The New Alternative Real Estate Brokerages Shaking Up the Market
As the real estate market becomes more modern, clients are looking for new ways to navigate the process of buying and selling their homes. Traditional brokers like RE/MAX or Royal LePage are becoming increasingly antiquated as the real estate game is changing. The price of homes is skyrocketing and most agents are collecting the same percentage in commission, diminishing the value clients are getting for their money. Sellers are typically paying 5% total commission in Ontario. Ultimately, this 5% comes out of the buyer’s pocket as well. Many feel this is unfair and are looking for more responsible and affordable alternatives.
Selling your own home
Some clients are looking into services which allow them to sell on their own. For instance, Purplebricks, a fixed-fee real estate company, charges you $499 upfront and helps you list/ price your home, followed by an additional $2499 upon sale. Unfortunately, clients may feel that they get what they have paid for–there is minimal service throughout this process. Once listed, buying agents are hesitant to show homes, likely due to the fact that they receive no commission under this model. This means that sellers using these services are potentially missing out on large numbers of potential buyers. In the end, half of their clients may be unable to sell their home and therefore could end up turning back to a full service brokerage, in the process losing their down payment with nothing to show for it.
Another option many potential clients explore is a discount brokerage. These services charge lower commissions than traditional brokerages, often at a cost. The stigma of poor service is often true; many discount brokerages are often staffed by young and inexperienced agents trying to gain experience. There can also be significantly less exposure to buyers and reduced help along the way. Clients cannot expect full service with these brokerages and will end up paying out of pocket for additional services to sell their homes.
Hybrid home brokerage
Finally, there is the hybrid home brokerage model, such as the one employed by Justo Home Brokerage. Using an innovative business model which separates the back end work from the agents, the workload is managed by a trained team. Justo’s model gives our agents the time to focus fully on serving you, their clients! Our highly efficient business structure combined with innovative technology provides fantastic service at an impressive price points–we only charge half of a typical commission on a sale.
Breakthroughs in artificial intelligence allow our agents to optimize the selling price of property in a given market. This ensures that clients get top dollar for their home. Justo’s full service agents have an extensive toolbox: they can help arrange traditional staging and open houses, provide 3D virtual tours and staging, create bespoke marketing campaigns, and connect legal services, all while charging only 1.25% commission.
Buyers with Justo receive a 50/50 split of any commission made by their agent. Additionally, Justo has important connections with industry partners such as real estate lawyers and home inspectors, which allow the client to save even more money.
In short, by streamlining the buying and selling process, the hybrid brokerage can return the power to the client. Justo leaves clients with more money in their pocket, and truly allows our clients make the most of their investment.