Sample Commission Chart for Sellers

Note: Amounts below are only an example of commission structure, and does not represent what the seller´s home is worth in value.  It is basically an outline of the different commission structures that Home Advantage offers.  All commissions are negotiable in Indiana .  There is no set commission.  Commissions paid to Home Advantage will be negotiated before the signing of any listing agreement.

Home Advantage does things a little differently, because we want our clients to be happy with our services.  The fact that our clients can save LOTS of money in Real Estate commissions = satisfied home sellers!  Satisfied home sellers = lots of referrals!   Referrals from our current and past clients are the highest form of compliment that we could ask for! Here is how our program works:

Your Home Advantage agent will do a CMA (Comparative Market Analysis) on your home.  When we determine what other "like" properties have sold for in the past 6 months we give you our opinion of a listing price for your home.  At most "traditional" Real Estate offices; that is the price that goes on the MLS (Multiple Listing Service).  As an example: Mr. or Ms.  Seller, other homes in your neighborhood with similar square footage, age and amenities have been listed at: $200,000.  That is the price that will go on the MLS (Multiple Listing Service).  If you agree with the agent´s determination, the agent then lists your home at that price ($200,000).  In the past 7 years or so of working at a "traditional" Real Estate office, this is how I always determined what figure to put on the MLS.

Then, out of the $200,000 dollar price, the seller/sellers would owe my company *6 or 7% commission (*again, this is only an example of the commission I may have charged a seller, because all commissions were, and still are negotiable in Indiana .  There is NO set Real Estate commission!).  Lets just say I charged the seller 6%, with 3% going to my company (the listing company), and 3% going to the selling company.  By the way, whenever I procured the buyer for my own listing, I STILL charged the seller the full commission, because I was doing 2x the work representing both buyer and seller!  At home Advantage, we do not collect both sides of the commission.  If we procure the buyer for your home, we will handle both sides of the sales transaction; then pass the savings on to you!  Why?  Again, we would like you to tell all of our friends about how much money you saved with Home Advantage.

When a Home Advantage agent does a market analysis on your home, we will always show you ALL of the homes that have sold in your neighborhood recently.  Let´s just say that the determined listing price was, again $200,000.  If you agree with our determination; $200,000 would be the BUYER DIRECT price.  If Home Advantage sells your home BUYER DIRECT, you only pay us 2% TOTAL Real Estate commission!  In most "traditional" offices, agents only sell their own listings a small percentage of the time.   WHY?   Well, in this case, there is no incentive for a buyer not

to use their own Realtor.  There is no BUYER DIRECT price on REALTOR.COM or in HOMES & LIFESTYLES MAGAZINE-or even on the agent´s own web site.

At Home Advantage, we advertise your home at 2 prices: The BUYER DIRECT price, and the BRING YOUR AGENT price.

Before we put your home on the MLS, we add 2.5% to the BUYER DIRECT price, to account for the extra commission that will be owed to a buyer´s agent, if the buyer chooses to use an agent.

Example:

$200,000, plus 2.5% (Selling office´s commission) = $205,000

$205,000 is the BRING YOUR AGENT price!

The interesting part is: Whether you sell the home at the BUYER DIRECT price, or the BRING YOUR AGENT price, you still NET close to the same amount of money!

Example:

BUYER DIRECT price is $200,000, minus 2% TOTAL commission owed to Home Advantage = $4,000

$200,000 minus $4,000 commission = a seller´s net of $196,000!

If an agent from another company procures the buyer for your home, the net for the seller will be close to the same amount.

Example:

BRING YOUR AGENT price is $200,000, plus 2.5% (added on for selling agent) = $5,000, which gives us a BRING YOUR AGENT price of: $205,000

$205,000 minus 4.5% (2% to listing office and 2.5% to selling office = a seller´s net of $195,775

Just so that we are both on the same page: Remember, if another agent procures the buyer for your home, the HUD1 (Closing Statement) will show a 4.5% commission charge to the seller.  But remember, we added on 2.5% to the listing price in the very beginning, to account for the fact that another agent could possibly procure a buyer for your home.

The following are examples of what you would net if you had to pay 6 or even 7% commission, and there was no BUYER DIRECT price.  Remember, MOST "traditional" Real Estate offices only advertise your home at the MLS price.

Example:

$200,000 MLS price, minus 6% commission to listing and selling offices = $12,000

$200,000, minus $12,000 = a seller´s net of $188,000

Example # 2:

$200,000 MLS price, minus 7% commission to the listing and selling offices = $186,000

This tiered commission plan is already being used in other areas of the United States .  One such company is: Home Discovery, in Tampa , Florida .  They have been offering full service Real Estate for 2% commission for many years, and they also won the prestigious Governor´s Award for Business.   Home Discovery is just an example of how innovative entrepreneurs are catering to consumers who are business savvy. Go to: www.HomeDiscovery.com   if you wish to see the success that full service, discount Brokers have achieved in other parts of the country.

You may have been surprised to find out that Home Advantage is not the first Real Estate Company to offer the full service, 2% commission concept!  There are lots of full-service, discount offices that give consumers other options; however we are the only "discount" Real Estate office in this market that offers the full-service that sellers have become accustomed to with "traditional" business models.  At least we haven´t heard of them, if they are here.  We welcome any new, innovative businesses in N.W. Indiana!  Here are some other Real Estate companies that are offering buyers and sellers more choices: 

Coldwell Banker, which is owned by Cendant Corp., launched its 2% Blue Edge Realty in Illinois in May 2001 to leave more control to the seller in the transaction process (almost a do-it-yourself model). Blue Edge operates in the state of Pennsylvania, also. Coldwell has not publicized any expansion plans and/or their success. Two Century 21 franchisors have started a successful flat fee discount brokerage company called Century 21 Clickit, which charges clients three tiers of fees for home selling services. Century 21 is also a Cendant Corp., which Cendant claims no affiliation with the discount concept. Foxton's, a northeastern company started in 2001 and primarily owned by Foxton´s UK , started as a 2% business model in New Jersey , Connecticut , and New York and just recently announced they will increase their commissions to 3%. Foxton´s is one of the few companies that started from scratch and has achieved significant market share in their area of business due to their aggressive marketing campaign and focus on technology. Home Discovery is now the leader of the 2% business model due to Foxton's commission structure change to 3%.  We wish them continued success!

We at Home Advantage always respect the seller´s option to go with whatever Real Estate company that they deem compatible.  After all, selling your home is one of the biggest and most important financial decisions that you will make!

In no way does Home Advantage "cut corners" when it comes to listing or selling a home.  We strive constantly, to give our loyal clients LOTS of necessary exposure for their home, so that we may get our sellers the most money possible; in the shortest amount of time.

The agents who work at Home Advantage are knowledgeable, educated and fair.  We have a very intense process, when interviewing potential agents to join our office.  Reputation is important.  In our opinion, just because a person can obtain a Real Estate

Associate´s license, doesn´t mean that they will be a professional, top-notch agent.  It takes lots of negotiation, "people skills" and strong sales ability to be truly a great agent!