Benefits Of Low Commission Rate Real Estate Agents

Sell

Home sellers wanting to keep more of the proceeds from their home sale should consider hiring a low commission rate real estate agent. But, not all low fee real estate agents are created equal. Regardless of where you are from, this post will help you with what to look for and what to ask when thinking about hiring a low commission fee real estate agent.

What Is A Low Commission Real Estate Agent?

A low commission real estate agent charges a real estate commission fee lower than most other real estate agents in a geographic area.

Low commission real estate agents charge less than nearby competitor agents without reducing the services provided to the client. A low commission real estate agents model focuses on volume and efficiency. Additionally, these agents are more likely to spend time targeting specific types of clients. Quadwalls Connected Agents are these types of low commission real estate agents.

Is A Low Commission Real Estate Agent Respectable?

Low commission real estate agents are reputable. I most commonly use airlines as an analogy. Some airlines have fancy lounges, first-class seating, and in-flight meal service. Other airlines throw peanuts at you as you walk down the jet bridge.

Regardless of the perceived perks of overpaying for your ticket, both airlines use the same fuel, have staff with the same training, and that staff must follow the same air travel regulations. Each airline must get you to your destination safely.

Low commission real estate agents must follow all the same laws, rules, and regulations as any other real estate agent. They just work on tighter margins. Instead, real estate agents with low commission rates have less room for errors compared to agents who charge higher, more typical real estate commission fees.

Home sellers hiring a low-fee real estate agent should remain focused on whether the real estate agent, regardless of the fee, will get your home sold at an acceptable price in a way that is convenient to you.

Ways To Learn About A Low Commission Real Estate Agent

Home sellers can verify a low commission real estate agent is reputable in the same ways they would verify the reputation of any other real estate agent.

• Read online reviews from past clients
• Ask the agent for evidence of his or her home sales over the last 12 months
• Learn how the person has been a real estate agent
• Find out how active the agent is in real estate compared to other real estate agents
• Check for unresolved complaints with the Better Business Bureau and your state’s professional licensing agency
• When interviewing a low commission Realtor® assess the agent’s competence and professionalism

How Low Commission Real Estate Agents Make Money

Wondering how low commission real estate brokers work? There are many different business models which agents use to run a profitable low commission real estate business.

Low Commission (Percentage)

The easiest to understand low commission real estate agent model is the low commission percentage model. Here, the real estate agent offers all of the same services as a full-price real estate agent, but is able to complete the work at a lower cost. The Quadwalls Real Estate Team falls under this category. We offer a full-feature home selling service with low real estate commission fees.

Low Commission (Flat Rate)

Flat rate real estate agents offer a set of services in exchange for a flat rate regardless of the home’s sale price. A home seller and a real estate agent agree on a commission fee. The home is then put up for sale. For example, say the list price is $350,000. With a flat rate model even if you agree to sell the home for a lower price the agent’s commission fee does not change. This is because it is a flat rate regardless of the home’s sale price.

The Hybrid Model

Hybrid models are attractive to home sellers who want to reduce the real estate commission fee and who have a DIY spirit. The services provided to sell your home are on an a la carte basis. Home sellers can select which functions they want the real estate agent to perform. The real estate agent usually has a flat rate charge for each of these different tasks.

The 2-For-1 Model

The most common 2-for-1 real estate model is to sell your home for free or at a highly discounted commission fee in exchange for a commitment to buy your next home with the same real estate agent. Though this can greatly reduce your real estate commission fees, this type of model has the finest print. This is due to the fact there are so many possible outcomes when running the 2-for-1 model. During late 2020 through the first half of 2021, the Quadwalls team tried this. We have since abandoned the process because we felt it was too confusing for consumers.

No Commission Model (Flat Fee MLS)

There are real estate brokerage companies with access to regional multiple listing services who for a flat fee will have your home submitted to the MLS. These firms usually offer no other services to their customers. Instead, for a flat rate, the brokerage company places your home in the database. The listing is then syndicated to other real estate websites. Essentially, think of this model as having no real estate agent at all.

Can I Negotiate Real Estate Agent Commission Fees?

Don’t be nervous asking a Realtor® to lower commission. Yes, you can negotiate real estate agent commission fees.

