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Other Ways of Pricing - Alternative Real Estate Business Models

The traditional full commission model is being challenged.


In our consumer focused capitalist society, business must continually adapt to meet the needs of their customers. Real estate is no exception. The traditional percentage of sale price commission model for a "full bundle" of services is being challenged by multiple other viable business strategies.

1. Discount Real Estate Commissions

Take the traditional percentage of selling price model, reduce the commission percentage below the perceived prevailing local rates and you've instituted discount commissions. There's more here to know.

2. Real Estate Rebates

Rebating a portion of the real estate commission to the seller, or more likely the buyer, is a viable marketing and business practice. Learn how it's employed to get more buyer business and possibly to reward buyers for doing part of the work of the real estate professional.

3. Fee For Service Real Estate

A growing number of real estate brokerages are un-bundling the traditional "full service" package of services and offering to perform some individual services at flat rate pricing. They also can develop mini-bundles of services into packages and offer those at flat pricing. See how it works here.

4. MLS Only Real Estate Listings

This hotly-debated practice is to list a property on the MLS for a seller at a low price, but provide few or no other services when it comes to showing the property, negotiating contracts or helping with transaction services. Learn why it's a hot button.

5. Real Estate Consulting - A New Way of Thinking

Do you perceive yourself as a knowledgeable professional with a great deal of value to bring to your real estate clients? Perhaps you'll want to look at a whole new way of presenting yourself and pricing your services. That's real estate consulting.
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