The True Cost of a Discount Broker In Boston

Is A 4% Listing Commission Really A Bargain? The True Cost of a Discount Broker Utilizing all recorded sales on MLSPIN between 01/01/13 - 08/31/13 in Boston, Brookline, Cambridge & Somerville. Sales exclude bank owned, short sales, and entry only listings* Single Family & Condos Original List Price Between $200,000 - $399,999 1,949 402 Listings 1,547 <5% 5% Listings Qualifying Listings (63 Listings Offered Over 5%) LISTING COMMISSION 20.63% UNDER 5% AVERAGE ORIGINAL LIST PRICE $323,633 $322,005 79.37% AVGERAGE SALE PRICE $319,473 $323,262 COMMISSION PAID $12,779 $16,163 NET TO SELLER $306,694 $307,099 33.32 Avg Days On Market 43.36 Avg Days On Market On average, listings with an original list price between $200,000 - $399,999 and a listing commission of 5% sold 10 days faster and put $405 more in their seller's pockets at closing than those which offered a reduced listing commission. Single Family & Condos Original List Price Between $400,000 - $599,999 1,918 244 Listings 5% 1,458 Listings <5% Qualifying Listings (20 Listings Offered Over 5%) LISTING COMMISSION 18.25% UNDER 5% 5% AVERAGE ORIGINAL LIST PRICE $495,974 $496,460 81.75% AVGERAGE SALE PRICE $488,364 $499,275 COMMISSION PAID $19,535 $24,964 NET TO $468,829 $474,311 SELLER 33.05 Avg Days On Market 41.11 Avg Days On Market On average, listings with an original list price between $400,000 - $599,999 and a listing commission of 5% sold 8 days faster and put $5,475 more in their seller's pockets at closing than those which offered a reduced listing commission. Single Family & Condos Original List Price Between $600,000 - $899,999 941 132 Listings 809 <5% 5% Listings Qualifying Listings (14 Listings Offered Over 5%) LISTING COMMISSION 14.03% UNDER 5% 5% AVERAGE ORIGINAL LIST PRICE $730,721 $737,056 AVGERAGE SALE PRICE $720,666 $739,435 85.97% COMMISSION PAID $28,827 $36,972 NET TO SELLER $691,839 $702,463 39.72 Avg Days On Market 42.27 Avg Days On Market On average, listings with an original list price between $600,000 - $899,999 and a listing commission of 5% sold 2.5 days faster and put $10,624 more in their seller's pockets at closing than those which offered a reduced listing commission. Question & Answer O Why did you use original listing price and not the listing price when it actually sold? We used the original listing price because that is the bill of goods you are sold by a real estate agent upon signing your listing agreement. Any agent can sell a home for 100% of list price after numerous price drops. O How are you figuring out the commission paid? All sale price calculations are based on net sales price. Commission was figured in after arriving at the average net sales price. For commissions under 5% we used a 4% total commission as it was the most prevalent discount commission, accounting for approximately 85% of all listings which were under 5%. Credit Justin Rollo RE/MAX Realty Plus 738 East Broadway Boston, MA 02127 m: (978)790-4381 e: [email protected] www.propertiesinthehub.com FOR A FREE LISTING CONSULTATION GO TO wwW.PROPERTIESINTHEHUB.COM/SELLING/ OR CONTACT ME @ (978)790-4381 *All data was taken from MLSPIN. Measures have been taken to confirm the accuracy of all calculations used, however, please use this guide for informational purposes. Short sales, REO's, and Entry Only Listings were removed via the information provided in their listings. No guarantees are made to the accuracy of those listings.