Some agents of brokerage companies may refuse to reduce their fees. However, most agents will reduce the fee especially if you have a home that will be easy to sell. I have written a guide article on how to successfully negotiate for a lower real estate commission fee when hiring a real estate agent to sell your home.

Flat Fee (Discount) Brokerages

Most commonly, a flat fee agent will place your home in a multiple listing service (MLS) database and get you access to the correct forms. Services usually stop there. Home sellers are often on their own with regards to responding to offers, inspections, and navigating the process. Some discount agents will give a seller an a la carte menu of services. Home sellers can select which services they would like to use.

How Much Can You Save With A Low-Commission Agent?

It is difficult to say how much you can save with a low commission real estate agent. This is due to the fact there are far too many variables to specifically answer this. However, home sellers should know that they can save thousands of dollars by working with a low-commission real estate agent.

What To Think About When Hiring A Low Commission Real Estate Agent

When deciding on should you hire a real estate agent you should be focused on what services you want the agent to provide. This is what should guide both whether or not you hire an agent and who.

Your Home Selling Experience

Many low commission real estate agents offer skinny listings or ala carte services. For example, maybe the low commission agent will put your home in the MLS (multiple listing service) and get you access to the forms. However, the agent may not help with managing showings, collecting feedback, negotiating an offer, or working through the pinch points such as a buyer’s home inspection response or appraisal miss. If you have a lot of home selling experience you may be comfortable picking up the slack. On the other hand home sellers with less experience should be wary of what they themselves can really do successfully.

Risk of Dual Agency

Dual agency is when an agent is on both the listing and selling (buying) side of the transaction. Dual agency has some special circumstances when it comes to dual agency. From a pay perspective, the selling side (buyer side) has much more compensation tied to it. Despite all of the ethics duties an agent must follow it can be easy for some agents to be dissuaded by dollar signs. The meager pay on the list side could reduce an agent’s loyalty to you as the seller.

Possibility Of Underselling

Low fee Realtors® may not broadly market your home to the audience of buyers. This is the number one cause of underselling a home. Underselling is not realizing the true value of the home. The best way to prevent underselling your home is to maximize the home’s exposure to as many active home buyers as possible.

Your Own Research

• As with hiring any professional service provider you should do your own research. Here are some items to research when looking for agents offering low cost real estate commissions.
• What services does the agent provide?
• What services will the agent not provide?
• How will your home be advertised to the active buyers?
• What have past clients said about the agent’s services?

Average Time To Sell A House In Indiana In 2022

Home sellers have alternatives to substantially lower real estate commission fees. In some cases, home sellers can even get the fee down to zero dollars.

For Sale By Owner (FSBO)

For the ultimate thrill-seekers and DIYers, you can try selling your home for sale by the owner. There are no real estate commission fees when selling a home FSBO. The only exception to this would be if you agree to offer a commission to an agent who contacts you with a buyer in tow.
When selling your home FSBO it’s all on you. Marketing, advertising, managing showings, responding to offers, inspections, and appraisals is all up to you. Selling a home takes much more time and attention to detail than you believe.

Additionally, many studies have been conducted which indicate a home listed widely with a real estate agent has a great potential of receiving a higher sale price even with real estate commission fees included. Home sellers should be careful not to underestimate the time needed and the potential for negative repercussions of selling their homes themselves.

Flat-Fee MLS Service

Some brokerages exist simply to place home sellers’ homes in the MLS database. This is a great way to cheaply maximize your home’s exposure online.

Home sellers provide the brokerage with photos and information about the home. The brokerage uploads this information to the MLS in your area. MLS databases syndicate the listings in the database to websites owned by associated real estate agents and brokerages and any real estate websites with a syndication agreement.

Home sellers should not expect to receive any other agency-related services from a flat-fee MLS listing service real estate brokerage. Additionally, be prepared to offer a commission to cooperating real estate agents. Declaring and providing some amount of compensation to cooperating brokers is often required when placing a home into an MLS database.

iBuyers

Real estate iBuyer programs often have no commission expense. An iBuyer is a company that purchases homes with cash. iBuyers often offer amazing terms such as allowing you to pick a guaranteed closing date, post-closing possession and often do not request repairs after an inspection. Some iBuyers entirely skip inspections. But, like everything else in life these amazing terms come at a cost.

iBuyers offer home sellers low prices. iBuyers take on a lot of risks and will re-sell your home into the open market once the purchase is complete and you have moved out of the home. Do not be surprised to get an offer as low as $0.70 on the dollar for your home. Additionally, many iBuyers will only buy homes they consider to be highly sellable.

