Monday, December 10, 2012

Percentage Commissions don't make sense

No matter how you slice it there is no way percentage commissions make sense.  Sellers in Lanoka Harbor, Forked River and surrounding towns in southern Ocean County can avoid high commissions.  Here is an example of why the Help-U-Sell set fee system eases the pain for home sellers:

The vast majority of home sold in this area, excluding Seaside Heights and Long Beach Island, sell for between $150,000 and $450,000.  Now lets look at a $150,000 seller, a $300,000 seller and a $450,000 seller.  At any given percentage seller #2 pays DOUBLE what seller #1 pays and poor seller #3 pays an astounding TRIPLE!! for essentially the same service.  That's crazy!  Now, does reducing the commission percentage help?  No.  Let me show you.

$150,000 x 5% = $7,500 commission

$300,000 x 4% = $12,000 commission

$450,000 x 3% (if you could find it) is still $13,500 in commissions.

So lowering the percentage does not help!  Percentage real estate commissions are totally unfair.  There is no relationship between the amount of commissions paid and the value of services rendered.  The sale of the $450,000 house is the same as the $150,000 house.  If you took and Chevy and a Lincoln to the car wash you pay the same because the car was is the same.  Does your doctor or dentist ask how much you make before quoting the cost of a procedure?  Of course not -- it makes no sense.  And neither does percentage based real estate commissions.

The Help-U-Sell set fee system has saved sellers over TWO BILLION dollars in unnecessary commissions all across our country since 1976.  Why not you?  Selling through Help-U-Sell is like buying a Pick 5 Lottery ticket and knowing your the winner when you buy it.  Why not cash in now?  (In NJ all commissions are negotiable.  Bay Beach Realty is an individually owned and operated member of the Help-U-Sell franchise system)