Who has heard a Realtor say, “The seller pays my fees… my services are totally free to you.”? I hate to burst their bubble but this is simply not true. There is no transaction without the Buyer’s money. The truth is the Buyer pays for everything. The Listing Agent, the Buyers Agent, and the Home.
Consider the median home price in Los Angeles is $618K. With a 6% fee that means $37,080 in Realtor fees total. $18,540 just for the Buyers’ Agent.
This is the case even though technology has reduced the cost and effort required by the traditional residential real estate agent. 90% of home buyers search online first. 68% find a home without the help of an agent.
What most Home Buyers really pay for is their Agent’s ability to negotiate in order to get the best price. The unfortunate reality is that buyers’ agent’s interests lie with the seller, not you. Remember the traditional agent (buy and sell-side) is paid a commission on the final sale price.
Higher the price = higher paycheck for your buyers’ agent.
This fact is why there is a lack of trust in the current residential real estate model. To the point of litigation against the National Association of Realtors, Keller Williams, Remax, and several others. Check this out.
The Acuity Solution
I’m the Founder & Head of Strategy at Acuity Realty. A start-up brokerage taking a client-centric approach to the residential real estate transaction experience.
We founded Acuity to bring residential real estate in line with today’s expectations of quality, experience, and transparency. To serve as a model for exceptional service and social responsibility in an industry lacking it.
What we’ve done is align our Buyers’ Agent’s interests with our clients. Our Home Investment Advisors are compensated based on client satisfaction, not the selling price. During the consultation phase, we identify goals and key performance indicators (pricing, timeline, transaction experience, etc.) to make clear what success looks like and are rewarded based on hitting those factors.
We ultimately want our clients to make better real estate decisions with a pressure-free experience. Peace of Mind from Search to Settlement.
- Work with a local licensed real estate advisor (Fiduciary)
- Streamline the chaos with constant communication supported by tech.
- Dedicated mortgage shopper
- Access to Private Listings
- Aligned Goals
My goal is not to attack traditional agents. However, it’s about time there is transparency so that consumers can make an educated decision on one of the largest investments of their lives.
I do believe most realtors are well-intentioned. And our vision is not to disrupt the industry but to serve as a model for exceptional service and social responsibility in an industry lacking it.