Give home sellers a choice to negotiate commissions after seeing the quality of the offers, and selling costs will decline.
Evolve or die. The real estate industry is slow to evolve, so you will encounter some pushback when you build a company that’s thinking ahead. That’s OK; we designed our firm to solve a problem for people who buy or sell homes. Our clients are early adopters; they embraced our business model and profited substantially. The news out of Kirkland, Washington, that the Northwest MLS will allow home sellers the advantage we’ve been giving clients since 2019 is all good. Welcome to the modern age of listening to the consumer.
Our business model increased the profits of our home-selling clients by $4,000 to almost $30,000 each since we introduced a more intelligent negotiating strategy in 2019. Bringing our model to the market meant rejecting and refuting myths that have stood forever, holding buyer-side commissions (paid by the seller) at a rate about 33% higher than our client’s pay. Our typical client saves $8,000 selling a $400,000 home.
Don’t expect to see Wisconsin and other MLS organizations follow the lead of the MLS in Kirkland, WA, just yet. The National Association of Realtors may one day encourage members to evolve commission-sharing rules. Until then, Essential Real Estate, LLC, a small, locally owned firm with offices in Madison and De Forest, will continue to be the first choice broker for people who prefer to keep more of their home equity and spend less on unnecessary expenses.