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- Billy Lam, "FlatFeeListingSvcs"
- Contributions:78
I agree with mckylie. Depending on who you sign up with for the flat fee listing service and what package, you may have to make time to open your house for showings and answer questions from agents and buyers. There are flat fee brokers that offers packages that includes an electronic lockbox for agents to access the key(s) to your home for showing when you're not available. Some flat fee brokers has a package include negotiating and prepare purchase contract. If you are planning to use a flat fee listing broker, I recommend you find one that is local. There are a few national online company that offers flat fee listing services but they hire a broker or brokers in each state to list the home. The listing broker get a part of the fee you paid to the online company. So, I recommend you go direct to the source instead paying a middleman. You may not get much support since the broker receive a small fee for listing your home.
- mckylie
- Contributions:5034
Pasa - I understand what you are saying. But I also understand why people are saying you get what you pay for on some level. Don't get me wrong - I am all for the flat fee service IF you have the time, willingness and some knowledge. But you are paying a lot less and get a lot less service. Doesn't mean the chances that you will sell your house on with a flat fee service can be any less than if you use a full service Realtor based under the right circumstance.
You definitely have to know how to price your house correctly for selling. And you definitely have to have the time and willingness to be there to open your house up for showings and field Agent calls with questions. Not everyone has that time or desire to handle that.
You definitely have to know how to price your house correctly for selling. And you definitely have to have the time and willingness to be there to open your house up for showings and field Agent calls with questions. Not everyone has that time or desire to handle that.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Why would you want to do that unless you are upside down on your home. Do you know anything about the real estate market? I think going with a full agent will help get your home sold with less stress to you.
- Billy Lam, "FlatFeeListingSvcs"
- Contributions:78
Most of the flat fee listing charges I've seen are between $295 and $395. Usually, this is a basic listing meaning the broker/agent will list your property on the local Multiple Listing Service (MLS) with photos, property description, and showing instructions. Also, they don't negotiate and prepare the contract for you. You will need to show your property to the buyers and hold your own open house. Flat fee listing services are for sellers who are willing to put in some of the work. I have sellers who are willing to show their home to the buyers on their own and hold their open house.
Did you know that even the licensed real estate agents uses Flat Fee Listing services to sell their own home or investment properties? Why? First, they know the importance of advertising their home on the MLS for maximum exposure. Second, most of the brokers they're with (unless they are the broker/owner) usually charges them at least 1% on the seller's side to sell their own property. An old colleague of mine from a known national company told me that they will collect 1% (seller's side) if his gross annual sale from the previous year exceeded certain amount. Otherwise, it will be a minimum of 2% on the seller's side.
Anyway, I offer my sellers 3 different Flat Fee Listing packages starting $295 depending what their needs are and what they are willing to do on their own.
Did you know that even the licensed real estate agents uses Flat Fee Listing services to sell their own home or investment properties? Why? First, they know the importance of advertising their home on the MLS for maximum exposure. Second, most of the brokers they're with (unless they are the broker/owner) usually charges them at least 1% on the seller's side to sell their own property. An old colleague of mine from a known national company told me that they will collect 1% (seller's side) if his gross annual sale from the previous year exceeded certain amount. Otherwise, it will be a minimum of 2% on the seller's side.
Anyway, I offer my sellers 3 different Flat Fee Listing packages starting $295 depending what their needs are and what they are willing to do on their own.
- Anthony Frisone, "ajfrisone"
- Contributions:355
Sure a flat fee of 6%
- Pasadenan
- Contributions:21466
"but like everything else in life, you get what you pay for." -
You have to be kidding! Where have you every found that you get what you pay for in anything? That means that if you pay 100 times what something is worth, you will get 100 times the value?
That means you never shop prices on anything, not even gasoline? Not even a pair of jeans?
You must be 100% crazy. And even if not, I would not want you representing me.
You have to be kidding! Where have you every found that you get what you pay for in anything? That means that if you pay 100 times what something is worth, you will get 100 times the value?
That means you never shop prices on anything, not even gasoline? Not even a pair of jeans?
You must be 100% crazy. And even if not, I would not want you representing me.
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
Some will charge a few hundread dollars, but like everything else in life, you get what you pay for.