We Buy Houses For Cash Companies

It’s likely you have been in your car at a stoplight and seen a sign which says, “We buy houses cash!” There are many companies online and in communities who will buy your home cash. These companies are essentially the same as iBuyers. House-for-cash companies will buy your home on favorable terms to you but at a low price. Additionally, you are more likely to run into real estate wholesalers here. This means the buyer can assign the contract to some other buyer who will fulfill the terms of the contract. In conclusion, house-for-cash companies can offer you great terms but will likely offer a low price.

What To Know About A Low Commission Real Estate Agent

When the question of should you hire a real estate agent with low-cost real estate commissions, sellers need to be aware of red flags from a Realtor®.

Services You Will Receive

Some low-commission real estate agents do not offer a full-feature home selling service. When hiring a low commission Realtor® you should ask which services the agent will provide. Will your home be placed in your region’s MLS? Will your agent manage showing requests? Does the agent’s program include helping you understand any offers you receive? Each of these is important for the overall marketing of your home as well as a smooth home sale.

Dual Agency Scenarios

Some low commission Realtors® primarily focus on selling your home as a dual agent. This means the agent represents both you the seller and a buyer. The dual agency presents the risk your agent could unintentionally stray from representing what is in your best interest. The best way to address this is to speak with your agent before hiring him or her about dual agency situations. Additionally, ask the agent what he or she intends to do to attract other real estate agents with buyers to show the home.

Risks Of Underselling Or Under Marketing Your Home

Low commission real estate agents most commonly shortchange home sellers when marketing the home. Even many full-fee real estate agents will list your home and do little else to get it sold. Ask the listing agent to specifically name the things he or she intends to do in order to get buyers in your home-making offers. Also, get these activities in writing so you can hold the agent accountable. If you do not believe a low commission real estate agent can properly market your home then you probably shouldn’t hire one.

Questions To Ask When Interviewing Low Commission Real Estate Agents

These are the most important questions to ask a low commission real estate agent. Answers to these questions make it easier to detect any real estate agent’s red flags.

1. How long have you been a Realtor®?
2. How long is the listing contract?
3. How can I terminate the listing contract?
4. What is the real estate commission fee you charge?
5. How can you charge such a low fee?
6. What services will you provide when selling my home?
7. Regarding communication, what can I expect from you while the home is listed and once an offer is accepted?
8. Where can I read reviews from your past clients?
9. What will you do to bring buyers to my home and get them making offers?
10. Overall, why should I hire you to sell my home?

Why Choose Quadwalls Low Commission Realtors®?

The Quadwalls Real Estate Team offers home sellers a full-featured home selling service with low-cost real estate commissions.

Low Commission Real Estate Agents In Northwest Indiana

The Quadwalls Real Estate Team is led by me, real estate agent Chuck Vander Stelt. I entered the real estate industry to offer home sellers low real estate commission fees.  My team and I spend our days meeting with clients, listing their homes, completing transactions, and saving our clients in Northwest Indiana thousands of dollars in real estate commission fees.

Areas Where Our Low Commission Rates Are Available

The Quadwalls Real Estate Team offers our low real estate commission fees throughout Northwest Indiana. Quadwalls Connected Agents can help you with selling or buying a home in these Indiana counties: Lake, Porter, LaPorte, St. Joseph, Newton, Jasper, Starke, White, Pulaski, Marshall.

Quadwalls Connected Agents can help you sell or buy a home in over 60 Indiana cities and towns including Valparaiso, Portage, Chesterton, Kouts, Crown Point, Schererville, Dyer, St. John, Merrillville, Hobart, Gary, Munster, Highland, Hammond, Westville, Wanatah, Michigan City, LaPorte, New Carlisle, Rolling Prairie, DeMotte, Wheatfield, and Hebron.

Take a look at the Quadwalls service area map.

Benefits Of Quadwalls Low Commission Real Estate

Home sellers who hire use to sell their home can save thousands of dollars in real estate commission fees. This leaves more of your home sale proceeds in your pocket.

