiate themselves by
being human focused, too. "Real estate commissions are ready to be
revolutionized," says Babich. "But we're selling
homes the same way that they've been sold for the last half century—with
great, attentive, professional agents."
With dramatic changes in the real estate industry—which some have said
threatens to displace real estate agents—tech-focused brokerages like Clever
differentiate because they are agent focused, too.
"In the end," concludes Huffman, "you're not losing money because you're
gaining more clients."
To learn more about the ways that technology is changing the real estate
industry, visit https://listwithclever.com.
"It doesn't have to cost 6 percent to sell
your home. New startup @ListWithClever aims to make
selling a home cheaper nationwide by empowering agents, instead of replacing
On the Net:North American Precis Syndicate, Inc.(NAPSI)