If you have driven around Phoenixville or surrounding towns this year, you have likely seen the sign for KRG Residential. The signs have been popping up all over. KRG Residential is the Phoenixville-based brokerage that is challenging the traditional model of real estate, saving local residents tens of thousands of dollars while enhancing client experience.
Local clients are already seeing major savings. KRG Residential has helped clients save a combined $129,155 in commissions and credits between April and October and this number continues to grow. The firm attributes these savings to its transparent and efficient model that was “built for today’s market, not yesterday’s” and is comparing to a 3% per side model they used to work under as independent agents.
But how is it possible to reduce costs and provide top level service? Founder of KRG, Alec Kearns explains, “It’s actually simple if you are informed about how the industry works. Most consumers don’t know how much money is taken off the top of their real estate transaction for things like referral fees, franchise fees, hefty broker splits, and more. Sometimes only 20 cents of every dollar a client pays, actually goes to things that directly impact their transaction, such as their agent’s compensation. When you eliminate all of these extra costs that don’t serve the consumer – you’re able to do two things, pass savings along to the client and actually improve the level of service.”
According to Kearns, despite the lower fee, results are better than ever with most buyers only writing 1-2 offers before going under contract and the majority of his listings selling for over asking price in under 1 week on market.
“It’s about working smarter. Some people assume we are taking a pay-cut using this approach but that couldn’t be farther from the truth. We know it’s important to get your deal right the first time. Our strategies make it easier for you to get your dream home the first time you write an offer rather than be stuck in a cycle of losing home after home. We spend significantly less time calling our clients to let them know we were unsuccessful and unfortunately need to restart the entire process. This saves everyone time, money and most importantly heartbreak.”
A Transparent Model with Real Savings
According to Bankrate.com, the average total commission in Pennsylvania for each house sale is 5.35%, with about 2.75% typically going to the listing agent and 2.6% going to the buyer’s agent. In most cases, those fees are paid by the seller at closing, although due to recent regulatory changes, every buyer in PA is now obligated to ensure their buyer’s agent is paid the fee in their contract.
KRG Residential’s restructured payment approach is making a measurable difference for the Phoenixville community and beyond, charging transparent fees for both buying and selling significantly below the average.
Local sellers have signed listing agreements with KRG’s reduced 2% commission structure, saving an estimated $88,430 compared to what they would have paid under the 3% model.
Meanwhile, buyers received $40,725 in credits or savings through KRG’s 1.5% buyer agency structure for those buying and selling. Some used those credits to lower their closing costs and bring less cash to settlement, while others applied them strategically to strengthen offers in competitive bidding situations, gaining an edge over other buyers without spending more out of pocket. Sound a bit complicated? Learn more about these strategies here.
What’s Next?
Selling and purchasing a home is often the largest financial decision you will ever make and it is essential to have the right team supporting you every step of the way. KRG Residential is committed to consumer education so that you have everything you need to make the best choice for your family.
“We believe if potential clients are educated, working with us is a no-brainer. We are here to make sure you are informed and are able to take as much time as you need to learn all the nuances of the real estate process and what unique strategies will help you with your real estate goals.”
Be on the lookout for some fun educational events on the horizon. KRG Residential is planning future happy hours and other get-togethers to meet with local residents and share about their unique approach.
In just a short time, the model has already produced measurable results for local buyers and sellers and Kearns believes it’s only the beginning. Learn more about their unique approach at their website here.
“We’ve proven that real estate can be done better and cheaper,” he said. “Our goal is to keep raising the bar and keep putting more money back in our clients’ pockets.”
Disclaimer- KRG Residential is the sole sponsor and real estate partner of Phoenixville.com. Real estate commissions in PA are always negotiable and are not set by any governing body.