Flat-fee Versus Commission-based Real Estate Business Models

On April 25, 2013, Help-U-Sell Bay Beach Realty broker/owner Dan Desmond and Scott Einbinder, a veteran real estate salesperson and consultant, in Toms River, N.J., will debate which real estate business model is superior: flat-fee or commission-based. Proceeds from the highly anticipated event will benefit the local Habitat for Humanity chapter.

Dan Desmond, Help-U-Sell Bay Beach Realty
Dan Desmond of Help-U-Sell Bay Beach Realty will debate the merits of the flat-fee business model on April 25, 2013.

While Desmond will be speaking on his own behalf and not as a representative of Help-U-Sell Real Estate’s corporate office, we are looking forward to cheering him on in about two weeks’ time.

Since we began operating in 1976, Help-U-Sell Real Estate has practiced the flat-fee (or set-fee) business model. Our founder, Don Taylor, thought the idea that consumers paid high commissions, based on the sale price of a home and not on the actual cost of marketing the home, could be improved upon.

Our brokers, all members of the National Association of REALTORS, offer the same full service as commission-based brokers, but charge a flat fee instead of a variable percentage. The flat fee is always at a savings for our sellers. However, we are not discount brokers. Our brokers determine their flat fee based on solid business practices (the market conditions, their profit margin and the cost to perform services) and not based on what the broker next door is charging.

Last year, our offices saved sellers $12.5 million in commission fees, when compared to a 6% commission. To us, a flat fee just makes sense for everyone: our sellers, our brokers and our brokers’ agents.

If you would like more information about how Help-U-Sell Real Estate’s set-fee business model works, visit our Franchise Opportunity Center website or contact us.

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The Broker-Centric Business Model

In the past few weeks, two opinion articles touting the merits of the smaller, broker-centric business model have appeared on renowned real estate news websites, AGBeat and Inman News. We couldn’t agree with these sentiments more. Help-U-Sell Real Estate’s business model has been broker-centric since the company’s founding in 1976. We believe that it’s the best real estate model because:

    1) it’s more efficient.
    2) it creates agents who have had more transactions and, therefore, more experience which enables them to better serve buyers and sellers.
    3) it’s more cost-effective.
    4) it creates a more manageable workload for agents.
    5) brand consistency is better controlled when one person (the broker) is in charge of all advertising and marketing.

The entire staff of one of our most successful offices, Help-U-Sell Direct Savings Real Estate
The entire staff of one of our most successful offices, Help-U-Sell Direct Savings Real Estate in Waynesboro, Va.

Most importantly for us, however, a broker-centric model enables our offices to offer consumers choices, ultimately saving the consumer money compared to the old-fashioned agent model. That model, while slowly fading away, seems to exist only to support the inefficiencies of that old business model.

If you would like to learn more about our business model, we invite you to visit our Franchise Opportunity Center website.

We also encourage you to read the two articles, if you haven’t already, and leave your comments as to how the broker-centric business model works for you.

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Help-U-Sell® Real Estate Announces New Franchise units in California

Sarasota, FL. – Help-U-Sell® Real Estate, the industry’s leading provider of set-fee real estate services, is proud to announce new franchises in Upland, Corona, and Redlands, California. Unlike traditional real estate companies that are struggling in today’s slower market, Help-U-Sell®’s unique business model is designed to allow their local broker/owners to thrive, regardless of the market conditions, while still providing a significant savings to consumers.

“While many of our competitors are downsizing or in a retreat mode because of the current market conditions, we’re launching an aggressive growth campaign,” said Ron McCoy, Franchise Opportunities Director, Help-U-Sell® Real Estate. “While our primary effort will still be the service and support of our local broker family, we can’t deny the response in franchise interest these past many months. This, along with the encouragement and support from our local brokers, has allowed us to again begin the pursuit of adding new members to the Help-U-Sell® Family.”
Tammy Whitehead, owner of the new Corona, CA office said, “Help-U-Sell® gives me a competitive advantage unlike anything else. The website and technology platform drives leads to my door and my set-fee offering is the best deal out there. It’s a win-win for both my clients and my business.”

Created 30 years ago, the Help-U-Sell® model was the pioneer for providing an alternative to the dated percentage based commission structure common in the residential real estate business, something that had gone uncontested for years in a market overrun by a monopoly of traditional brokerage firms. Help-U-Sell® forged a revolution in the real estate industry by proactively challenging the commission structure, and has continued to perfect its full service set-fee model to this day.

Help-U-Sell® Real Estate’s success has been founded on the ideal of providing its franchise offices the products and services needed for them to be as efficient and effective as possible, and seize a growing opportunity in their marketplace, while at the same time providing consumers with an alternative to the traditional commission structure.

In an industry that can be plagued by the false promise of the entrepreneurial myth and guessing what it takes to succeed, Help-U-Sell® has formed a unique, comprehensive and integrated set of business systems for its Network of offices. These business systems have been built by leveraging leading edge products, services, ideas and techniques. By creating this comprehensive system, Help-U-Sell® is taking the “entrepreneurial guess work” out of succeeding. And the result is one of the most dynamic, consumer-centric real estate systems in the world.

For more information on franchise opportunities with Help-U-Sell ® Real Estate, please visit www.helpusellfranchise.com or call (888) 619-7776.

Help-U-Sell® Real Estate is the world’s first set-fee real estate company, with offices in 36 states, and operations in South Africa, and the Philippines. The company has revolutionized the real estate industry by focusing on information and transparency to consumers. Help-U-Sell® differs from traditional brokers, not in the level of services provided by its licensed brokers throughout the country, but in the dollar amount that the consumer pays for those services.

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