Brokers Unveil New Discount Models
Discount push resumes as brokers aim for bargain-hunting consumers.
(Boonton, NJ, November 17, 2016) — As consumers continue to exert pressure on real estate commissions, non-traditional companies are pitching business models seeking to capitalize on the notion that agents are simply paid too much for their services.
In one example, an Atlanta discount brokerage is expanding aggressively. In another instance, a startup company from New Jersey says it has found a way to facilitate discounts without disrupting an entire industry.
The New Jersey website Less Percent Real Estate touts itself as something of a dating service for bargain hunting sellers and willing agents. Here’s how it works: A seller visits LessPercent.com and anonymously posts details about the listing.
Agents then bid for the seller’s business, primarily based on price. Less Percent Chief Executive Michael Huegel says the typical commission through the site is in "the low 4s."
Agents who win listings through the site pay a flat fee based on the listing price. The fee starts at $299 for homes listed at up to $299,000, and the fee goes up in $100 increments from there.
After starting in New Jersey, Less Percent has expanded to California and Florida.
Huegel notes that he has gotten little resistance from the industry, in part because discounts have become so common.
"This is the new norm," he says. "The industry is changing."
Details on Less Percent Real Estate and additional business models appear in the November issue of Real Estate Broker’s Insider newsletter.
About Real Estate Brokers Insider
Real Estate Broker's Insider provides residential real estate agency broker/owners with actionable news and information on managing their businesses for greater profitability.