Fee Based Realty Service Blogs - Join The Discussion

Today, New Option Realty opens for business. New Option was founded in an effort to help consumers save money when buying and selling real estate. We offer a new model for buying and selling real estate. The traditional model for real estate agents to earn money isn't very transparent, so let’s explain it briefly. If you've bought or sold many homes, and took the time to look at the numbers at closing, you're aware of how traditional real estate agents earn a living. A typical real estate transaction pays 3% commission to the seller's agent and another 3% commission to the buyer's agent. Go look at past closing documents you may have and you can see the actual amounts. In some cases, the amount a real estate agent earns is equitable to the amount of work they put into the transaction. Often however, the money earned equates to hundreds of dollars an hour, and can even be in excess of a thousand dollars an hour for work performed. The flipside of this is an agent may perform work for customers that never buy or sell real estate. This is time they spend while earning no income for the effort. The commission model spreads this out, with the individuals buying and selling real estate overpaying so that the agent can afford to spend time with those that do not. While this is a fine model that is acceptable to many people, there should be a better option for people that are confident they will be buying or selling property. Our fee based approach is just such a way. Like most other service providers, as we work for you, we bill you for the time we work; if you don’t require a lot of assistance, you won’t pay much. If you require a lot of help, you will pay more, but often still less than under a commission model. Being that the industry is built on the commission model, we still suggest if you are selling your home that you offer a commission to the buyer’s agent. If you are a buyer, when we represent you, we will receive the commission as the buyer’s agent and then pay you that amount.