Where Has All the Money Gone?

June 26, 2017


For anyone who’s ever grumbled about government spending, gas tax or the price of eggs, here’s something to ponder: billions of dollars are spent each year on high real estate commissions. A boat load of cash that could be put to better use. As of today, in the Bay Area alone, this figure has hit a billion dollars in 2017. That’s right, billion with a “B”…nine zeros. The reason for this? Exorbitant commissions paid to real estate agents on both sides of the deal, often for varying levels of effort.

Don’t get us wrong, we’re not bashing realtors…we’re part of that community ourselves. What we are bringing to light is the disproportionate benefits going to agents, instead of to the consumers who put their investments on the line when buying or selling their homes. Quite frankly, this is way out of whack. We believe that a better experience can exist for consumers, and that the lion’s share of the rewards should go to them to use as they please.

Here’s a quick what if scenario: On $1,000,000 home, typically a commission of up to 6% is split between the Buyer and Seller agents at close of escrow. That’s $60,000…quite a chunk of change! Reali is turning the tables on this in two ways: First, Sellers listing with Reali pay only 4% total commission. Second, Buyers get a full refund of the Buyer’s agent commission, typically 2.5% . This reduces the overall commission to 1.5% The only payment made by the Buyers to Reali is our $4,950 administrative fee. Each of these scenarios put tens of thousands of dollars back into the hands of Buyers and Sellers. On that same $1,000,000 home, that’s more than $40,000 in combined savings.

That’s serious cash to put toward better things. On the micro level, it could pay for a college education, a dream vacation, year’s worth of groceries or thousands of meals for needy families. On the macro level it gets even more impressive.

So consider this: when you’re ready to buy or sell a home, where do you want your money to go? To fat commissions, or back into your wallet and the economy? If you’re thinking the latter, go to, call 1–844-Hi-Reali or get the app. We’re here to help you experience a smooth and rewarding real estate transaction, and keep the cash you’ve worked so hard to earn. Reali.