- mckylie
- Contributions:5034
I hate to see Agent's complaining about the "extra work" they think they have to do with Flat Fee Sellers. Sorry, but isn't that the nature of the Beast when you are a Real Estate Agent? You are going to have some clients that you do very little for and some clients that you have to do A LOT for. It all evens out, doesn't it? For instance when we bought our first house we are actually the ones who found it. Then we called an Agent that was recommended to us and met him at the house and made an offer that night! Don't think he was complaining that he didn't have to spend hours researching house and taking us to tons of houses. On the other hand, the people who bought that house from us had been looking at houses with their Agent for over a year and were very picky. And look at Selling Agents - some list homes that have been on the market for very long times and some list homes that sell right away. Do you ever hear an Agent say "I don't think I earned my whole commission because the home was only on the market for a week and I didn't have to do as much work on it as the other homes I am trying to sell?????
If you are worried about putting in extra work on some sales perhaps you should find another profession?????
If you are worried about putting in extra work on some sales perhaps you should find another profession?????
Every section of the financial world is changing and real estate is no different. My goal has always been to let my clients decide what is best for their situation. I have made $15,000 in an hour and I have been happy with an hour generating $250. I do not take into account what others in my field are doing in regard to commissions or fees, my brokerage is based on a model of income and profits.
A flat fee MLS listing is a great deal for someone who can handle their end but want the benefits of the MLS. Some of the clients I have had use this option have been families with attorneys or other professionals in financial industries.
You will of course have to pay a commission to the buyers agent (if there is one). This is also a great option for vacant land.
In the end this option's value can also depend on the location and marketplace there are no "boiler plate" answers anymore to any questions.
A flat fee MLS listing is a great deal for someone who can handle their end but want the benefits of the MLS. Some of the clients I have had use this option have been families with attorneys or other professionals in financial industries.
You will of course have to pay a commission to the buyers agent (if there is one). This is also a great option for vacant land.
In the end this option's value can also depend on the location and marketplace there are no "boiler plate" answers anymore to any questions.
- Pasadenan
- Contributions:21466
You are right... Most Realtors® posting on this board are too emotional to be able to represent me.
- Todd Akes, "Todd Akes"
- Contributions:60
You want to unmotivate your Real Estate agent? Offer to pay them little to market, show, negotiate, and close your deal. Most of the veterans here have seen the assist to sell and flat rate companies nearly disappear. I know many markets are different but modern Real Estate deals are just to complex for most individuals to get them done. Especially here in the Las Vegas market. Get a buyer and seller together and see how that works out 9 out of 10 times. Emotions simply run to high. Hire a good agent and make sure they get paid a reasonable amount. You'll be happier in the long run.
- Dunes....
- Contributions:3894
Probably because this applies in some States.....
From the Dept. of Justice
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."
What are the laws in your state?
From the Dept. of Justice
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."
What are the laws in your state?
- Jackie Beardsley, "Listingforless"
- Contributions:163
It isn't ethical to put a home on the MLS for a 'flat fee' unelss the 'minimum services required by the law (depending on state) are being serviced to the seller.
Hope this helps!
Hope this helps!
- Dunes....
- Contributions:3894
Thank-you very much Robert, after reading your posts on the Question you asked/posted I truly appreciate your comment...
I've refrained from commenting there recently in the hope an actual discussion of what you asked might actually be happening with your participation..
This Forum..Consumers..the Public need to hear more from people like you IMHO....So let me say to you..
Thank-You Very Much for taking the time to explain and discuss your views so honestly..You have my respect and Best Wishes
I would be more than willing to discuss this topic or any other with you at any time in this Forum...
Zillow & it's staff have been very pro-active in trying to create a Level-Playing field for discussion in it's Forum...felt the need to say that because I feel they deserve it..
I've refrained from commenting there recently in the hope an actual discussion of what you asked might actually be happening with your participation..
This Forum..Consumers..the Public need to hear more from people like you IMHO....So let me say to you..
Thank-You Very Much for taking the time to explain and discuss your views so honestly..You have my respect and Best Wishes
I would be more than willing to discuss this topic or any other with you at any time in this Forum...
Zillow & it's staff have been very pro-active in trying to create a Level-Playing field for discussion in it's Forum...felt the need to say that because I feel they deserve it..
- Robert Rogala, "CableGuy2"
- Contributions:41
Dunes...
You have been the only voice of light on this whole real estate selling model.
It needs to change.
You have some great facts on the market that are very interesting.
Question: What is the total sales commission paid in 2009 or 2010?
How many billions?
I'd love to work with someone like you and Zillow to recapure a small percentage of that, and save the sellers huge money at the same time.
Brainstorming session on the barriers to seek and buy without buying agents, and barriers for the sellers. We crack that and we change the market. Zillow will have to partner locally to solve some of these issues and the barriers will go away.
