One Percent Realty Vancouver Island Ltd.
Donna Goodall Nanaimo, BC
Phone: 250-802-5130 Mobile: 250-802-5130

"Talk to the Expert" interviewed by CKNW



One Percent Realty Ltd. info



Ian Bailey, founder of 1% Realty



 

      The Concept Behind One Percent Realty


One Percent Realty Ltd. was established in the spring of 1999. Market research suggested that the public recognized the value of a "middle man" for showing properties and negotiating a sale, but that they viewed prevailing commission rates as too high. The initial introduction of the One Percent real estate brokerage concept to the public was through a Remax franchise office which initially approved, but then revoked it's approval shortly thereafter. As a result One Percent Realty Ltd. was incorporated. 

Real estate agents spend most of their time soliciting business. In fact, like it or not , most real estate agents feel that half of their job is done the night they list your home for sale. This is contrary to the seller's belief that when their property is listed that is when the REALTOR® job starts. By offering full service at a lower commission rate our salespeople spend less time looking for business and more time doing our job, which is selling your property. 


 

Why Sell Your House Through One Percent Realty
 
 $6,900 versus $17,000 - the savings are HUGE!
 
You want full service on MLS® from a professional salesperson at a low commission – that's One Percent Realty. We provide you full real estate services at a discount commission rate of only $6,900 for all homes under $600,000. $3,000 of that $6,900 flat fee goes to the real estate agent that represents the Buyer. Houses over $600,000 are 1% + $900. We have full cooperation with other real estate agents who sell approximately three quarters of our MLS® listing sales.

Our fully licensed sales proffessionals are members of their local MLS® real estate board enabling them to properly market your property both on REALTOR.CA and their local MLS® system for maximum exposure to potential Buyers. Our real estate agents provide the same real estate services they would if they charged you a higher real estate commission, the only difference is they charge you less, way less. It's the best deal in town, why pay more to sell your home?
 
There has been a lot of recent talk about the Competition Bureau & the recent changes to the MLS® rules
 
Its time to shed a little light on this, at least from our perspective. The new MLS® rules allow for a  REALTOR® to do what is referred to as "mere-posting" a listing onto the local MLS® real estate board. They will charge some sort of nominal fee for this, probably around $500 or something. The idea here is to allow people to market their properties themselves, (For Sale By Owner) and do all of the work themselves.
 
From where we sit, this is probably a good thing. It gives consumers choices, which they previously did not really have. Now as we see it, consumers have 3 viable options:
 
  
Option #1 - Sell it through the traditional "higher commission companies" who will place your property with a local real estate board that operates an MLS® system and provide full service real estate. Depending upon what your home is worth, this will cost a fair amount of money, though it will vary across the country. A $500,000 home can typically cost $17,000 (assuming a 7% commission on the 1st $100,000 and 2.5% on the balance) in British Columbia through a company like this, although commissions do vary in the marketplace.
  
Option #2 - Sell it through One Percent Realty. We will charge you $6900 for this same $500,000 home, with all the services and exposure that you would receive from the traditional higher commission companies. This fee also includes payment to the buyers agent (usually $3000). We do open houses, handle the showings, negotiations, and paperwork that you would expect from any full service real estate company. In short, the services and exposure are the same as you would get from option #1 above, but for way less money.
 
Option #3 - Sell it yourself. You can now put your home with a local real estate board that operates an MLS® system and have your home exposed with all the other listings, and deal directly with the public or salespeople who may show your property. Worth noting, is that since your property is on the local board MLS® system you will have a reasonable chance of dealing with a buyer's agent. These buyers agents expect to be paid. Most likely, they will be looking to the Seller to pay them something, probably at least half of the fees discussed above (the $500,000 home). So again, if we use the $500,000 home as our example, a buyer's agent in British Columbia often will be expecting to receive approximately 3.255% on the 1st $100,000 plus 1.1625% on the balance of the sale price or $7,905 to sell your property plus an additional $500 or so for the FSBO company's upfront listing fee ~totalling $8405.
 
So if you can have the full services of our professional salespeople  for only $6900, why would you not just leave it to a professional?
  
Make no mistake. Our business model would not have worked in the pre- internet era.

Prior to the Internet, Buyers used to get in the back seat of a real estate agent's car and go on a tour of homes. The agent would have his/her MLS® catalogue of homes which he was not allowed to give Buyer's a copy of. REALTORS® controlled MLS® information. This is simply not the way it happens anymore.

Nowadays with the Internet, consumers are empowered and in much more control of their new home search. Over 85% of Canadians who search for a home start their search on the Internet. Whether Buyers are looking for properties themselves on REALTOR.ca, or being automatically emailed MLS® properties directly from their REALTOR®, or other house hunting activities, nowadays Buyer's often know as much or more about their particular market and the homes for sale in it as their REALTOR® does.

It is no slight on other agents, but the buyer basically has access to MLS® and can check www.REALTOR.ca 20 times a day, and their agent will not be doing that, no matter who they are.  These changes in technology and Buyer behaviour created the opportunity for the concept of One Percent Realty to flourish. 

