Our Company is structured differently from the traditional full-service brokerage models, with the help of technological advances such as the Internet, cell phones and electronic signing, etc. One Percent Realty was able to reduce the typical real estate office overhead and leverage the productivity advances of its agents to create a model that significantly reduced overhead cost; and does not impact the delivery of services. Reducing operational expenses allows us to charge less but net about the same. In other words, our agents might gross less, but they keep more of what they make. It’s not what you make - it’s what you keep!
Selling your home with
One Percent Realty
"It is our goal at One Percent Realty to deliver. We provide superior value to our clients by providing excellent service and full-service real estate for a fantastic price."
When Selling your home, Sellers have three options:
Option 1: Traditional Brokerage
Sell it through a “traditional brokerage” that charges a higher commission. They will place your property on MLS® and provide full-service real estate. Depending upon what your home is worth, this will cost a fair amount of money, though it will vary across the country. For example, a $400,000 home will generally cost somewhere between $15,000-$24,000 through a company like this.
Option 2: Using a discount brokerage such as One Percent Realty
Sell it through One Percent Realty. We will charge you $7,950 for this same $400,000 home, with all the services and exposure you receive from the traditional brokerage that charges more. This fee also includes the payment to the buyer's agent ($3500). We do open houses, handle the showings, negotiations, and all the paperwork that you would expect from any full-service real estate company. In short, the services and exposure are the same as you would get from option #1 above, but for a fraction of the cost. We get paid for performance, so if your house doesn't sell, you owe nothing.
Option 3: For Sale by Owner
Sell it yourself. You can now put your home on MLS® and have your home exposed with all the other listings and deal directly with the public or REALTORS® who may want to show your property. Unfortunately, the service provider doesn't have any genuine interest in if your home sells or not. Also worth noting is that since your property is on the MLS® system, you will have a reasonable chance of dealing with a buyer's agent. These buyers' agents will expect to be paid and will negotiate a commission with you. Most likely, they will be looking to the Seller to pay them something, probably at least half, of the fees discussed in the first example.
A buyer's agent will be expecting to receive between $7500-$12,000 to sell your property if we continue to use the first example of the $400,000 home. If you can receive complete service from one of our professional REALTORS® for $7,950, why would you not just leave it to a professional?
How is One Percent Realty able to provide full service for such a great price?
Four main things make it all possible.
1. A more efficient way of operating
The advances in technology are a huge part of what makes it possible to save you thousands of dollars in real estate commissions. The most significant advances being, innovative technology, IoT (internet of things), and realtor.ca. In addition, we are huge supporters of the local MLS® boards. The advent of the internet and the overall success of the MLS® systems makes the One Percent Realty concept possible.
Competitive advantage - we offer something different
Almost all full-service companies charge similar rates for similar services; it is challenging to build a successful business under the traditional models. The conventional agent requires a higher commission structure to compensate for the lower volume of leads and lower sales in the highly competitive real estate industry. Our agents enjoy a higher volume of leads, resulting in more listings and more sales because of our lower fees. Our agents may earn less per sale but make up for it in a higher volume of sales at the end of the year. In turn, we gain more experience than the average agent, and you reap the rewards! But, it’s not about what we make. It’s about what you SAVE! It is a win-win scenario. Our agents can earn a great income, and our sellers save thousands in commissions. At One Percent Realty, the more we sell, the more you save!
4. A fundamental change in the way buyers shop
REALTORS® used to control the MLS® information - It was exclusive to the agent. That’s not the way it happens anymore.
Because of the Internet, consumers are empowered and in much more control of their home search. Over 85% of Canadians who search for a home start their search on the Internet. Whether buyers are looking for properties themselves on realtor.ca or finding properties directly from their REALTOR®; They are informed and educated on the homes in their target market.
When buyers see a home that meets their criteria and is their dream home, they do not consider the commission for their agent. The Buyer is concerned with the number of bedrooms, bathrooms, location, schools, and the price. Our listings are displayed everywhere that all the other listings are. If you are a buyer looking in a given neighbourhood in a given price range (basically all of them), you will want to see every listing in that neighbourhood within your price range. With the Buyer now in the driver's seat as a much more sophisticated consumer, the real estate marketplace had changed forever.
A good, well-priced product will sell
If your home is well kept and priced accurately, it will sell. In other words, correctly pricing your home is the most significant factor when it comes to the ability to sell your home, not commission. A house priced at fair market value will draw in buyers. The amount of commission you pay has no relationship with marketing and selling your home.
Will Other Agents Show My Home?
The simple answer is yes. Our listings, shown on MLS®, are displayed and sold by cooperating agents and REALTORS®. Over 80% of our listing sales are sold by Cooperating REALTORS®, representing the buyer--in line with industry standards.
Buyers are not concerned about the commission or the sellers’ needs. They are looking for a home that meets their needs. The last thing on a buyer's mind is how much the REALTOR® is going to make. They care first and foremost about value. Buyers always want a great home at a great price. If the buyer loves the house, does the amount of commission matter to them?