In its September issue, Consumer Reports magazine reveals the results of its poll of more than 9000 home sellers. The results show consumers are equally satisfied with the service provided by companies that charge 6% or 7% and with the service provided by companies charging less. That makes absolute sense to me because there is no correlation between charging 6% or 7% and the level of professionalism and service to be provided by a real estate company. In fact, research conducted by university professors concluded that it was not the level of service to be provided or the cost to provide the service that explains that continuation of the 6% or 7% commission, but rather, it it simply anti-competitive behavior.
The Consumer Report survey shows that sellers who paid the full commission were more likely to express regrets about the transaction process. That also makes sense to me because the requirement of 6% or 7% off the top, no matter how the market is behaving, is an impediment to a smooth and easy transaction. We call the impediment the “commission block.” This means that the high commissions to be paid off the top results in sellers being unable to sell to a larger pool of buyers, who are unwilling to pay the higher listing price, which is inflated in an attempt to cover the commission. So the homes just sit until the seller adjusts the price.
Good and welfare! 10665 Clarence Center Road just sold for $259,000, full asking price, in the first weekend. There was incredible action with more than one potential buyer. The price per square foot shows that the house sold just right! No commission. The buyer told me that he and his fiance search both America’s Choice and Buffalo Niagara Homes when searching for a home. That is exactly what we know people do. They search both America’s Choice for no commission homes and they search either realtor.com or other websites that have Realtor homes. Simple. Happy people on both sides!
9 Crystal Springs in East Amherst sold for $233,000 in late July. No commission! Again, the price per square foot shows the seller received absolutely full price and paid no commission. They buyer got exactly the home they wanted. Nobody had to wait for the seller to lower their price to market value because there was no commission block.
Have a great day everybody!
