Real estate commissions are a necessary evil. At least that’s how the common wisdom goes.
Whether you’re a first-time homebuyer or seller or someone with vast experience, you’ve spent time adding up the costs of real estate transactions and wishing you could shave off a few percentage points.
Luckily, you can. Behold the real estate benefits of 0% commission loans.
1. You Can Save Serious Moolah
As a seller, an average 6% commission on the sale of the home is coming out of your pocket from the purchase price. That commission then goes to both your realtor and as well as the buyer’s agent.
Naturally, 6% is a lot of money. On a $500,000 loan, that’s $30,000! Some experts will recommend negotiating the realtors’ commission in a down market, but you don’t always have that option. And it’s not necessarily the best way to be on a good footing with your agent.
With the 0% commission model, none of this is an issue. You pay a flat, hourly rate based on the services provided like you would a lawyer or accountant.
That can save you big, especially the higher the price of the home.
2. 0% Commision Companies Use the Latest Technology
This isn’t talked about much, but in order for 0% commission companies to remain competitive, they have to be technologically savvy.
The 0% model only works if the company is finding ways to be efficient and reduce costs. Efficiency from the company also means a smoother, more efficient transaction for you as the seller or buyer.
3. It Takes Away Conflicts of Interest Between Realtor and Client
One of the big issues about the traditional commission model is that the buyer and seller’s agents’ should be natural enemies. The buyer’s agent should be negotiating for the lowest price on behalf of the buyer, while the seller should do the reverse.
But if both agents are paid from the same closing percentage, then they both have their interests aligned to a higher closing cost. If you’re a buyer, using a 0% commission agent has big real estate benefits. Why? It’s simple: they have no skin in the game based on what sale price you end up getting.
4. It’s a Perfect Middle Ground Between Traditional Realtor and FSBO
From a seller’s point of view, this model is an ideal compromise between the For Sale By Owner (FSBO) route or going with a traditional realtor.
You get all the expertise that you might not have as an owner, plus a resource to fill in gaps, explore avenues, and help negotiate with potential buyers. At the same time, you can be a master of your own efficiencies and use these real estate services as you need them.
It’s a revolutionary model only because it’s so uncommon. But when you think about it, you’re simply paying for professional expertise. And that sounds natural.
Learn More About 0% Commission Real Estate Benefits
Still not sold? Our agents are here to help you navigate the intricacies of buying real estate while making the most of your budget.
Learn even more about the benefits of 0 percent commissions and how you can save using a realtor with a flat fee. Sign up for a free consultation today.
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