Our “1% Full-Service Listing” pricing model is dramatically different from those of almost all other Realtors here in Connecticut so, naturally, home sellers considering hiring us to sell their homes often have a few Frequently Asked Questions (“FAQ”). We thought it would be helpful to address them here:
How does Rockoff Realty charge only 1% while most other Realtors charge a 2.5% and sometimes a 3% Listing Fee?
The 5%/6% Listing Fee, typically split between Listing Broker and Buyer Broker, has been around for decades, long before the advent of the Internet. But the Internet has completely changed how homes are actually bought and sold. One of the big changes is that neither buyers nor sellers actually visit Realtor offices these days. So, as Realtors we are able to work remotely and we do not require an enormous physical infrastructure, allowing us to get the job done at less cost and pass the savings on to you. Further, all Realtors have equal access to MLS and this is key because all sites such as Zillow, Realtor.com, Homesnap, Redfin, etc. pull their listings directly from MLS. So, we only have to enter the listing information once (including photos and attachments) and then all buyers everywhere can see the listing. The savings are passed to you, the home seller.
Rockoff Realty is based in Amston, CT; doesn’t my listing agent need to be local?
What about the Buyer Broker fee?
The fee paid to a Buyer Broker is not mandated by any CT statute and is in fact set by the Seller. We recommend to our listing clients that they offer a 2.5% Buyer Broker fee. Why? There are two main reasons for this. First, while it takes us on average about 10 hours or so of our billable time to list a home, when a Realtor is working with a buyer, it is a very different endeavor – particularly in this inventory-constrained marketplace. When working with a buyer, a Buyer Broker will often visit 20, 25 or even more homes and write multiple offers until the client gets an accepted contract. Plus, the Buyer Broker is responsible for attending the Inspection, working with the bank on the mortgage, etc., so the net result is that it would not be profitable for a Buyer’s agent to work on, say, a 1% Listing Fee. Relative to listing services, Buyer Broker services are a very labor intensive endeavor. Second, pretty much every other home-seller is offering a 2.5% Buyer Broker fee, so as a home-seller you would not want to disincentivize a buyer’s Realtor from firmly supporting the sale of your home. So net/net, we at Rockoff Realty save our clients at least 1.5% per transaction and sometimes up to 2.5%. Further, we offer a Dual Variable commission whereby when we represent both Buyer and Seller under mutually agreed Dual Agency, the total Broker commissions are only 2.5%, thus allowing for both parties to reap significant additional savings.
Will other Realtors show Rockoff Realty homes?
We get this question because home sellers sometimes are concerned that perhaps because of our pricing model, other Realtors will retaliate by not showing our listings. However, the answer is “yes”, other Realtors do show our listings as we have sold hundreds of homes with buyers represented by their Buyer Brokers. And there are two reasons why this should not concern our clients. First, it’s the law – Buyer Brokers must show their clients homes that they reasonably want to see. Second, as discussed above, our clients typically offer Buyer Brokers a 2.5% Buyer Broker fee which is on par with pretty much every other listing. So, while on a macro level they may fear our competitive pricing model (which they could always match if they wanted to), when the rubber hits the road and their client likes our listing and they’re getting their 2.5%, it is not an issue.
Are there any “hidden” fees?
No. Just as is the case with any other full-service Broker, we only get paid if/when your home sells. There are no up-front or back-end fees and we include professional photography with our 1% listing fee. We handle the contracts and negotiations for you, provide electronic lockbox and sign, etc., which are all of the services provided by other Realtors who charge 2.5%. Again, as discussed above, we just don’t have the physical office overhead that is no longer needed in today’s Internet-driven real estate market, and the savings are passed along to you, the home seller.