What would you say if your broker gave you a commission rebate for 2 percent of the purchase price when you buy an apartment?
You might wonder why any right-minded buyer’s broker would surrender that. But the founders of Yoreevo say it’s a matter of common sense — and math.
Due to rising real estate prices, the average New York City broker commission has increased 50 percent over the last decade. At the same time, online listings have made your broker’s job easier. Enter Yoreevo.
“We’re not built on the 3 percent model so we don’t need 3 percent,” says James McGrath, co-founder of Yoreevo. “Because of online listings sites, brokers can’t provide the value they once did, and we’ve adjusted the commissions accordingly.”
Yoreevo — an acronym for Your Real Estate Evolution — flips the model to put 2 percent of that traditional 3 percent commission in your pocket.
But how? The math works like this: the average New York City broker, according to McGrath, does 2.5 deals a year — meaning that they spend a lot of time looking for clients. The hardest part of their job is finding you, not actually executing your transaction.
Yoreevo uses state-of-the-art digital technology and marketing methods to generate leads, so their agents spend a majority of their time working with clients, not finding them.
As a result, Yoreevo’s agents are busy scheduling viewings, negotiating, analyzing and closing, the same as any other agent. Schmoozing isn’t part of the job description. Yoreevo also provides the same service on the sell side.
Currently, the commission/buyer rebate model accounts for only about 1 percent of all New York real estate transactions. “But as more people hear about getting a 2 percent commission rebate in their back pocket, that’s increasing quickly,” says McGrath.
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