Frequently-Asked Questions.
Q: How can you guys make a profit at 4% when everybody else charges up to 7%?
A: There are three reasons, really. First of
all, the commissions from our listings aren't split so many ways. At
our competitors, your listing is taken by a salesperson who must split
commissions and/or pay desk or other fees to a broker to maintain
licensure. At MWRealty, on the other hand, your listing is taken
directly by the broker, so no in-house split is necessary.
Second, we don't have a network of offices and hundreds of
agents to maintain. So our overhead is lower, and your commission
doesn't have to pay the rent on our fancy offices.
Finally, Montgomery County home prices have skyrocketed over
the past few years. When the going price of a home is $1 million or
more, we feel 2% (half of the 4% we charge) is quite adequate
compensation for us. At prices over $1 million, the other 2% is quite
adequate compensation for the buyer's broker as well.
Remember the services that actually sell homes are:
- A well-written MLS listing.
- A memorable brochure.
- A Web page that helps buyers remember your home.
- Classified ads.
- Availability for showing.
Q: Will I ever have to pay more than 4%?
A: That’s your choice, and it depends
on how you want to treat other brokers who may bring a buyer to you and
us. Ordinarily, we’d split our commission with such a broker, so
they’d get 2% of the sale. Legally, brokers are required to show
home shoppers all homes that fit their requirements, regardless of the
commission. However, most of those brokers are used to collecting 2.5%
to 3% on a sale of another broker’s listing. So, if you want to
provide them with an extra incentive, we’ll offer them a 2.5%
commission, and you’ll pay a total of 4.5%—if, and only if,
they bring you the buyer. If we bring you the buyer, you’ll still
pay 4%. We’ll explain this option to you in detail at the time
you list.
Q: Will my home be listed on MLS?
A: Absolutely. And every broker in the metropolitan area
and anyone accessing the many Realtor® sponsored databases
nationwide will therefore know your home is for sale.
Q: One of the big brokers has offered to cut their commission for me. Why shouldn’t I go with them?
A: Well, look at it this way. If a broker has hundreds, or
even thousands of listings at 7%, and a few, like yours, at 4%, which
ones do you think they’re going to try harder to sell?
Q: Tell me the truth. What are the disadvantages of listing with you?
A: We don’t have thousands of listings or hundreds
of employees. You won’t see us on TV, and you won't see your home
in a glossy magazine-type publication like our biggest competitor puts
out. Then again, think about what is being sold in those ads. The
glossy magazines and television ads take months to produce. They are
designed to sell listing services rather than the houses being listed.
We’ll depend on complete MLS listings, classified ads, lawn
signs, and open houses (if you want them) and/or lockboxes and showing
by appointment to bring us your buyer.
Q: Won’t that take longer?
A: No. TV campaigns and big, splashy ads do
more to attract buyers to the brokerage than to any particular
property. And if you check that glossy magazine publication, you'll
find that many, if not most, of the homes in it were sold before it hit
your mailbox.
Q: So, why should I list with you?
A: First, of course, because you’ll
save money—up to $30,000 on a $1 million home. Second, because
we’ll provide you all the services you have a right to expect
—including some that the 7% brokers don’t routinely provide
(see our "What We Mean by Full Service”
page for details). Third, because you’ll get a more qualified
broker to represent you instead of a sales person. And fourth, because
we provide an attractive package of in-house services from photography,
custom brochure design and production, custom web page design and
hosting, classified ads, distinctive lawn signs, open houses, showing
by appointment, and all the best services for discount prices.
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