1. Quadwalls Full-Feature Home Selling Service Commission Rates

I offer upfront pricing. Quadwalls real estate commission rates are posted right here for you to review. This way you know the real estate commission fee before you even contact us. Take a look at the graphic below.

Find Your Home Sale Commission Rate

We charge you a fee based on the original listing price of your home. For example, using the table above, a home seller who intends to list a home for $325,000 would be charged a 3.10% real estate commission fee.

Yes, we will help you determine the market value of your home. Additionally, if you lower the price of your home after you list it for sale the commission fee does not change. The rate is based on the original listing price of your home.

What About The Buyer’s Agent Commission?

The buyer’s agent commission is already included in these rates. It is an enticing and motivating rate. We will place your home in the multiple listing service (MLS). Doing this requires us to offer a portion of the commission fee you have agreed to with any agent representing a buyer. But don’t worry, this is already factored in to the rates you see posted here.

How Is Our Low Real Estate Commission So Low?

We’re really good at what we do. But seriously, it is because ever since I started in the real estate industry I wanted to find a way to offer home sellers a low real estate commission fee. Think of it like this: The person who never looks up the recipe for apple pie will never make one.

On day one, I started working on my recipe to offer the lowest real estate commission fees in Northwest Indiana. Here, with more specificity is how I do it without sacrificing marketing or customer service.

I focus on keeping my operating costs low. My team is hosted at a brokerage, Listing Leaders, which actually keeps my costs lower than owning my own brokerage. I push on the vendors I use in order to get the things I need for less. I do not have a support staff. Instead, me and the other agents on the team do the work to get the job done. Therefore, there is no scheduled payroll for me to pay.

Secondly, we focus on attracting the business we want. Our business is an efficient one, and we work diligently to attract clients who will allow us to work efficiently. We have turned down business because of perceived difficulties and interference with our efficient methods.

Lastly, marketing. Marketing is everything in our business. Knowing which marketing is effective to attract the most the right clients to know exactly what to do to market our clients’ homes for sale helps us run an efficient business. We know marketing, and we know it well.

2. Marketing Services Provided With Our Low Commission Home Selling Services

Me and the team of Quadwalls Connected Agents offer a full-featured home selling service. The first step is a pre-listing consultation. This is to answer your questions and to let us ask questions to learn about your home and your needs and wants from the home sale. We will also provide any advice needed to have the home market-ready and a recommended listing price.

Once the home is ready to be listed we get high-quality photography completed, shoot any walk-through or drone videos we want, get the sign in the yard, and write the marketing remarks. The home is then placed in the MLS.

To maintain momentum after listing we drip more marketing on the buyer audience each week. This includes email blasts to buyers and other Northwest Indiana real estate agents. We also use social media posts, advertisements on our website, and other online placements. We do offer to complete an open house if you would like one.

Lastly, our services are end-to-end services. Once you receive an offer we will help you understand the offer and advise you on whether to accept it or to counter it. After accepting an offer we remain by your side to help you respond to inspections and ensure the transaction continues progressing towards the closing table. Lastly, we will sit next to you at the closing table.

The Quadwalls home selling service is a full-featured listing with end-to-end client service. We are full-service Northwest Indiana Realtors with a low percent real estate commission fee.

3. Buying A Home While Selling

We have helped many clients sell and buy a home simultaneously. Yes, we can help you find and buy a home. Additionally, we can monitor both transactions in tandem where they run as two parallel lines so everything lines up. The moment you make a decision that could negatively affect your goals of buying and selling at the same time I assure you, we’re going to be the first to tell you are doing such a thing.

Selling and buying at the same time is just an added element to your fact pattern. We know how to accommodate the situation because we have done it many times.

Conclusion

Low commission real estate agents make money by running a business with a profitable business model. There are different types of low-commission real estate agents, too. What is most important is that you understand what you are getting with the specific low commission real estate agent you are hiring.

Home sellers who ask the right questions can detect real estate agents’ red flags. I can not stress enough home sellers need to get a specific, committed answer from a real estate agent about what services he or she will provide. Additionally, make sure you know how involved the agent will be once you accept an offer.

If you looking for a full-feature home selling service and a low real estate commission fee check us out.  Click here to learn more about everything we offer.