Thank you!
Thank you for taking the time to learn more about our company. Our business model is simple. It is designed around the concept of allowing the homeowner to keep more of the equity in their home when they go to sell. The competitive edge offered by Change Realty is the advantage of full-service residential brokerage at value pricing.
Typical Savings – Why 1%?
Historically, when you sell your home, you would use a “traditional” broker, that would list your home with a built-in 6% commission that is usually split evenly between the listing agent and the buyer’s agent. Upon the sale of your home, the listing agent would receive 3% commission and the buyer’s agent would receive a 3% commission.
At Change Realty, we offer the same full service of a traditional brokerage, but only charge a 1% listing fee. Again, the same full service of a traditional brokerage for a 1% listing fee. Now, we still recommend that the buyer’s agent receive a 2.5% commission, but that is an average savings of 2.5% of the sale price of your home – that savings can be used in negotiating price with the buyer, paying for unexpected repair costs, or just pure savings.
For example, assume a house sells with a traditional broker commission of 6%. The sale price of the home is $500,000. Six percent commission would be $30,000, split equally between the listing and buyer’s broker. Using the pricing offered by Change Realty, the commission would only be 3.5% (1% listing fee and 2.5% to the buyer’s broker) or $17,500 – a savings of $12,500 for the same service.
Usually, the question comes up, “Why hasn’t anyone done this before?” Great question. People have been complaining about realtors being overpaid for years. But if people keep paying the typical 6%, nothing will change. The main reason is that the traditional brokerage has built a business and established expenses based on certain expected revenue. It would be very difficult to voluntarily cut their own revenues midstream.
Change Realty has built our business model based on the 1% listing fee.
Experience and Results!
On average, the brokers at Change Realty have approximately eight years of experience selling real estate in the Portland Metro area. Our neighborhood specific approach to representing our clients allows homeowners to achieve the highest possible price for their home. Our marketing program works. Just within the past eighteen months, our company has sold over $28 million in properties and saved our homeowners over $300.000 in commissions! The foundation of our online marketing program is the custom property website we create for each listing. To see a sample website, click here.
New alternative to For Sale By Owner (FSBO)
Before the introduction of Change Realty, home owners had two alternatives. Either hire a traditional broker and pay the high commission, or try to sell their home on their own (FSBO). Change Realty has created a new “middle ground” option that previously did not exist. Now you are able to receive the full service and representation of a licensed realtor at value pricing. To review, what to expect the first week of a new listing, click here.
Closing costs – what to expect.
As a seller, two common questions come up “How much will my closing costs be?” and “Do I have to pay the buyer’s closing costs?” A good estimate to figure out your closings costs is about 4% of the sale price of your home. This includes 3.5% for commission, roughly ½% for title insurance and miscellaneous fees, and any pro-rated property taxes (depending on what part of the tax year July-June the transaction is completed). In regards to buyer’s closing costs, the seller is not obligated to pay any buyer’s closing costs. However, it is becoming more common for the buyer to ask the seller to “contribute” money towards buyer’s closing costs at closing. This minimizes the amount of “out-of-pocket” money the buyer has to come up with in addition to their down payment.
What is a Party Sewer?
The Bureaus of Environmental Services and Development Services are working together to address property issues involving party sewers. To find, answers to some frequently asked questions (FAQs) about party sewers, click here.
