If you found this article there's a good chance you are someone looking to sell your property, and have recently found out about the various commission structures different REALTORS® can offer. I've always said real estate commissions are a topic that there can be quite a bit of ambiguity around. SO, today I will be describing the differences between working with a low commission real estate brokerage and a traditional one.
First and foremost, I’ll say that our company’s mission is to provide the entirety of services you’d expect from a traditional real estate brokerage at a fraction of the cost. We can confidently say that we do the same, if not more, as what other brokerages do for a much lower cost.
Now that likely isn’t a good enough explanation so I’ll break down the differences and similarities between a low commission brokerage and a traditional one, and just what exactly we do different, and you can choose which you think is best for you!
To make this easiest; I’ll answer the most common questions we get about working with Black Sheep Realty and with our low commission approach - you may find you have some of these similar questions as well.
Contact us for a free home valuation!
In short, we consistently provide an extremely high level of marketing for any and all properties we list. Regardless of the price or area; we provide the full range of marketing for your home. In our 1% package we include REALTOR.ca, MLS® exposure, 50 professional photos, dedicated organic social media campaigns, and traditional marketing like lawnsign and keysafe for ease of showings.
At Black Sheep, our philosophy is simple, No BS. Do what works to sell a home, and charge homeowners a fee model that just makes sense.
Not only do we provide a high level of marketing & service for a fraction of the cost, a point of pride of our brokerage is we have a clearly defined and consistent listing package. We provide consistent marketing for every home we list, regardless of price, style, or area. No matter what you may be selling, you’ll receive the type of marketing you’d expect to see on HGTV shows for your property. Conversely, some other companies may adjust their level of marketing based on your sale price, style of home, or location.
Summary
Black Sheep Realty:
- Consistent marketing & service for every home
- Clearly defined listing package
- Higher levels of marketing & services than many traditional brokerages
- High end marketing and services such as professional photography & organic social media content
Other Agents:
- No guarantee of level of marketing or consistent listing packages
- Marketing may fluctuate depending on your list price
- May not offer additional services like video, social, and professional photos, even at the higher price points
Fair question, and the answer is a resounding YES. What about REALTOR.ca? YES. Are they the same thing - well kind of.
That’s the end of this section, you can skip to the next if you like. However, if you’re still curious about how the MLS® works I will debunk a few common misconceptions here.
One line I want you to remember that I tell almost all my clients is; “there’s no secret sauce”. All REALTORS® across Canada have access to the same Multiple Listing Service®, and the same propagated feed that makes up REALTOR.ca
Without boring you with too many technical details - essentially any given MLS® System is administered by that city’s local real estate board, all MLS® systems feed into a centralized feed, which is what is populated on REALTOR.ca, which then feeds into all home search websites.
There is a bit of ambiguity around this issue as there are so many home search websites, BUT, everyone is displaying the exact same listings from the exact same feed. And yes, looking at REALTOR.ca will show you ALL listings currently on the market.
More importantly, YES your home will be on the Association's MLS® System, REALTOR.ca, and over 3000 home search websites in the Edmonton area when you list with us. There's no secret sauce here! In fact, the efficiency of Canada's listing infrastructure is part of what allows a company like ours to exist in the first place.
Summary
Black Sheep Realty:
- Your listing on the Association's MLS® System and REALTOR.ca
Other Agents:
- Your listing on the Association's MLS® System and REALTOR.ca
(The point here is that there really is only one listing feed that all agents have access to, meaning your home is listed in all the same places, regardless of who you choose to list your home with.)
We are a FULL SERVICE real estate brokerage, meaning we also provide 100% of the service you should expect from any other real estate agent. Our consistent listing package ensures we provide a very high level of service consistently across any and all properties we list. More importantly, you don’t have to do anything yourself.
We’re also local agents with our boots on the ground. You don’t have to phone a 1-800 number to get ahold of someone, you get our direct work cell numbers. This also differs from sell by owner and other low commission companies where you may have to arrange showings and get feedback yourself.
On top of that we seek out feedback from every showing. Now, we don’t always receive feedback from the agents who show, but when we do we provide that valuable feedback to you. Typically we make 2-3 attempts for feedback on showings, speaking purely in anecdotes, this is significantly more than what many higher cost agents do.
