Why do Sellers pay a commission to the Listing Agent?
- They don’t know if the house will sell and they will have free service if it doesn’t.
- They don’t have the money to pay upfront for service. Or…
- They don’t know any agents that charge by the hour.
Now they do.
Commissions are high-risk/high-reward for the agent and this gives the Seller another option depending on their situation. For Example:
- 15 Hours x $125 = $1875
- 1% of $325,000 = $3250
Hourly Services compliment the Flat Fee Listing Option perfectly if the Seller needs just a little extra help during the transaction instead of upgrading to a commission agreement.
- $125 per Hour for negotiations, writing contracts, phone calls, research, etc.
- $45 per Hour for being present during inspections and available to give advice during that time.
- $20/Hour for Open Houses. This is less because I have the opportunity to meet new clients.
The majority of Sellers will save money with this option. The more expensive the home, the more savings you will likely see.
Most people pick the $495 Flat Fee Service because they have knowledge or experience with real estate. But sometimes they wanted more service but they didn’t want to go for the full commission for just a little bit of knowledge or advisement. The hourly service takes care of that issue.
1% Listing Side Commission more than you want to pay at close? Or maybe you don’t need that much representation? You like the $495 Flat Fee but want a little help down the road? Then the hourly based service will work for you.
Call me with questions 503-750-6494 or send an email to mikerohrig@gmail(dot)com.
Mike Rohrig, serving the Portland Metro Area and based in Beaverton.