When you buy
These days, everyone looks at real estate listings online. Then they contact an agent to see a property. The agent will get you in the door, give you any paperwork and then submit your offer. After that you’ll work with the title and mortgage companies for most of the closing.
When you sell
A real estate agent will help sellers come up with a listing price, take some pictures, and record the home’s details to post online. Then they’ll wait for a buyer to find the home and let you know if someone is coming for a showing. They’ll also relay any purchase offers. Lastly, they’ll update you on the progress of the closing.
Little work, lot of cost
None of this is very complicated, especially when considering the fees they charge. The agent for the buyer takes 3% of the home’s value and the seller’s agent gets another 3%. That means if you’re selling, you lose 6% of your sale price to real estate agents. If you’re buying, you’re paying 6% too much for the home.
As if 6% isn’t enough, many real estate agencies charge other fees that never seem to be disclosed in advance. We’ve seen additional fees like an admin fee, a processing fee, service fee, transaction fee, technology fee, marketing fee, document storage fee, and a few others. This isn’t right.
Does their service justify the large fee?
We don’t think so. This isn’t a knock against the agents themselves. The industry is very inefficient – fees are split between the agents and then again with their brokerage company. In this scenario, its the brokerage company that wins.
YELLOW provides everything they do for a fraction of the cost – and you’ll always have a real live person here to help
Buyers DO pay for the commission
We’ve seen agents claim that buyers don’t pay any commissions because the seller pays that fee. This is extremely dishonest. While the seller will pay both the buyer and seller’s agents out of the proceeds from the sale, the seller also raised the price of the home by 6% to compensate for these fees. That means buyers paid 6% more than the true sale price to cover the agent commissions.
That’s why there’s YELLOW.