TIMELINE Real Estate Services, Inc. is a full service real estate broker company that represents both buyers and sellers of real property in the Silicon Valley, East Bay and North Lake Tahoe areas. However, TIMELINE has completely redesigned the real estate business model. Instead of taking a commission, participating TIMELINE agents are paid specifically for the time and services provided to effectively list and market real property.
STOP Paying BIG Commissions!
For sellers, the TIMELINE business model means a savings of potentially tens of thousands of dollars. The industry standard is for you to pay a 6% commission for the sale of your home. If the listing agent also represents both you and the buyer, the agent typically keeps the entire 6%. At TIMELINE, we believe this is an unjustified windfall. If you and the buyer are represented by different agents, then the standard is a 6% commission split equally between the two agents. Paying a 3% commission to each agent is more reasonable, but still unwarranted in our view.
The Hourly Rate System
Instead of a commission, TIMELINE listing agents will utilize a simple formula based on the estimated average time an agent would spend on a typical transaction, from listing to closing, and the final purchase price of your home to establish an hourly rate. We then track all of our time worked to sell your home and cap the accrual of those fees at either 1.5% or 3.0% of the purchase price; depending on whether the listing agent represents just the seller or both the seller and buyer.
Please note that pursuant to rules of all local multiple listing services (?MLS?), a seller must offer any cooperating broker, also known as a buyer?s agent or selling agent, a commission as a condition for listing property on the MLS. The MLS is the top resource for marketing residential real property and finding buyers. Typically, the commission offered to a cooperating broker is one-half of the overall commission designated in the agreement between the seller and the listing agent.
How the caps Work
When we began discussing and researching this system, the major concern was how our clients could be guaranteed to actually save money because hourly fees can accrue indefinitely. We acknowledged such concerns and instituted caps on our fees so you are ensured the savings we promise. The caps and how they are applied are as follows:
1.5% Cap:
Assume that you have listed your home for sale with a TIMELINE agent and a buyer is represented by another TIMELINE agent or non-TIMELINE agent. In this situation, the fees of your listing agent will be limited to 1.5% of the final purchase price. Assuming further that you offered the industry standard of 3% to the non-listing/non-TIMELINE agent per MLS rules, the most you will pay in commissions is 4.5%, a potential savings greater than 25% of the industry standard commission.
Example Transaction:
Final Sale Price:$700,000
Standard 6% Commission:$42,000
TIMELINE Listing Agent 1.5% Limit:$10,500
Non-TIMELINE Buyer?s Agent 3.0% Limit:$21,000
Minimum Total Savings:$42,000 - $10,500 - $21,000 = $10,500!
3.0% Cap:
Your biggest savings occur when and if your TIMELINE agent also represents the buyer. In this situation, the fees are limited to 3.0%, an assured minimum savings of 50% from the industry standard commission.
Example Transaction:
Final Sale Price:$700,000
Standard 6% Commission:$42,000
TIMELINE Listing and Buyer?s Agent 3.0% Limit:$21,000
