If you trade stocks, buy music or book travel online, you know you can save big compared to the days before the Internet. While the Internet has made buying and selling homes more efficient, the cost savings haven’t been seen by most consumers. In fact, it still costs around 6% to sell a home. If you’re selling a $600,000 home, that’s $36,000!
Nowadays, agents don’t drive contracts back and forth, clients do much of their shopping online and home prices are much higher. Technology has allowed agents to be more efficient. Does it make sense to charge that much to sell a home? We don’t think so.
The Principal Team offers clients a more modern selling experience and a better alternative. Our team has created a better, faster and cheaper alternative for our clients.
In many transactions, sellers pay 6% of their home’s sales price in commissions; 3% to each agent. When you sell with The Principal Team, you only pay our full service listing agent a 1% commission plus a 2.5% to 3% commission to the buyer’s agent. That’s $15,000 in savings on a $600,000 home.
Team Leader David Lampe explains the “Full Service without The Fees” model:
What made you believe the traditional model had to change?
I come from a background in Web development and Internet marketing. When I became a broker over 10 years ago, I realized that almost all buyers start their home search online and that the Internet had streamlined the entire buying and selling process. Even though the process had changed, consumers weren’t seeing the benefits. I thought a shake-up in the industry was overdue.
How are you different?
Our model is different, but so is our motivation. We want to be the best possible solution for our clients, our team members and the communities we serve. We think our model lets agents provide the best possible service to our clients and our clients save money. We’re also committed to social responsibility and giving back.
Is The Principal Team full service?
Absolutely. We’re beside our clients during every stage of the sale and do more to help clients prepare, market and sell a home for the highest price possible in a timeframe that works for them.
How does the Principal Team charge less and still make money?
We’re doing fine! Home prices are at record highs, so commissions are high even at a lower percentage. We make the bulk of our money assisting buyers. In return for the savings we provide sellers, we ask them to refer friends who are buying and encourage them to buy their next home with us. Our organic growth has been amazing to watch. Because our clients are so satisfied, the referrals we get help save marketing dollars.
How does your approach benefit sellers?
Providing an exceptional customer experience will always be our primary goal. Our clients get a team of specialists, so you aren’t getting one person who’s trying to juggle too many priorities.