When a Buyer sees a home that meets their criteria and is their dream home they do not ask "How much commission is being paid here." It's not of concern to the potential Buyer. The Buyer is concerned with number of bedrooms, bathrooms, location, schools, and obviously the price.  Our listings are displayed everywhere that all the other listings are.  If you are a buyer looking in a given neighbourhood in a given price range (which is basically all of them), then you will want to see every listing in that neighbourhood in your price range. With the Buyer now in the driver's seat as a much more sophisticated consumer the real estate marketplace had changed forever.  Basically, the fox is in the hen house.
 
Because a good product well priced will sell!! 
 
If your home is well kept, and priced accurately, it will sell. 

It has no relationship with the amount of commission you pay. With extensive experience in project marketing, we realized that there may be an opportunity to market houses in a similar lower commission higher volume manner. Spending most of their time prospecting for business, the conventional agent requires a higher commission structure to compensate for the lower volume/lower listing success rate in the highly competitive real estate industry. With the help of  the technological advances such as the Internet, cell phones and fax machines, One Percent Realty was able to reduce the typical real estate office overhead as well as leverage the productivity advances of its agents to create a successful discount commission business model. Whereby our agents earn less per house sold they make it up in volume of sales at the end of year. It works great for us, and it works great for our Sellers. We say at One Percent Realty, the more deals we do the more money we are saving our clients!
  
The Definition of Market Value 
 
"The highest price estimate, in terms of money which a property will bring if exposed for sale in the open market allowing reasonable time to find a buyer who purchases it with knowledge of the uses  to which it is adapted and for which it is capable of being used." (As defined by the Courts)

Does it say anything about commission?

The concept behind One Percent Realty is that we provide you full service but a discount commission. For that full service on MLS® we charge just $6,900 for all homes under $600,000 and for homes over $600,000 we charge 1% plus $900. The '$900' aspect covers the typical disbursement costs to marketing and selling your home. Our agents provide all of the same services as if they would if they were to charge you a higher commission, the only difference being the amount of commission they charge you. Your 1% agent will help you determine the appropriate listing price, list your home on the local real estate board MLS® system and thus your listing will be on the popular realtor.ca where all the buyers look, enter the listing on the onepercentrealty.com website, take interior and exterior digital photos, place a house for sale sign (if applicable), advertise your property where the Buyers are looking, show your home to prospective Buyers, provide you advice and assistance along the way. Our goal, like yours, is to sell your home.
 
What you save with One Percent Realty   
  
Your House Traditional
MLS® Broker*
Savings
$ 200,000  $ 6,900*  $ 9,500 $ 2,600
$ 300,000  $ 6,900* $ 12,000 $ 5,100
$ 400,000  $ 6,900* $ 14,500 $ 7,600
$ 500,000  $ 6,900* $ 17,000 $ 10,100
$ 600,000  $ 6,900* $ 19,500 $ 12,600
$ 700,000  $ 7,900* $ 22,000 $ 14,300
$ 800,000  $ 8,900* $ 24,500 $ 15,600
$ 900,000  $ 9,900* $ 27,000 $ 17,100
$ 1,000,000 $ 10,900* $ 29,500 $ 18,600
*compared with a broker charging 7% on the first $100,000 and 2.5% on the balance, not all brokers charge the same.


What you get with One Percent Realty
 
  •    Full  Exposure on the MLS® system
  •    World Wide Internet Exposure on REALTOR.ca & onepercentrealty.com
  •    Experienced Professional Real Estate Agent
  •    Market Evaluation
  •    Digital Photos
  •    Responding to Consumer & REALTOR® Inquires
  •    Showing the Property to Prospective Buyers
  •    Assisting the Seller in Negotiating Favorable Terms & Conditions with an Offer
  •    Cooperating & Assisting Other Brokerages Working with Buyers
  •    Assisting in the Completion & Possession process
  •    Newspaper Advertising (if applicable)
  •    Open Houses (if applicable)
  •    Signage (if applicable)
  •    Full Service Brokerage at a Fraction of the Cost
     
Will Other Agents Show My Home

The simple answer is yes. Our MLS® listings are shown, and sold, by lots of Cooperating REALTORS® all of the time. Logic would dictate that if our system was unable to attract Cooperating REALTORS® to sell our MLS® listings then we would be selling most of our own listings to our own Buyers. In fact, its quite the opposite. Over 70% of our listing sales are sold by Cooperating REALTORS® representing the Buyer which is inline with industry standards. That is the proof in the pudding that our system works great. 

Why is that. We believe it is two reasons. Firstly, our listings (under $600,000) typically offer $3000 commission to Cooperating Brokers. While $3000 might not be as much as some of other listings, it still is a decent amount of money for a paycheque for Canadians these days including a lot of sales professionals. The more important reason why other agents cooperate and sell our listings is that it is the Buyers who are dictating the shots these days. As mentioned above, if the Buyer loves the home does the amount of commission matter to the Buyer? 

