GreatNest Realtor Q&A: Set Fees vs. Commissions

Posted by Steve Vincent on Apr 29, 2014 11:21:21 AM

In save money when selling your home, GreatNest, lower commissions, Sellers, set fee listings

The Vincent Group at GreatNestHow Does GreatNest Work?

We're a real estate company, but our business model is very different.  The difference is largely behind-the-scenes and our clients usually don't notice any difference between what we do and what they are used to from a good real estate company.  The truth is: we do everything any other real estate company does - put your home in the MLS, market extensively, prepare virtual tours, feature your home all over the Internet, and much more - but instead of a BIG percentage commission, we charge a Low Set Fee.  The Fee is a lot less than what others charge and it works for us because we organize and run our office differently than other real estate companies.

What is a Set Fee and Why Do You Charge For Your Services This Way?

A Set Fee is exactly what the name applies:  a dollar amount commission that is Set:  everybody pretty much pays the same amount regardless of sale price.  Other real estate companies charge a percentage of the sale price - say, 6%* - so the family in the $150,000 home would pay $9,000 to sell and the family in the $200,000 home would pay $12,000 for the same service.  Of course that makes no sense at all.

We know what it will cost to market a properly priced listing in the Triad and it doesn't vary much by price range.  So we add a reasonable profit to that figure and that's our Set Fee.  There are some market segments where average days on market or marketing expense are usually greater and our Fee increases slightly in those areas, but the bottom line is the same:  Everybody who sells through GreatNest and The Vincent Group saves over what they'd pay an ordinary real estate company.

Do I Have To Do A Lot Of The Work?

No. We do everything.  However, you can save even more if you find your own buyer.  So - if you'd like - you are welcome to do a little promotion on your own.  Some of our listed sellers take flyers to the office or distribute them to friends and neighbors and find their own buyers this way.  Others hold their own open houses. But none of this is required.  We can do it all for you and you'll save thousands over what others charge.  Our competitors often say we are a For-Sale-By-Owner company and our sellers have to do everything.  That couldn't be further from the truth! We are a full service real estate company and we do everything other real estate companies do, but we also allow for money saving options for our home sellers.

What Am I Giving Up?

Nothing.  We are not like a discount store where you get a good price but lose a lot of the nice amenities that go along with shopping with a major retailer.  We are like the major retailer, with all the frills, bells and whistles. Our difference is in how we run our office.

What Does It Cost Me To List With You?

Nothing.  We don't charge an up-front fee.  Our fee is due at closing; so if your home doesn't sell (which is very rare for us), no fee is due.

Why Doesn't Everyone Do It This Way?

There has been little change in the way real estate companies run their businesses in more than 50 years.  So many people have to be paid out of that big percentage based commission they charge that it would be almost impossible for them to charge differently.  We've changed all that.  We run our office differently and market more efficiently.  And, we pass the savings on to you, the consumer.  GreatNest is  the NEW way to sell your home, and save.

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*Real estate commissions, whether percentage based or set fee, are not set by law, custom or Realtor consensus.  They are fully negotiable between the consumer and the broker.