SELLERS
Maximize Your Profits with Future Wise
Prior vs. new regulations
Until August 2024, the seller payed a commissions to the selling broker, who then splits the commission with the cooperating broker based on the advertised split in the Multiple Listings Service (MLS). Typically, these commissions ranged from 5% to 7% of the selling price, with 6% being the most common. With the new regulations in effect, sellers are only responsible for the selling broker’s commission, while buyers are responsible for the cooperating broker’s commission. This change has led to buyers negotiating with sellers for credit to cover their commission obligations. While sellers are not required to agree to these credits, doing so can significantly increase the number of showings and expedite the sale of their property.
Why you should choose Future Wise
The Future Wise Team offers sellers unparalleled flexibility with a substantially lower commission rate of just 0.5% of the selling price, compared to the industry standard of 2% to 3%. This puts sellers in a stronger position to offer a credit towards the buyers agent’s commission, increasing the volume of showings and still realizing the profit needed from the sale of the home.
Savings with Future Wise
Let’s assume for this exercise that the comparable sales in the neighborhood range between $490,000 and $520,000. And the seller needs to realize $500,000 from the sale of his/her home. Furthermore, the buyer is asking for a credit of 2% of the sales price towards his/her commission obligations.
Scenario 1:
Traditional 3% Selling Broker’s Commission:
- Seller’s requirement: $500,000
- Selling broker’s commission: $15,000 (3%)
- Cooperating broker’s commission: $10,000 (2%)
- The minimum selling price will need to be: $525,000
With this scenario, the seller must sell their home at $525,000, this price is above market value, greatly reducing the number of showing and prolonging the time the home stays on the market, diminishing the seller’s chances of achieving the desired profit.
Scenario 2:
Highly discounted 2% Selling Broker’s Commission:
- Seller’s requirement: $500,000
- Selling broker’s commission: $10,000 (2%)
- Cooperating broker’s commission: $10,000 (2%)
- The minimum selling price will need to be: $520,000
Here, the seller needs to sell their home at $520,000, matching the highest comparable property. This will still reduce the number of showings and prolong the time that the home is on the market, negatively impacting the seller’s profit potential.
Scenario 3:
The FUTURE WISE 0.5% commission rate:
- Seller’s requirement: $500,000
- FUTURE WISE commission: $2,500 (0.5%)
- Cooperating broker’s commission: $10,000 (2%)
- The minimum selling price will need to be: $512,500
By choosing The Future Wise Team, the seller can sell their home at a competitive price of $512,500. This attracts more showings, increases the chances of a quick sale, and maximizes the seller’s profit.
Preparing for showings
Before your home listing goes live on the MLS system, preparation is key. To ensure your home looks its best in photos, you’ll need to hire a professional photographer. The Future Wise Team will provide you with detailed instructions on how to prepare your home for the photography session and showings, along with a list of top photographers to choose from. Although you can take the photos yourself, we highly recommend professional photography to meet the strict MLS guidelines and maximize showings and offers.
Launching on MLS
When your home listing goes live on the MLS system, be prepared for a flurry of activity. Buyers and their agents will likely reach out to schedule viewings. Whether they contact us or you directly, you can choose convenient dates and times for showings. The Future Wise Team will guide you through every step, ensuring you know what to do and what to expect during showings. Rest assured, our team is always available to assist with any questions from potential buyers or agents.
Home inspection
As part of the contract, the buyer has the right to perform a home inspection within the specified timeframe. The seller must allow this inspection to take place during this period and should be present to grant the inspector access.
Key points to understand:
- Home inspector’s Role: The inspector works for the buyer and will report any findings directly to them.
- Review and response: Once the buyer reviews the inspection report and informs us of any issues, the seller has three options:
- Make Repairs: Address the deficiencies before closing.
- Negotiate Credit: Offer credit to the buyer to cover the repairs.
- Decline Both Options: This could jeopardize the deal and probably result in the deal falling apart which in some cases may be the desired result.
The Future wise team will work with you (the Seller) determine which is the best course of action moving forward, and help you negotiate with the buyer if your choice is to offer a credit for the repairs.
Final walkthrough and closing
Prior to closing the buyer has the right to do a final walkthrough to ensure the property is in the expected condition and any agreed-upon repairs are completed. The seller needs to be present to grant you access and secure the property once the walkthrough has finished.
The closing involves signing documents, after which the title company or closing attorney will transfer funds and hand over the keys to the buyer. We guarantee that our Future Wise Team will be fully prepared for the closing and be available to resolve any issues that might arise during the closing process.
With The Future Wise Team, makes it possible for sellers to meet Their financial goals and achieve a faster, more successful sale.
Make the smart choice with The Future Wise Team.