Seattle-based Surefield announced it is drastically slashing buy-side commissions in an effort to bring the U.S. residential real estate market up to date with its peers around the globe.
Sellers no longer have to pay a 3% buyer’s agent commission to get buyers into their home thanks to the company’s latest product that uses 3D home-tour technology to get them into the home online.
Surefield developed its proprietary, virtual 3D home-tour system using computer-vision technology, giving buyers a realistic, remote tour of a home.
As a result, it enables a new level of commission savings with no trade-offs since buyers can view homes remotely 24/7.
In comparison, the company noted that other full-service brokers could cost between 4.5% and 6%. This means on a $500,000 home, sellers save up to $22,500 in commission.
Meanwhile, commission rates for countries with similar gross domestic product per capita are between 1% and 2.5%. The seller usually only pays for his agent, who also gives home tours to potential buyers. In the United States, the customary total commission rate is 6% and the seller pays for his and the buyer’s agent.
“The U.S. real estate industry has been operating as a quasi-cartel for far too many years, just look at the high commission rates as proof of tacit collusion. Surefield’s goal is to deliver the same level of transactional efficiency to U.S. consumers that is found in other developed countries,” said David Eraker, Surefield CEO.
“Residential real estate is sold successfully all around the world without automatically prepaying for the services of a buyer's agent. We are bringing that practice to United States to give sellers more freedom in marketing and accurately pricing their homes, and giving buyers access to homes around the clock,” Eraker added.