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Since ComFree expanded our successful Western Canadian company into Alberta 5 years ago, a few people have asked: "Why should I use ComFree if I can use a low-commission real estate company that offers me exposure on the MLS?"
It's a valid question and can be answered in a few words: independence, choice, incentive and cooperation. But before we explain why we're the best option, let's examine how a typical low-commission real estate company works (or doesn't).
For a commission of roughly 1%, a homeowner can list his home with a low-commission company and have it appear on the MLS. When the home sells, half of the 1% goes to the listing agent (the low-commission company) and the other half goes to the buyer's agent.
It's a nice idea, except it doesn't work for you, the seller. That's because low-commission companies rely on the "other guys" to bring buyers, and those "other guys" are full-commission agents. That's a problem because there is no incentive for those agents to bring you their clients.
That's a problem because there is no incentive for those agents to bring you their clients.
It's no secret that homes listed with low-commission companies don't receive the same level of cooperation as homes listed at full-commission, and it's easy to see why.
The low-commission real estate companies should be applauded for trying to give homeowners a low-commission option. Unfortunately for you, low-commission real estate companies are a poor choice. The reduced commissions do not give full-commission agents enough incentive to bring potential buyers to your home. No showings, no sale.
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Which home do you think an agent is more likely to show his client? One where he'll only get 0.5% in commission or a similar home down the street where he'll get a full-commission? On a $600,000 home, this would be a choice between $11,000 (assuming half of a typical 7%/2.5% commission) versus $3,000.
The 1% realtors' approach is flawed because they have to operate within a system that doesn't want them. They have to rely on full-commission agents who don't want to cooperate with them. But if the low-commission MLS model is the poor choice, what makes ComFree the better choice for homeowners?
Unlike low-commission real estate companies, ComFree is completely separate from the MLS. Our listed properties are being sold privately, so they don't have to rely on the cooperation of real estate agents to sell. Our sellers are not dependent on the "other guy."
And while our sellers are selling privately, they can also choose to work with buyer's agents - usually for a commission of roughly 1%. And since this commission does not have to be split and is solely for the buyer's agent, our sellers can offer agents a real incentive.
A ComFree client offering a 1% commission on his $400,000 home would be offering $4,000 in commission. That is the same commission as if they listed with a 1% real estate company, but the buyer's agent will now get double the commission. That means double the incentive and double the likelihood for cooperation. But you would still save $12,000 in commissions from the $16,000 you would have paid had you listed at full commission.
With ComFree you can sell without any agent involvement and pay zero dollars in commission. But you can also choose to work with a buyer's agent for a commission that is fair to them and which will actually encourage their cooperation.
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