We often hear 0% Commission in relation to the real estate market. Commission free is another term often used by the industry. There are different types of brokerages or businesses that promote 0% Commission as either an a al carte offering or as their main product offering. Does this option even make sense for the consumer or is it another gimmick that has no true value in todays market. It may help to compare 0% Commission real estate to the more traditional methods of selling a home.
What Is 0% Commission
There is nothing complex about 0% Commission which essentially means that no there will be no commission paid to any parties to a real estate transaction. Traditionally, this would occur when a homeowner does all the work themselves as “For Sale By Owner”. An MLS listing that does not cooperate with other agents or brokerages or offer commission is normally referred to as a Flat Fee MLS Listing or a Mere posting. With recent changes to the industry as a result of the competition tribunal, 0% commission listings are appearing on the MLS more often. If there is no commission involved in an MLS transaction, the only way for an agent or brokerage to earn any revenue would be to take a flat fee up front in lieu of commission. The reality is that many of these transactions eventually involve a commission arrangement with a buyer agent. It would be important for a seller to understand the true cost of selling their home in an active market without offering commission to realtors who bring the buyers that will eventually buy the home.
Who Offers 0% Commission
There are different types of brokerages or private businesses that offer 0% Commission services to those looking to sell their home. Individual realtors may also on occasion offer commission free packages on their advertising . Usually, these realtors belong to independent or “no name” brokerages that offer discount services rather than a reputable brokerage who normally do not allow their sales representativess to list properties that do not fully cooperate with other brokerages at the industry average. It is more common to find a marketing company with a brokerage license that exclusively focuses on this type of business rather than a full service offering. You can definitely expect the commission to be replaced by fees that may increase as additional services are included.
Does 0% Commission Cost Me More Than Full Service
You would assume that 0% Commission would be the cheapest option available when selling your home. In fact, it can be argued that it may cost more overall even when compared to a full price realtor charging 5% commission. The commission offered on a listing has a very important role in selling your home because it motivates cooperating agents to find a buyer for your home for which they will be rewarded. When you remove this factor from the equation, the sales process is greatly damaged by reducing the number of potential buyers that might potentially make an offer on your home. You will be left with bottom feeders who are only looking for a deal because they know you will not be paying commission.
Evusto Compared To 0% Commission
Evusto is a much better option than 0% Commission or other Commission Free services on the market. People are often mislead by these services to believe that they can sell their home without paying anything when in fact these commission free services would not be around unless they were making money from you. Even worse, for whatever amount you do pay, you don’t get much in return except an MLS listing which does not have much value on its own. Evusto provides you with an experienced realtor who will use their market knowledge to effectively sell your home. A commission free service will charge you an upfront fee before they even list your home. If your home does not sell, you still pay for the service. An Evusto agent only gets paid when your home sells at a price you have decided upon. Commission free services usually do not offer premium services with their flat fee. We include professional photography, multiple board listings and more which all contribute to getting more buyers to consider your home. It is important to find the balance of low commission combined with a level of service that will help sellers achieve the best possible sales price for their home. This is where Commission Free services fail in offering home sellers a cheaper option when selling their home in today’s market.