Step 1: List Your Home
Sellers list their homes (following the guidance of the app) into the ELS (Efizza Listing Service - a database of FSBO homes).
Step 2: Home Buyers Search
Interested buyers search, inquire, tour homes, and make offers. Buyers can even make an unofficial offer first to see if the seller would consider it. Real estate agents
representing buyers can also search and find Seller's incentive for realtors.
Step 3:
An official offer can be made using the real estate offer form on the site. Before submitting to the seller,
the buyer can share a PDF of the contract with their attorney or real estate agent if desired. When ready, the buyer can sign the form and submit it to the seller.
The seller can also share with their real estate attorney. If the seller signs, the house is considered "Under Contract."
How Efizza Saves the Seller Money
Scenario 1: The Traditional Transaction
-The most prevalent way houses are bought and sold today.
-A homeowner contacts a realtor to help sell the home.
-The realtor meets with the seller and may ask to be their realtor for 3-6 months.
-The realtor will list the house by entering it into the Multiple Listing Service (MLS).
- Usually there is an agreement that if the house sells, there will be a 6% commission fee for helping sell the house. Sometimes this fee
can be negotiated, but usually it's around 5-6%.
- Half of this fee is usually split with the buyer's realtor for bringing.
- Most sellers go
this route for many reasons: no free time, lack of understanding, fear of being ripped off,
not knowing how to market on their own, no better alternatives, etc.
-The bottom line: On a $400,000 property, seller pays $20,000 - $24,000 in realtor commission alone!
Scenario 2: The "Discount Broker"
These are the services that provide help
for reduced costs, usually with the seller's realtor surrendering a bit of their
commission in order to keep the overall costs down to the seller.
-Just the fact that some companies do this shows that there's no need to pay 6% commission.
-The seller will typically wind up paying 3% commission to the buyer's realtor (unless they don't
have one) plus the discount broker's fee.
-Some popular sites are asking for 1.5%
plus 3% to the buyer's realtor, for a total discount of 1.25% - 1.5% in most markets.
Scenario 3: The FSBO Sites
-Just search and you will find lots of these
companies around.
-For a relatively cheap fee, they will insert your home listing information
into MLS.
-Some sites will sell you a "kit" with a yard sign/flyers to help
you sell your home.
-You will have to do some marketing on your own to increase the selling
odds.
-Realtor's representing sellers may contact you to let you know know ready to help when you give up on FSBO.
-Once in the MLS, realtors with a buyer looking near your asking price may contact you.
-More than likely, you will have to pay a 2.5% - 3% commission
fee to the buyer's realtor.
Scenario 4: The Efizza Way
-We believe that realtors are getting way too much commission and the justifications of the past are no
longer
valid with all of
modern tools at our disposal.
-Marketing and advertising has changed and the internet is valuable tool to advertise and market at a
reasonable
cost.
-With our method, we DO NOT use the MLS. Why? Because it's not needed and it attracts realtors.
-All sellers can decide how they want to offer a realtor with a buyer, in advance.
-The options include no commission, 1-3%, or a flat amount such as $1000 that the seller is willing to pay a
realtor for bringing
them.
-We charge 1% to use the app, list in our database, and benefit from our marketing.
-Our website/app is designed to walk anyone through the
process of selling a home.
-You will still need a lawyer, just like the buyer will. But in
the end, you will save thousands of dollars to use elsewhere: towards a new home, an inground
pool, finishing your basement, retirement, college savings, vacation, etc.