Sale & Purchase Package Program
We are pleased to offer our Sale & Purchase Package Program for our clients that are simultaneously selling their primary residence and purchasing another home. This program offers a greatly reduced commission on the sale of your home when you are also purchasing another home at the same time (you have to live somewhere, right?).
Here's how it works (in a nutshell):
When we represent you for both the sale of your current home and for your new home purchase, we will deduct the amount of commission that we receive on your new purchase from the listing agent commission that you are charged on your sale. What this basically amounts to is that we are forfeiting the lesser of the commissions between your sale and purchase and passing that savings on to you.
(Note: The listing agent portion of the commission can not be reduced to less than $0. Also, this program is only available for primary residences and not for investment properties.)
So, what does this actually look like? Follow the 3 easy steps below for a quick way to estimate your savings on the commission.
Step 1:
Take how much you think your home will sell for and multiply by 2.75%. This is Calculation A.
Step 2:
Take the estimated purchase price of the home you will be buying and multiply by 2.75%. This is Calculation B.
Step 3:
The lesser of these 2 calculations is the amount you will save on commissions!! (As compared with other companies charging the same 5.5% commission to list your home.)
For those of you who want a more detailed calculation, here's the nerdy math (based on arbitrary values for the homes) for how we calculate commissions with this program:
(Keep in mind that there are 2 transactions happening - a Sale and a Purchase; and each transaction has a buyer's agent side and a seller's agent side. We act as a seller's agent on your sale and as a buyer's agent on your purchase.)
Example 1: (For ease of reference, the figures affecting your discount are highlighted in red.)
New Millennium Realty is representing the client on both their home sale and new home purchase for simultaneous (same day) closings.
The client's current home sells for $300,000. The client is charged a 5.5% ($16,500) total commission by New Millennium Realty to list their home for sale. Of that 5.5%, 2.75% ($8,250) will be paid to the buyer's agent (buyer's agent commission) and 2.75% ($8,250) will be retained by New Millennium Realty (listing agent commission).
The client's new home purchase is $350,000. New Millennium Realty receives a buyer's agent commission of 2.75% ($9,625) as the buyer's agent on this transaction.
We subtract the buyer's agent commission we earned on the purchase from the listing agent commission we charge to list your home. The listing agent portion of the commission on your sale is reduced to $0 ($8,250 - $9,625 = -$1,375). Please note that the listing agent portion of the commission cannot be a negative number, so it is reduced to $0.
The total commission that the client pays to sell their home is now $8,250 (which is paid to the buyer's agent) instead of the $16,500 that would have been charged by other real estate brokerages. The client saved $8,250* by listing with New Millennium Realty!
Example 2: (For ease of reference, the figures affecting your discount are highlighted in red.)
New Millennium Realty is representing the client on both their home sale and new home purchase for simultaneous (same day) closings.
The client's current home sells for $300,000. The client is charged a 5.5% ($16,500) total commission by New Millennium Realty to list their home for sale. Of that 5.5%, 2.75% ($8,250) will be paid to the buyer's agent (buyer's agent commission) and 2.75% ($8,250) will be retained by New Millennium Realty (listing agent commission). Just like the previous example.
But in this example, the client is downsizing and their new home purchase is $250,000. New Millennium Realty receives a buyer's agent commission of 2.75% ($6,875) as the buyer's agent on this transaction.
We subtract the buyer's agent commission we earned on the purchase from the listing agent commission we charge to list your home. The listing agent portion of the commission is then reduced to $1,375 ($8,250 - $6,875 = $1,375).
The total commission that the client pays to sell their home is now $9,625 instead of the $16,500 that would have been charged by other real estate brokerages. The client saved $6,875* by listing with New Millennium Realty!
* As compared with other companies charging the same 5.5% commission to list the home.
We know that these scenerios can be somewhat difficult to understand and we are happy to discuss your particular scenerio in detail using figures that are more representative of your home value and your likely purchase price. We strive for complete transparency and want to you feel absolutely confident about the savings you will receive with New Millennium Realty.