What is the concept behind One Percent Realty?
Market research suggests that the public recognizes the value of a "middle man" with skill and knowledge for showing properties and negotiating a sale, but views prevailing commission rates as too high. As a result, the One Percent concept was established in the spring of 1999. Since then One Percent Realty has experienced phenomenal success. In a few short years One Percent sold thousands of homes in the Greater Vancouver area with over 3000 sales in 2008 alone. With this great success One Percent has begun an expansion program into Vancouver Island, the Okanagan Valley and now has offices throughout BC.
What is the deal exactly, with One Percent?
We are a fully licensed real estate company. In terms of services and exposure, we are identical to whoever you would like to compare us with. We are on MLS, all the top internet sites, we place a sign on your property (if it is allowed), we show the property, hold open houses, advertise it, handle all the negotiations, plus the conveyancing. There is nothing that you are not getting.
Why are typical real estate commission so high?
Realtors spend most of their time soliciting for listings. In fact, like it or not, most realtors feel that half of their job is done the night they list your home for sale. This is contrary to the seller's belief that when their property is listed the realtor's job begins. Real estate commissions are high for a number of reasons. The main reason is because many homes do not sell. There is a lot of time, effort and money spent by a realtor that he will never get paid for. Realtors also spend many weekends with a potential buyer showing them dozens of homes only to have them buy from another realtor. So when a sale does complete the realtor wants to be well paid.
At One Percent we don't believe high commission sell homes. We believe good home priced right for the present market conditions sells. We don't believe in penalizing customers with a good product, priced right, with high commission, for sales that did not happen. By offering a lower commission our realtors spend less time looking for business and more time doing our job, which is selling your property!
How much will it cost me to sell my home with One Percent?
One Percent Realty charges 1% real estate commission with a minimum of $7,000. However, our reduced commission fee structure does not mean reduced service. At One Percent Realty we offer discounted commission but not discounted service. We are a full service brokerage that will list your home on the Multiple Listing Service, which accounts for the majority of home sales. As a result your home will receive maximum exposure on the MLS database, as well as MLS.ca website. In addition to this your home will be advertised by One Percent in more traditional medias such as local real estate publication.
How can One Percent sell my home for such a low commission?
Because a good well priced property will sell! If your home is well kept and priced correctly, it will sell. It has no relationship with the amount of commission you pay. One Percent Realty is an innovative discount brokerage using technology and the internet to bring buyers and sellers together. One Percent is not locked into the high overhead of typical real estate companies with expensive office leases and costly management fees. One Percent realtors average twice as many deals per year than the national average of realtors. With this volume and by working efficiently One Percent realtors can pass these savings to you.
What if a buyer has his own agent? Do I have to pay them?
We split our fee on a 50/50 basis. As a matter of passing interest, roughly 75% of our listings are sold by outside agencies through the Multiple Listing Service which appears to be roughly industry standard. If agents tell you that our listings are not sold by other agents, they are simply lying.
Other realtors have told me that if I list with One Percent Realty, realtors will not show my house because they don't get the same amount of money. Logic would dictate, that they are going to sell the house down the street where they get paid more money if their clients buy it. Do agents boycott your listings?
We cannot measure showings that we do not get. What we do know is that 75% of our listings are sold by other agents. Would they rather have more money? Of course - no argument. But the fact is our listings are displayed everywhere all other listings are. It is on MLS, all the top internet sites, a sign on the lawn, it is in the real estate paper, and we do open houses. So if someone is looking for a home in your neighbourhood, in your price range, they are going to know it is for sale. That buyer is going to look at whatever is on the market before they make their decision. Buyers don't pay the real estate commission, so why would they care which house they buy? If their agent is unhappy with what we pay, the buyer will call us. But the fact is that agents sell our listings, every single day.