Wise Custom Realty is actively seeking Realtors in this area by offering a new business model that, Wise said, will result in more money in Realtors’ pockets.
The end result for the consumer is no different than from traditional real estate transactions.
In conventional real estate, the sales Realtor will split a commission with the buyer Realtor; it’s typically a 6 percent commission, split 50-50.
From that 3 percent, a Realtor in a conventional office will surrender 20-30 percent to his office to pay for the cost of doing business – overhead, marketing, website development and more, Wise said in an interview with the Business Journal.
Nationally, Wise Custom Realty has a partnership with Regus to provide space. On its website, Regus said it is the world’s largest provider of flexible work places. In Colorado Springs, that space is off Briargate at 1755 Telstar Dr., Suite 300, and will be managed by Broker Carol Games.
The business model differs from conventional real estate in that instead of charging 20-30 percent of the Realtor’s 3 percent commission, Wise charges $199 a month as well as a transaction fee up to $500 per sale.
“Our business model is more geared toward taking care of our people – our agents,” Wise said.
“The great thing about out company is they don’t have to sacrifice the marketing tools. We have a very high focus on self-branding,” Wise said. “We teach them how to market themselves.”
According to a PRWeb.com news release in November, Wise has been holding interviews for agents and managing brokers for future openings in Denver, St. Louis, Philadelphia and Memphis, Tenn.
Based in Bentonville, Ark., Wise Custom Realty expanded into the Kansas City. Mo., market in August. Within five years, Wise Custom plans to be in 550 of Regus’ more than 600 U.S. locations, Wise said in an interview with Rob Roberts of the Kansas City Business Journal.
For the monthly charge and the transaction fees, Wise Custom Realty helps with the Website development, the multi-listing service, transaction coordination, social media development, and “We assume the costs of their errors and omissions insurance,” Wise said.
Agents that sell up to four properties a year “won’t be enticed,” he said. But those who sell higher volumes will be, he said.
“We just took a hard look at what was wrong with the industry. We looked at people sick of getting nickled and dimed to death with franchise fees, transaction fees, etc.,” he said.
“We’re not a franchise. Two fees – that’s it, the admin fee and a transaction fee, which ranges from $100 to $500.
“Nobody will ever pay us more than $500 on one transaction.
“A $1.5 million home, the most they’ll pay is $500,” Wise said.
Self-branding programs developed by WCR give their agents the ability to be in the forefront as the principal in their own real estate business, he said.