Here at Paradise Sharks our mission is simple. To raise the bar on the quality and value of real estate services available to anyone buying or selling real estate in areas we serve. We strive to raise the bar every day. We want professional photographs taken of each listing. We know social media like the back of our hand. We study the metrics of the market daily as we want our clients to be making fully educated decisions. We seek feedback on every showing and provide regular updates to our client so we can react to market changes. We never charge transaction fees. We only use electrically monitored lock boxes. We are different....by design.
And we want to show our clients value in each and every transaction whether they are buying or selling. We have title companies bid for our closings to ensure our clients are getting the best value. And we shout from the roof tops that commissions are negotiable. Services too are negotiable and sellers need to understand what they are getting for their money when agreeing to a commission of any amount. Paying less in commissions does not mean you need to accept a lower level of service. Paying more does not mean that you are getting a higher level of service. Home sellers in paradise can save significant amounts of money and get a higher level of service by interviewing a number of brokerages and finding out what they are going to do to market your property and what it will cost you.
A real estate brokerage is a business and the need to sell a home in Florida is a business decision. And an expensive one, so each dollar is important to a seller’s bottom line. It is why Paradise Sharks goes the extra mile to get bids for closing services. Our clients’ deserve the very best quality and value that we can provide. In Jupiter, so far in 2015, the median single family home sale through the real estate community sold for $425,000. While everything is negotiable, you will find in the vast majority of real estate sales in Palm Beach County the seller will pay the real estate commission, documentary state tax on the deed and the owners’ title insurance policy.
Let’s look at the numbers and it is easy to see that selling a home in Jupiter is not an inexpensive transaction. The cost of the documentary state tax is one thing that is not negotiable, it runs $.70 per $100 in sales price so on that median priced single family home in Jupiter a cost of $2,975. The cost of the owners title insurance policy can vary a bit depending on if a simultaneous lenders policy is required or if any endorsements are required but a solid rule of thumb for the owners policy on that median priced Jupiter home is another $2,200 out of the seller’s proceeds. Before talking about real estate commissions and closing agent fees that $425,000 sales price has already been reduced to $419,825.
Real estate commissions, like everything in a real estate transaction, are negotiable. So far in Jupiter this year the advertised commissions offered to co-brokers on closed single family home transactions have ranged from 1% to 5%. Those sellers who offered 5% were typically developers and a way buyers can save money on new homes by interviewing brokers. When you look at all the Jupiter single family home sales this year the co-broke commissions, more often than not, were either 2.5% or 3%. If we “assume” the co-broke and listing brokerage commissions were the same you see the vast majority of sellers paying either 5% or 6%. On that median single family home in Jupiter those percentages turn into real numbers of $21,250 and $25,500. If you throw in an estimate for title services of $500 the sellers net on that $425,000 sale has been reduced to $393,825 or $398,075 depending on the real estate commission. It is indeed expensive to sell a home in Jupiter.
The good news is the word is spreading and more sellers are getting educated that they can negotiate and receive not only a higher level of service but a lower fee. In Jupiter we have to go back to March to find a month where more sellers paid a 3% co-broke commission than a 2.5% commission. December will mark the 9th straight month where more sellers negotiated better commissions and the numbers are not really that close. Far more home sellers in Jupiter are learning that commissions, and services, are negotiable and to Paradise Sharks this is a good thing.
Whether you are thinking about buying or selling a home anywhere in Martin or Palm Beach County interview at least three brokerages and find out what they will do for you to bring quality and value into the transaction. We would be honored if Paradise Sharks was invited to interview for your business.