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Why One Percent Realty

Blog by Cliff McCool | January 16th, 2007

Why One Percent Realty?

After a very successful career with RE/MAX, I have made the move to One Percent Realty Ltd. Why on earth would I leave a company that purportedly has a 1/3 market share in Canada?

Well, it may very well have a 1/3 market share, but that is built on the fees that realtors pay to RE/MAX. RE/MAX realtors get more listings because RE/MAX advertises more than any other real estate franchise. The first name that comes to most peoples minds when they think about real estate is RE/MAX. But does that mean that the RE/MAX listing  will sell faster or for more money than the lising of a different brokerage? Of course it doesn't. If your property is  well priced and advertised appropriately, it will sell no matter whose  name is on the sign.

That still doesn't answer the question of why I moved to One Percent Realty. The costs to sell a home today are not substantially different than they were 5 years ago. But the commissions have increased tremendously. They have increased during a time when many houses have been sold in hours with no advertising costs. I don't feel good about that. Why  should I make twice the money without doing twice the work? This money isn't found money - it is your hard earned cash.

I remember when I first got my real estate license. I, of course, got the obligatory congratulatory phone calls but I  also got the calls from friends saying "so you're one of the sleazy ones now" - Or words to that effect. It is undeniable that realtors and used car salesmen have a very bad reputation.

I take great pride in my word and my reputation. It is the only thing I am concerned about when I go to my grave. If I can do anything to help erase the negative thoughts people have towards my chosen profession, then I will do so. In Tofino, 13.4% of all houses are assessed at $1,000,000 or higher for 2007. So theoretically, 13% of all house transactions should be for a million dollars or more. With my previous employer, commissions had to be 7% on the first $100,000 and 3% on the balance. On a $1,000,000 house, that works out to $34,000. With One Percent Realty, the commission is $10,000 plus disbursements. That is a huge difference.

I have been involved in real estate projects from design to construction stage since 1973. During that time the surveyors, engineers, architects etc have always been nickled and dimed because their invoices come during the  negative cash flow stage of the project. Developers have complained but always paid the realtors high commissions because that commission came along with an offer to purchase and cash flow into the project. It is much easier to pay a big bill when the cash is coming into the project.

At the end of each real estate transaction that I am involved in, I want three things. I want the buyer to get the house of their dreams at a price they are happy with; I want the seller to be satisfied with the price they received for their home and the amount they paid towards real estate commissions; and I want to be happy with that commission.

You work hard to earn your money, I work hard so you can keep your money. 100% EFFORT FOR 1% COMMISSION.

If you have questions about real estate in Ucluelet, Tofino or Vancouver East, please give me a call. Let's go for coffee and you can pick my brain.

Thanks for reading.

Cliff McCool