Summary
Black Sheep Realty:
- Proven showings & feedback systems
- Local agents
- Direct contact and personalized service
- 7 days a week availability
Other Agents:
- May have to do showings yourself
- Central phone lines etc
- May not have consistent or proven feedback system and methodology
Well, this does depends on the sale price of your home. Typically, our low commission plans will save you around 50% on the listing commission side of the sale of your home, and about 25-30% off the total commission when compared to 7/3 brokerages. You can see our fee chart on our seller info page.
Summary
Black Sheep Realty:
- Approximately 50% listing commission savings when compared to 3.5/1.5 fee models on the average priced home in Edmonton & area
- Significant savings over traditional agents on most home prices
Other Agents:
- A large number of brokerages all charge the same "7/3" commission model and do not waiver
- No guarantee of savings or set commission plans (maybe they’ll negotiate a deal with you, who knows)
That’s the best part about our company - we have FULL cooperation with other brokerages. Why? Well, we always recommend offering a competitive cooperative commission to the buyer's agent.
This simply is part of our philosophy of giving you the best and most straight-up advice. Some other companies promise savings on the buyer agent side, but these are not guaranteed, nor are they rarely an effective strategy for selling your home.
And furthermore, our marketing is directed at the buyer and showing off your property. Buyers only care about the home and if it fits their needs, ultimately they couldn’t care less about who the listing agent is at the end of the day.
Summary
Black Sheep Realty:
- Full cooperation from other brokerages
Other Agents:
- May encourage offering lower commissions, even if detrimental to your sale (if a low fee company or Sale By-Owner company)
- Full cooperation from other brokerages if they’re a traditional brokerage
In theory, no. In fact we often do much MORE than many agents at traditional brokerages - why? Well our business model is consistent and scaleable, which allows us to provide more services, more and better marketing, consistently for all our clients.
So, if you’re considering selling your home, and want to know what your home would sell for in this current market and what our company can do for you, contact us for a free home valuation today!
At Black Sheep, our philosophy is simple; No BS. Do what works to sell a home and charge home sellers a fee model that makes sense.
Our goal is straightforward; to help you sell your property, have a smooth and positive selling experience, and help you net more from the sale of your property.
We strive to be just what the name implies; the Black Sheep of the industry. Those who go against the grain, stand out from the crowd, and are juuust a little different from the rest, all with the end goal of pushing the real estate business in a positive direction.
Contact
780-993-8036 (call or text)
info@blacksheeprealty.ca
#1106, 10226 104 Street NW
Edmonton AB
T5J 1B8
Please send conveyancing and invoices to:
info@blacksheeprealty.ca
© 2024 All Rights Reserved
Information Courtesy of Black Sheep Realty. This website is not intended to solicit buyers or sellers already under contract with another brokerage.
REALTOR® , MLS® , and REALTOR.ca are property of the Canadian Real Estate Association. Information deemed reliable but not guaranteed.
"Commission savings" are based on comparing our commissions to a commission of 7% on the first $100,000 and 3% on the balance. "Saving thousands on commissions" is based on comparing our 1% listing fee to a commission of 3.5% on the first $100k and 1.5% of the remaining balance of the sale price + GST. These numbers are used as an example based on their prevalence in the market. Fees are in no way fixed and all commissions are negotiable.
Commissions are negotiable in the province of Alberta. We refer to "traditional agents" and "traditional fees" to describe the 7/3 and 3.5/1.5 fees outlined above, which is a common fee model in the markets in which we operate, but does not in any way insinuate or assume that this is the fee model charged by any given other brokerages.
All commissions are subject to a minimum fee. In Edmonton & surrounding area, we charge 1% of the sale price + GST, or for homes with a list price under $400,000, we charge a flat fee of $4000 + GST on the listing agent side. Our packages are only for Black Sheep Realty as the listing brokerage and does not include cooperating commission to be paid to the buyer's agent.
Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).
BLACK SHEEP REALTY
Sell from 1% Listing Side Commission.
"The People Person's Real Estate People."
