What is the deal exactly with One Percent?
One Percent Realty is a fully licensed real estate company that offers full service but at a commission less than what is commonly charged. In terms of services and exposure, John and Dave are identical to almost anyone with whom you would like to compare them, and often John and Dave provide more services than those charging much more. Listings are on MLS®, all the top internet sites, and in the newspaper regularly. John and Dave employ a professional photographer to do industry-leading pictures and moving virtual tours, which are posted everywhere buyers are looking. They will place a sign on your property (if it’s allowed), show the property, hold open houses (if you desire), advertise it, handle all the negotiations, plus the conveyancing. There is nothing that you are not getting, except for a high commission!
Are your listings on MLS® and REALTOR.ca?
Yes, and yes.
How do your fees work?
Dave and John charge a flat fee of $6950 + GST for anything that sells under $600,000, and a rate of 1% of the sale price + $950 + GST for anything that sells over $600,000. There are no hidden fees whatsoever.
Are there any hidden fees?
No, there are not any hidden fees. When you sign the standard MLS® listing contract with us, it lays out exactly the commission cost to you. If you are selling a Strata property, there are some strata documents that you will be required to provide to the buyer in a sale, and these are typically obtained from the property manager. A strata document package can typically run between $50-$100, and John and Dave will typically order and pay for them on your behalf to facilitate the sale, and you will be responsible to refund those costs. That’s about it!
How can you provide the same services but charge less?
Dave and John sell a lot of properties, and because they do not pay high desk fees at One Percent Realty, they have a relatively low overhead, enabling them to pass savings on to their clients. So many people want them to sell their properties that they can make a good living without charging so much of each seller. After all, it doesn’t take any more work to sell a $600,000 home than to sell a $300,000 home, so why should you pay so much more? Dave and John believe this is simply a better and more fair business model, and that it is likely to become more common throughout the country in the future.
If I pay less, will I settle for less service and get less money for my home?
Absolutely not. You’ll get the same level of services and the same results you’d expect to receive at most other brokerages. A large percentage of any REALTOR®’s business comes from referrals from past clients. John and Dave value their reputation and want you to be happy so that you will remember them down the road. Both the average time it takes to sell one of their listings and their sold price to listing price ratio is similar to what you may expect elsewhere. Yes, you’ll pay less, and you’ll get the same or better results. You’ll just end up with more money in your pocket at the end of the day!
What if a buyer has his or her own agent? Do I have to pay them extra?
The $6,950 commission includes a $3,000 commission to the buyer’s agent. In a typical sale under $600,000 with John and Dave representing the seller and the buyer represented by another brokerage: Dave and John earn $3950, the buyer’s agent earns $3000. The Buyer’s agent’s fee is included in the $6950. There are no other costs to the Seller.
Roughly 70-80% of John and Dave’s listings are sold by agents from other brokerages through the Multiple Listing Service. This is approximately the industry average. If an agent tell you that One Percent Realty listings are not sold by other agents, they are simply lying. Years of MLS® statistics prove it.
Will other REALTORS® show and sell my home if I list with One Percent Realty?
Absolutely, unequivocally, yes. Statistically, One Percent Realty is similar to other brokerages. Approximately 70-80% of John and Dave’s listings annually* are sold by agents from other local brokerages bringing their buyers, just like with any other company. If any person tells you differently, he or she is misleading you or is misinformed. Remember – buyers don’t care whose name is on the For Sale sign or whose smiling face is beside the REALTOR.ca listing – they just care about whether a property is right for them. Isn’t that all you would care about if you were buying a property? This is intuitively obvious.
Dave and John don’t dispute that other agents may like to get paid more money. But, it is always up to the buyer to determine which properties the buyer will view and which property they will ultimately purchase. This is why John and Dave’s listings sell just like all the other listings. It’s all about the property, the market, and the price. That’s it.
If you’re still skeptical about this, give us a call. Dave and John would happily bore you by reviewing with you all of their hundreds of sales over the years to show you how agents from all the local brokerages regularly sell their properties!
Other agents have told me that if I list with One Percent Realty, agents from other companies 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. Do agents boycott your listings?
One Percent Realty listings are shown by cooperating REALTORS® everyday just like other listings on MLS®. 70-80% of Dave and John’s listings are sold by cooperating agents every year. Would other agents like to make more money? Sure — no argument. But the fact is, John’s and Dave’s listings are displayed everywhere that all the other listings are. They employ industry-leading advertising with MLS®, all the top internet sites, outside signage, newspaper advertising, and professional photography and virtual tours. So, if a buyer 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. And then the buyer will make an offer on the property they feel is right for them. Buyers don’t pay the real estate commission, so why would they care if the house they want to buy is offering less commission? If the buyer’s agent is unhappy with the commission John and Dave are offering, the buyer will call us directly . But the fact is that other agents show & sell One Percent listings, every single day. All of John and Dave’s sold signs over the years prove it!
I have been told that other agents sometimes ask for more commission than is being offered on MLS® with an offer. Can you respond to this?
When a buyer makes an offer on your property, usually, everything is negotiable. The buyer can ask for anything – for all of your furniture, the car in your driveway, and even your cat or dog (though up to this point, we don’t believe anyone has ever asked for Sparky to be included in the sale).
Similarly, a buyer’s agent, with the consent of the buyer, can include in the offer, a request for additional commission. John and Dave do not see this request all of the time, as many buyer’s agents simply accept the commission amount that is offered. However, if you do get the request in the offer, as the seller, you will decide what you wish to do with such a request – it is 100% your choice. The majority of John and Dave’s sellers decline to pay such requests and almost of all those offers still proceed normally. That being said, some of John and Dave’s sellers decide to pay some or all of the requested commission increase – usually if the seller is very happy with the offer as it was presented. Even in those situations, sellers still save many thousands of dollars on the listing side of the commission versus the more typical listing commission rates. The bottom line is that you will always save.
As with everything else involved in the sale, if you do see this request in the offer, John and Dave will guide you through your options to make sure you get the best possible outcome.
HOW MUCH WILL I SAVE BY USING ONE PERCENT REALTY?
To determine how much you will save, please follow the chart below as a guide. All figures shown are plus GST.
|Most Other Brokers*||$12,000||$14,500||$19,500||$24,500||$29,500||$42,000||$79,500||$129,500|
*Though not all commissions are the same, we are comparing to a rate of 7% of the 1st $100,000 of the sale price and 2.5% of the balance.