You Owe it to Yourself & Your Hard Earned Equity 
 
Spending $12,000-$20,000 or more to sell your home is a lot of money. If you are thinking about selling your home call your regular agent that you used last time, but this time also call us to compare our services and commission rates. Being full service agents, our agents provide free no obligation market evaluations just like the other guys. Please don't let someone else tell you about our system, let us tell you exactly what we will do to sell your home. You and your hard earned equity will be glad you did.
 
“The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.”

info@onepercentrealty.com

Frequently Asked Questions ( FAQ )

1. What is the deal exactly, with One Percent?

We are a fully licensed real estate company that offers full service but at a discount commission. In terms of services and exposure, we are identical to whoever you would like to compare us with. We are on the local board MLS® system, all the top internet sites, we place a sign on your property ( if it's allowed ), we show the property, hold open houses, advertise it, handle all the negotiations, plus the conveyancing. There is nothing that you are not getting, except for a high commission!


2. What do you charge? 

We charge $6,900 for properties under $600,000. For properties over $600,000 we charge 1% plus $900. It is as simple as that.


3. Are your listings on  the MLS®  system and REALTOR.ca? 

Yes, and yes.


4. What if a buyer has his own agent? Do I have to pay them? 

The $6,900 commission includes $3,000 of commission to whomever represents the Buyer. In a typical sale under $600,000 with 1% representing the Seller and the Buyer being represented by a Cooperating Brokerage: the 1% listing agent earns $3000, the cooperating Brokerage earns $3000, and the remaining $900 pays for the 1% agent's expenses in selling your home. As a matter of passing interest, roughly 70% of our listing sales are sold by Cooperating outside agents through the Multiple Listing Service which appears to be roughly industry standard. If an agent tell you that our listings are not sold by other agents, they are simply lying. We have years of MLS® statistics to prove it. 


5. Other agents have told me that if I list with One Percent Realty, agents from other companies will not show my house because they don't get the same amount of money. Logic would dictate, that they are going to sell the house down the street where they get paid more money if their clients buy it. Do agents boycott your listings? 

Our listings are shown by cooperating salespeople everyday just like other listings on  the MLS® system. We cannot measure showings that we don't get. What we do know is that 70% of our listings are sold by cooperating agents. Would they rather have more money? Of course-no argument. But the fact is, our listings are displayed everywhere that all the other listings are. All our listings are on the MLS® system, all the top internet sites, have a sign on the lawn, are in the real estate paper, and we do open houses. So if someone is looking for a home in your neighbourhood, in your price range, they are going to know it is for sale. That buyer is going to look at whatever is on the market before they make their decision. Buyers don't pay the real estate commission, so why would they care which house they buy? If their agent is unhappy with what we pay, the buyer will call us. But the fact is that the agents show & sell our listings, every single day. All of our sold signs over the years prove it! 


6. Are there any hidden fees? 

When you sign the standard Multiple  Listing contract with us, it lays out exactly the commission cost to you. If you are selling a Strata property, there are some strata documents that will be required to provide in a sale. A strata document package can typically run between $50-$100 and you will be responsible to refund your 1% agent for those costs. If you are selling a fee simple lot, periodically there are charges on the title search that your 1% agent will need to pull from Land Titles such as easements and building schemes. Land titles charges about $15 per charge.   


7. What if I want to do 'even more' advertising than my 1% agent's marketing plan? 

You are in control of the advertising of your home. If you want additional advertising beyond the marketing plan of your 1% agent then great, but you will be responsible for the additional cost of such. Your 1% agent will require your approval before spending such additional expenses.


8. I have been told that other agents sometimes ask for more commission than is being offered on MLS® with an offer. Can you respond to this. 

Buyer's agent, with the consent of the Buyer, can ask for additional commission with an offer. As the Seller you will decide what you wish to do with such a request - it is 100% your choice. Your 1% agent will explain to you that the vast majority of our Seller's decline to pay such requests and almost of all those offers still proceed normally. That being said, some of our Seller's decide it is in their best interest (i.e. they are happy with the offer as is) to pay some/all of the requested commission increase. Even in those situations, our Seller's still save a good deal of money on the listing side of the commission versus the more typical listing commission rates. 
 

9. How much can I save with One Percent Realty. 

  
Your House Traditional
MLS® Broker*
Savings
$ 200,000  $ 6,900*  $ 9,500 $ 2,600
$ 300,000  $ 6,900* $ 12,000 $ 5,100
$ 400,000  $ 6,900* $ 14,500 $ 7,600
$ 500,000  $ 6,900* $ 17,000 $ 10,100
$ 600,000  $ 6,900* $ 19,500 $ 12,600
$ 700,000  $ 7,900* $ 22,000 $ 14,300
$ 800,000  $ 8,900* $ 24,500 $ 15,600
$ 900,000  $ 9,900* $ 27,000 $ 17,100
$ 1,000,000 $ 10,900* $ 29,500 $ 18,600
*compared with a broker charging 7% on the first $100,000 and 2.5% on the balance, not all brokers charge the same.


 “The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.”