When we say that we’re out to reinvent how real estate works, we mean it.
We want to combine excellent real estate services with better value. One way that we are doing that is by giving full-service at half the typical price.
What’s our secret? How can we charge half of what other real estate agents are charging in commissions?
Full-service at 1.5% commission. You must be wondering if there’s a catch.
There’s no catch. In order to understand how we can charge a low commission, it’s important to know what drives up the cost. There are several factors that can push the commissions charged by real estate agents. There are the operational costs for example:
The cost of maintaining an office can be quite high, especially when the location is in an affluent or high-traffic part of town.
In addition to the operational costs, some agents have to pay anywhere from 30% to 45% of the commissions that they earn to the brokerage firms. That forces some agents to drive up the costs of the commission.
Most real estate agents follow a similar business model. This means that they face a great deal of competition and really have to fight for leads wherever they can find them. This can really drive up their costs. In fact, competition in the real estate industry is so stiff that a lot of sales are made through personal connections and not through some form of marketing.
We do things differently.
We do have an office space to use on a needed basis. But we try to keep everything virtual as much as possible. There’s really no need for mortgages, desk fees, utilities. This results in pressure to get a higher commission to “keep the lights on”.
When it comes to brokerage splits, a similar model is used. For example, agents pay a marketing/branding fund and a corporate fund for each transaction. At Branch and Co. we keep it much lower than 30% to 45%.
So, what does our business model mean for you?
While our business model and financial structure is different from the other players in the industry, we believe that our approach will bring a service to the real estate market. We make sure that our agents are focused and trained to be trusted advisers and neighborhood experts - helping you make a guided move to your next home.
We also provide premium photographs for the homes of our clients. This ensures that buyers will get the best first impression of the homes when they see them in the listings.
We provide full-service at half the price. There’s really no catch.