Discounted realtor commissions for discount service
Keith Burkhardt, the president of the Burkhardt Group, charged the Pohls a flat rate of $1,000 to submit their listing to real estate databases. The couple handled all the open houses, showings and deal negotiation themselves. He offers buyers a rebate of up to two-thirds of his commission, based on a similar self-service model. Clients search for apartments and visit open houses on their own, putting Mr. Burkhardt's name down as their broker, and he helps out by booking other appointments and offering advice during negotiations.
These days, Mr. Burkhardt considers himself mostly a buyer's broker, describing his niche as that subset of real estate enthusiasts who are glued to sites like StreetEasy and don't need a lot of hand-holding while visiting Sunday open houses, a task that can take up a lot of a broker's time.
"They're doing, let's say 60 percent of the research themselves," he said, "and they want to be compensated for that."
He acknowledged, however, that setups like his had yet to catch on in a big way.
"People like to complain about broker commissions," he said, "but they're afraid to break ranks with the status quo and go with a firm or a model that is different than what everybody accepts."
Another company offering a hybrid service is RealDirect, which charges sellers $395 per month, or a 1 percent commission, to distribute a listing to major real estate databases; owners handle open houses and showings themselves. Sellers can pay a 2 percent commission for what RealDirect calls "broker-managed service," including pricing and staging advice, and the handling of negotiations.
Doug Perlson, the chief executive of RealDirect, said 3 of the 13 apartments listed through the company, which started last summer, had sold or were in contract.
One of those properties is a one-bedroom Greenwich Village apartment owned by Colleen Gray, which is scheduled to close in mid-February. The listing price was $920,000.
Ms. Gray said she listed her apartment with RealDirect in late October after having tried to sell it herself for about a month. She went with RealDirect because she did not feel her previous real estate agents had earned their commissions.
REAL ESTATE
You Don't Have to Pay It
By SUSAN STELLIN
Published: January 28, 2011
Agencies offering to do less for less are springing up, and in a do-it-yourself age, some sellers are drawn to the no-frills approach