Longtime Realtor Donald Gorbach promises to save homeowners money when they sell their properties. But his model won’t make him popular with buyers’ agents, whom he wants to cut out of the deal.
Amid a growing trend toward discount real estate offerings, Gorbach this summer launched 3in3 Realty of West Palm Beach. He promises to sell your house for a 3 percent commission, but he’s banking on the buyer not having an agent.
“We don’t look at ourselves as a discounters,” Gorbach says. “We’re still getting our 3 percent. We’re just cutting out a broker.”
In most home sales, the seller and buyer are represented by agents who collect commissions.
A longtime traditional agent, Gorbach says buyers don’t really need their own agents any more. Buyers can find properties on Realtor.com and Zillow.
“The seller needs representation, but the buyer doesn’t any more,” he says.
Gorbach says he aims to price properties properly and market them aggressively so that they sell within three months. If a home remains on the market after three months, Gorbach says, 3in3 Realty switches the commission to 5 percent, with 2.5 percent going to the listing agent and 2.5 percent to the buyer’s agent.
Gorbach’s marketing includes billboards (one is pictured above) and this video:
Gorbach’s marketing focuses on the traditional 6 percent commission, but that benchmark has eroded in recent years. Realogy Corp., the nation’s largest brokerage, says commissions have been hovering in the 5 percent range for years. In another measure, REAL Trends, a consulting and research firm in Denver, says the average commission nationwide was 5.18 percent in 2015.