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
Why use a REALTOR to sell your home
With the changes to MLS® rules, there is now allowance for a REALTOR® to do what is referred to as "mere posting." Think of a mere posting as putting your property on the MLS® system, but you, the seller, field all the calls, offers, negotiations and paperwork. A mere posting company will charge a nominal fee for this, which we would estimate to be around $500. The idea here is to allow people to market their properties themselves on MLS® (For Sale By Owner) but do all the work themselves.
When Selling your home, Sellers have three options:
Scenario 1 - Sell it through One Percent Realty
For only $9,950 for a $900,000 home - with all the services and exposure you would receive from the high-commission companies–but at a low commission rate. This $9,950 fee also includes payment to the buyer’s agent (usually $4,500). One Percent agents handle all the showings, including showing the property to buyers, negotiations, and paperwork. Everything that you would expect from any full-service real estate brokerage. In short, the services and exposure are the same as you would get from the 7%/3% commission agent option number three above for way less money.
Scenario 2 – Mere posting/Sell it yourself.
You can now put your home on MLS with a company that offers mere postings and deal directly with the public and REALTORS® who may contact you about your property. It is worth noting that since your property is on the MLS® system, you will have a solid chance of dealing with a buyer's agent. These buyer agents will expect to be paid. Typically, they will be looking to the Seller to pay them for bringing the Buyer. If we use the $900,000 home as our example, a buyer's agent in Alberta may expect the Seller to pay them 3.5% (on the first $100,000) and 1.5% (on the balance of the sale price) or $15,500.00, for example. You also pay the mere posting (For Sale By Owner) company an additional $500 or so for the upfront listing fee, and the mere posting company might also charge you a success fee, adding to the cost again if you sell it yourself.
Scenario 3 - Sell it through a traditional, high-commission company
who will place your property with a local real estate board that operates an MLS® system and provides the same Full Service that One Percent Realty does–for more. Depending on your home’s worth, this can cost a fair amount of money. Although commission rates vary in the marketplace, a company like this typically costs $31,000* for a $900,000 home in Alberta.
If you can have the complete services of our professional One Percent Realty salespeople for only $9,950, why not leave it to us?
(*Based on a commission of 7% on the first $100,000 and 3% on the balance of the sale price. There are no standardized commissions in Alberta)
If we continue to use the first example of the $900,000 home, a buyer's agent will expect to receive almost $16,000 to sell your property. If you can receive complete service from one of our professional REALTORS® for $9,950, 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
2. Technology
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?
