Doing Real Estate Differently
We take care of your every real estate need. We can represent the sale of your home, walk you through the process of buying a home, or consult with you on how to manage property you already own.
As real estate prices have risen, and consumers realize how much money they are handing over to real estate agents in commission, some new business models have evolved, seeking to reduce commissions and put more money in clients’ pockets. This is a trend that actually comes and goes over time.
The founder and broker of Land Park Realty Group has been operating with a reduced commission model for years for friends and family and would now like to bring the savings to you.
So, how does it work?
How is buying or selling a home with LPRG different?
Let’s analyze a typical commission structure. In California, it is typical for the seller of a home to offer 2.5 or 3% commission to the agent/broker that brings a buyer to purchase the property that they have listed. The owner/seller of that property has also agreed to pay the “listing agent” 2 to 3% to sell the house they have listed. This means that an owner/seller of a house is paying anywhere from 4.5% to 6% in commission. For simplicity, assuming a $1,000,000 sale, the seller of the property is paying $45,000 to $60,000 in commissions to sell a home that in this market will likely sell very quickly.
Let's Break It Down
All transactions must be done fairly and ethically
What is Our Business Model?
LPRG was founded based on a love of real estate, property and helping people with what is usually one of the most important and valuable transactions of their lives. That is why LPRG will reduce commissions wherever and whenever possible. For instance, on the $1,000,000 transaction above, LPRG, as the listing brokerage, would agree to take 1% commission from the property owner as the “listing agent” but would still need the owner to pay a 2.5% commission to the agent/broker that brings the purchasers of the home to the transaction. Thus, the seller/owner would only pay 3.5% commission total, saving anywhere from $10,000 to $25,000 from the typical commission structure.
For buyers who use Land Park Realty Group to buy property, the 2.5% to 3% commission can also be reduced to assist the buyer with closing costs, or perhaps put the saved commission toward a down payment credit. This commission credit will need to be approved by the lenders and other parties to the transaction in most cases.
This reduced commission business model works because these days, most clients have already done the research and do not need an agent or broker to show them 12 different neighborhoods or view 30 homes. Certainly, if you are new to Sacramento, and need that assistance, it is no problem, but because of the time it takes to do this with another broker, you will likely not get a reduced commission. Moreover, the founding broker of LPRG has over 20 years of experience litigating construction defect cases, negotiating settlements and real estate transactions, and is passionate about helping people and evaluating real estate. Furthermore, this business model works because the benefits of extremely low overhead are passed on to our clients. Call LPRG today and see how we can help you!
Why Does It Work?
I think the business model for LPRG
is the way of the future.
-Joan Lejeal, Client
>>>Do you own property and are looking for a way to manage it? Ms. Brown has experience in property management as well as construction defect litigation. Ms. Brown can teach you how to maintain the property, tenants, leases, and financial records. She owns several properties that she manages and she can teach you how best to manage your own properties by being your consultant. For more information, contact Ms. Brown.