The average commission rate for buying and selling a home is about 6%. 3% goes to the buyer’s agent and 3% goes to the listing agent. If the listing agent or their team sells the house, they get the full 6%. Some agents will discount the total if they bring the buyer, it’s harder to do that with teams, and it’s hard to pay a company less when they did their job better. The Trade-Up program is designed for customers that are both selling a home and buying a home. By using one of our TEG agents to handle both transactions, it increases efficiency and smooths out the process of coordinating both transactions. This increased efficiency creates a saving of administrative weight by combining them. When you chose to have exclusive buyer representation with us, we list your home for just 1% (on the list side) lowering the total down to 4%. This is not a program designed to have customers use us because we’re ‘cheaper’, we understand the importance of the equity needed to buy that next move up home. The increased efficiency of managing both transactions allows us to pass on the savings to our customers.
Does this work with New Construction?
Absolutely. New Construction Agents LOVE this program because of the constant communication about the contingency (listing) transaction. This program was originally built with New Construction Contingency Purchases in mind. After offering it only for New Construction, we realized that our processes were more streamlined when we could help our customers and give them ONE point of contact for their two transactions.