When it comes to buying and selling homes, Recadia has kicked the 6% real estate commission to the curb. But, unlike many flat fee brokers, they didn’t throw away the good with the bad. Knowing what buyers and sellers want most, Recadia is focused on these three things:
- Helping their clients save thousands
- Providing a win-win situation for both the buyer and the seller
- Open communication that keeps the buyer and seller in the loop at all times
As the Multiple Listing Service (MLS) data became available to the public, and the Internet began to open up the home buying and selling process to the masses, buyers and sellers began to question the traditional 6% commission received by brokers for the sale or purchase of a home.
Eventually, that questioning turned to a small-scale rebellion leading some brokers to consider other models of real estate. However, these other models, like discounted brokers, flat fee MLS listings, and For Sale By Owner (FSBO) packages not only reduced the fee, but reduced the services offered. In the end, 88% of those that tried these models ended up with a traditional broker paying 6%.
Why? Consumers inherently know that they do not want to sell a home on their own. It’s a lot of work. There is the signage, the marketing, the 24/7 phone calls, house showings, negotiations, contracts, and closings. Problems can, and do, occur at all of these points and having a professional that knows the ins and outs makes sense. Without a professional, most sales do not make it to closing. It’s just a fact.
However, these same consumers are irritated that professionals are taking such a large percentage of their home’s value when portions of the broker’s job has become much more simplified due to technology. So, they turn to something less expensive, only to find that it is much harder than they thought, and end up paying full price anyway.
Recadia understands this problem and offers a solution that not only helps buyers through the process, but saves their customers thousands at the same time. It is the flat fee, full service model. Recadia charges a flat fee to sellers to sell their home and receives a flat fee to help a buyer find a home. Nonetheless, Recadia provides every service you would expect from real estate professional, such as:
- Pre-Listing Activities: Researching comparables, preparing a listing presentation package, and compiling a formal file on the property.
- Listing Appointment Presentation Activities: Providing the seller with an overview of current market conditions and a marketing plan.
- Pre-MLS Activities: Getting a lockbox, calculating the average utility usage, arranging for signage, and making suggestions for increased curb appeal and first impressions.
- MLS Activities: Taking professional photos and uploading those photos along with specifications and selling points of the property to the MLS.
- Marketing Activities: Creating print and internet ads, coordinating showings, preparing flyers and a marketing brochure, and uploading listing to online sites such as Zillow, Trulia, and Realtor.com.
- Offer and Contract Activities: Reviewing all offers, helping with negotiations, preparing counter offers, and providing a legal contract.
- Inspection and Appraisal Activities: Coordinating times, reviewing inspections, negotiating repairs, providing comparable sales to appraiser, and appealing a low appraisal.
- Closing Activities: Coordinating the process between brokers and lenders, updating forms, solving title problems, conducting buyer’s final walk through, and reviewing final documents for accuracy.
- And much, much more.
Now, instead of using a discount service that hands a majority of these tasks back to the seller, buyers and sellers have the option to pay a reasonable flat fee while getting the help they need to be successful.
Flat Fee, Full Service is a Win-Win Solution For Everyone
Traditionally, brokers receive 6% of the selling price of the home for their commission. This means that the fair market value of a home is inherently 6% higher to account for this fee. When a broker, like Recadia, takes a flat fee instead, everyone wins.
Let’s look at a scenario to see how this works.
Traditional 6% Method
- Seller John and his traditional broker negotiate a contract to include a 6% standard commission, which will be rolled into the listing price of the home.
- John’s house is put on the market for $400,000, which is a fair market value.
- When John’s house sells, he will pocket $376,000, which is $400,000 minus the 6%.
- The buyer has to bring $400,000 to the closing.
Recadia’s Flat Fee, Full Service Method
- Seller John and Recadia negotiate a contract to list his house for sale. Since Recadia collects low flat fees instead of a percentage-based commission, only $4,000 of realtor commission is added into the list price of the house.
- Since the contract negotiated with Recadia has $20,000 less in fees, John could potentially list his house below market value. This will increase the interest in John’s house and provide more potential buyers due to the lower price, making it sell more quickly. In the example, John decides to list his home for $390,000.
- When John’s house sells, he will pocket $386,000, which is $390,000 minus the flat fees.
- The buyer has to bring $390,000 to the closing.
In this scenario, the seller pocketed $10,000 more at closing than he would have using a traditional agent, while the buyer spent $10,000 less at closing. This is a win-win for both parties.
Recadia Communication Above the Rest
In addition to high fees, a buyer or seller’s second biggest complaint is poor communication. They sometimes feel out of the loop and do not know what is happening.
Recadia understands how important it is for their clients to know what is happening at every stage of the game. With Recadia, not only will you get a full service broker for a flat fee, but you will also get an enhanced communication platform that will keep you up-to-date 24/7. You’ll never have to guess where the home buying transaction is in the process.
When it comes to real estate, the agents at Recadia not only have more than 25 years of experience, they also have your best interests at heart. To learn more about flat fee, full service home buying and selling, call us today.