As One Percent Realty sees it, low commissions for its real estate agents doesn’t translate into low asking prices on the homes they represent.
Instead, the market—whether it’s a buyer’s market or a seller’s market—is the determining factor when setting a home’s final sale price. Other factors include the unique and individual circumstances surrounding each seller or buyer at the time of the transaction.
“In a nutshell, the commission you pay has no correlation to the selling price of your home,” says Nari Thiara, a real estate agent with One Percent Realty.
For One Percent Realty, the role of the Realtor® has changed to that of one who facilitates the negotiation between a homebuyer and a home seller. It’s why the full-service discount real estate company has eliminated charging the high commission that usually comes with the sale of a home.
“There’s no need to pay Realtors® so much commission when their role has changed,” says Nari, who’s been a real estate agent in Richmond for 12 years. “The people have access to all the listings online. The Realtor® is no longer providing information that’s inaccessible to the general public. Instead, their role is really to help the with the negotiations and the signing of any documents.”
Prospective clients looking to sell their homes may have some concerns about a One Percent Realtor’s® incentive to negotiate a higher sale price on their behalf. After all, if the Realtors® aren’t being paid a high commission, they might not be as motivated to sell the home.
“My drive to serve my clients’ best interests is not driven by a commission rate,” says Nari.
For traditional real estate agents—those who charge 7% commission on the first $100,000, and 2.5% on the balance—there’s little difference in commission between a home that sells at $1,000,000 or one that sells $1,020,000, she points out.
“It’s the difference of either $29,500 in commission or $30,000—that’s only $500 more,” she says. “A home price that accurately reflects current market conditions will sell regardless.”