Frequently-Asked Questions.
Q: How can you guys make a profit
at 4% when everybody else charges up to 7%?
A: There are three reasons,
really. First of all, the commissions from
our listings aren't split so many ways. At
our competitors, your listing is taken by
a salesperson who must split commissions
and/or pay desk or other fees to a broker
to maintain licensure. At MWRealty, on the
other hand, your listing is taken directly
by the broker, so no in-house split is necessary.
Second, we don't have a network of offices
and hundreds of agents to maintain. So our
overhead is lower, and your commission doesn't
have to pay the rent on our fancy offices.
Finally, Delaware Shore home prices have
skyrocketed over the past few years. When the
going price of a home is $1 million or more,
we feel 2% (half of the 4% we charge) is quite
adequate compensation for us. At prices over
$1 million, the other 2% is quite adequate
compensation for the buyer's broker as well.
Remember, the services that actually sell
homes are:
- A well-written MLS listing.
- A memorable brochure.
- A Web page that helps buyers remember your
home.
- Classified ads.
- Availability for showing.
Q: Will I ever have
to pay more than 4%?
A: That’s your choice,
and it depends on how you want to treat other
brokers who may bring a buyer to you and
us. Ordinarily, we’d split our commission
with such a broker, so they’d get 2%
of the sale. Legally, brokers are required
to show home shoppers all homes that fit
their requirements, regardless of the commission.
However, most of those brokers are used to
collecting 2.5% to 3% on a sale of another
broker’s listing. So, if you want to
provide them with an extra incentive, we’ll
offer them a 2.5% commission, and you’ll
pay a total of 4.5%—if, and only if,
they bring you the buyer. If we bring you
the buyer, you’ll still pay 4%. We’ll
explain this option to you in detail at the
time you list.
Q: Will my home be listed on MLS?
A: Absolutely.
Unlike most Sussex County listings, your listing
will appear in the national MLS, and will also be
entered in both the Sussex County Association of
Realtors and the Greater Capital Area Association
of Realtors local search engines. Every broker
on the Delaware Shore, every broker in Metropolitan
Washington, and anyone accessing the many Realtor® sponsored
databases nationwide will therefore know your home
is for sale.
Q: One of the big brokers has offered to
cut their commission for me. Why shouldn’t
I go with them?
A: If a broker
has hundreds, or even thousands of listings at 7%,
and a few, like yours, at 4%, which ones do you think
they’re going to try harder to sell?
|