Few businesses offer a benefit doing things according to the status quo. The business of real estate is no exception — brokerages that cling to the status quo wind up costing their clients money that they could have otherwise saved.
Local entrepreneur Dan Perrine saw this firsthand when he set out to buy a piece of land not many years ago. He found the professional conduct of the agents he dealt with very much lacking. His energized personality wouldn’t let him suffer waiting ages to have his phone calls returned. An entrepreneur always knows that he can do better, so Dan interpreted this lackluster experience as a sign that Fargo’s real estate market needed his touch. He became a realtor and started doing deals.
Dan’s distaste for the status quo heightened further when he better understood just how realtors make their money. When one of his earliest deals closed, he was shocked to see that he had just earned $12,000 for what amounted to about five hours of work. Let us not fool ourselves — to most people, that would be the most welcome sort of shock imaginable. It’s a testament to Dan’s character that he perceived such a whopping paycheck as evidence that the real estate business was broken. He reckoned just how he could fix it, too.
“What home sellers and buyers have to appreciate these days is that the internet has changed everything,” said Dan. “A brokerage’s brand, its logo, and its marketing don’t amount to a hill of beans when all you have to do is go on websites like Zillow, Trulia, or Realtor.com to find a home. The simple fact is that buyers and sellers just don’t need agents like they used to anymore. So why should they pay them just as much as they did in the old days?
“At James Patrick Real Estate, we’ve implemented a flat fee structure which I believe is going to revolutionize the industry. When you list a house with us, you pay the same flat fee whether it sells for $150,000 or $750,000. It takes my agents the same amount of work to sell it regardless of the purchase price. Compare this to a commission based on a percentage of the purchase price — our clients are keeping a lot more of their hard earned equity. Depending on the sale price of their home, this can equate to thousands of dollars.
“Our business model works in favor of buyers as well. When our clients purchase a new home, we share a portion of our commission with them. Here’s an example of how it works: A client buys a $250,000 house and the seller pays us three percent of the purchase price, or $7,500. James Patrick Real Estate would keep the first $3,000 and split the rest with our client. This results in a $2,250 credit for our client to use to pay closing costs or just pay less on the purchase price. This is simply less money out of pocket to get into a new home.
“Conducting real estate in this manner may not seem the most lucrative, but it was never about that from the beginning. I always wanted my agents and I to earn what I feel is fair in this day and age. It is working — in 2018 we’ve tripled our sales volume, and that’s simply by word of mouth.”
James Patrick Real Estate owes their success to the stir they’re creating and to their clients who are spreading the word. To learn more about how this Fargo brokerage is transforming their entire industry, just visit jamespatrickrealestate.com.
By David Scheller