Flat-fee Broker Wins Clients with $1,700 Listing Fee
Trelora Realty has drummed up a steady stream of sellers by offering cut-rate commissions.
(Boonton, NJ, December 12, 2013) — The pitch is simple: List your house with the Denver-based company and pay your agent only $1,700. If youre feeling generous and want to pay a buyers agent, you can offer $3,000.
That brings the total commission to $4,700, far less than the $15,000 in fees paid by a seller of a $300,000 home who negotiates a 5 percent commission.
Such discount models largely disappeared when the real estate market crashed, but Trelora founder and Chief Executive Joshua Hunt says consumers are hungry for a better deal than the traditional brokerage model has offered.
Hunt likens a business model to a recipe, and he has been tweaking the ingredients at Trelora. Aside from the discounted fee, Hunt has made another big change: Treloras agents are employees, not independent contractors. His staff of 19 includes seven licensed agents.
To learn more about Hunts intriguing new model, read the December issue of industry newsletter Real Estate Brokers Insider.
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