The Traditional Breakdown
Since at least the 1960s, when customers choose an agency to sell their home they agree to pay a commission based on a percentage of the sales price. The commission is negotiable, but most aren’t willing to be flexible. The national average is between 5% to 6% and has been the same for decades. The agency that sells the home also agrees to split the commission (usually half) with an agency that finds a buyer. If you’ve ever wondered how buyer’s agents get paid, now you know: they get paid from the agency that sells it.
For example, if you agree to sell your home and pay a 5% commission, then once your home sells the listing agent will keep 2.5% and the agent that represents the buyer will be given 2.5%.
Alpine Real Estate’s Approach (For Homes Priced $200,000 to $499,999)
The internet has fundamentally changed how real estate is bought and sold. The industry is slowly evolving to reflect these changes. There are many new approaches being applied that make the costs of selling a home a lot more fair to the customers. Alpine Real Estate has chosen to adopt a flat rate approach. We still provide the full services of a traditional agency, just for less.
Rather than have you pay solely a percentage of the total sales price, we charge a flat rate commission of $3500. No more, no less. We believe it is a fair cost for our services.
We still charge 2.5% of the sales price that we offer to give to agents who find a buyer. This helps ensure your home gets the most attention to sell quickly. We can’t change what other agents have come to expect. But we can reduce what we charge to help you save.
The Bottom Line
You can save thousands of dollars for the same results by choosing Alpine Real Estate and the modern approach.
You only pay a commission when your home sells. There are no upfront costs. If your home doesn’t sell, you pay Alpine exactly zero. If you decide to take your home off the market for any reason, there are no penalties or fees.
The national average for a commission to sell a home is between 5-6% of the sale price. We don’t believe it should cost 6% to sell your home. That’s why we introduced our flat-rate commission. For homes between $200,000 – $499,000 we only charge $3500 for our side of the transaction, and still offer 2.5% to an agent that finds a buyer. There are zero upfront costs. You only pay when we sell your home and its due at closing from the proceeds.
For homes at or over $500,000, we still offer a competitively low rate of 3.5% commission. Alpine takes 1% and provides 2.5% to the other side.
Typically when a home is sold, the selling agency charges a commission. The national average is between 5-6% of the sale price of the home. This commission gets split 50/50 between the buyer’s agent and the seller’s agent.
For example, if a home is worth $300,000 and the seller agrees to pay a 6% commission, the total cost to the seller would be $18,000. The buyer’s agent would get $9000 from the transaction, and the seller’s agent would also get $9000 as their share.
Instead of charging 3% of the sale price, Alpine charges a flat-rate of $3500 for being the seller’s agent. The buyer’s agent still receives their share, but at 2.5% of the sale price. In doing this, Alpine reduces the cost of selling a home while still ensuring buyer’s agents have a good incentive to sell the home to their clients.
Using the same example from above, the total a seller would now pay is $11,000. The buyer’s agent would get $7500, and the seller’s agent (Alpine) would get $3500. That is a savings of $7000 for the exact same results!
The commission is paid out from the proceeds of the sale at the time of closing. There are no upfront costs. A commission is only paid when the home sells. If for some reason it needs to be taken off the market (if you decide not to sell) nothing is owed.
Your agent will perform a Comparative Market Analysis, then work with you to determine the most competitive starting price for your home.