Real Estate commissions add NOTHING for the U.S. GDP.
You have been the only voice of light on this whole real estate selling model.
It needs to change.
You have some great facts on the market that are very interesting.
Question: What is the total sales commission paid in 2009 or 2010?
How many billions?
I'd love to work with someone like you and Zillow to recapure a small percentage of that, and save the sellers huge money at the same time.
Brainstorming session on the barriers to seek and buy without buying agents, and barriers for the sellers. We crack that and we change the market. Zillow will have to partner locally to solve some of these issues and the barriers will go away.
Real Estate commissions add NOTHING for the U.S. GDP.
- Dunes....
- Contributions:3894
From the Dept. of Justice...
Consumers Can Save Thousands of Dollars in Commissions
Competing Models of Real Estate Brokerage
Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form.
Competition and Real Estate
Consumers Can Save Thousands of Dollars in Commissions
Competing Models of Real Estate Brokerage
Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form.
Competition and Real Estate
- Dunes....
- Contributions:3894
"I think the old saying you get what you pay for should be remembered"
It will be..as a "cliche" used in a manner that made it the lamest piece of BS tossed about by Agents as an reason/justification for choosing their option of Services or explaining charging more than a competitor...
You DO NOT always get what you pay for is a FACT and suggesting/using the "Cliche: as a reason to pay more is just lame lame lame lame lame lame lame lame!
Why do many Consumers often discount what Agents have to say?..
Cause IMO so many say LAME things like "You get what you Pay for" as if the Consumer was mentally challenged..
It's insulting!
It will be..as a "cliche" used in a manner that made it the lamest piece of BS tossed about by Agents as an reason/justification for choosing their option of Services or explaining charging more than a competitor...
You DO NOT always get what you pay for is a FACT and suggesting/using the "Cliche: as a reason to pay more is just lame lame lame lame lame lame lame lame!
Why do many Consumers often discount what Agents have to say?..
Cause IMO so many say LAME things like "You get what you Pay for" as if the Consumer was mentally challenged..
It's insulting!
- John King, "John_King"
- Contributions:425
I believe in the free market! There, it's out. I said it....
I do not personally discriminate on listings based on their co-op fee. I send listings to clients based on their needs.
I do tell them that I expect to make a minimum of $X for my services, and that MOST of the time, the seller's agent will cover that. If I find a house that meets their needs, and does NOT cover my fee....would they still want to see it?
Typically the answer is no, as we have PLENTY of inventory. The ones in good shape, available to show and priced correctly attract showings AND offers in a timely manner.
Great topic, one that always gets good responses.
I do not personally discriminate on listings based on their co-op fee. I send listings to clients based on their needs.
I do tell them that I expect to make a minimum of $X for my services, and that MOST of the time, the seller's agent will cover that. If I find a house that meets their needs, and does NOT cover my fee....would they still want to see it?
Typically the answer is no, as we have PLENTY of inventory. The ones in good shape, available to show and priced correctly attract showings AND offers in a timely manner.
Great topic, one that always gets good responses.
- Afshin Ben Rafael, "Ben001"
- Contributions:50
I think the old saying you get what you pay for should be remembered. If they are not charging much they are not doing much.as simple as that.
Wouldn't you want the best price for your house?
Wouldn't you want the best price for your house?
- Dunes....
- Contributions:3894
"Michigan's largest multiple listing service "unreasonably restrained competition" among real estate brokers by refusing to transmit exclusive agency property listings favored by discount brokers to Realtor.com and other public-facing Web sites, a federal appeals court has ruled."
"With $725,000 in backing from the National Association of Realtors, Realcomp has waged a 4 1/2-year legal battle with the FTC over its treatment of exclusive agency listings, racking up legal expenses of more than $2.4 million."
- Danielle DiBenedetto, "Danielle DiBenedetto"
- Contributions:13
Not the way to go in this market (at least by me) , its a waste of time- assuming you want to pay a flat fee for a by owner listing, if its in the MLS you still need to pay a minimum of 2.5% to a selling agent- and you have NO agent working with you, NO support and NO additional Marketing outside what you pay for, an agent has a lot more resources and networks to get your house marketed and sold for top dollar in as little time as possible. They have marketing reports etc PLUS they will save you a ton of time in appointments, advertising, most will perform a home audit that will tell you the weak points of your home so you can spruce it up for buyers etc... Realtors really are invaluable - we have the training and tools to get the job done. Posting an MLS listing will cost you more time, which will cost you more money in the long run
GOOD LUCK!!
GOOD LUCK!!
- Sarah Holick, "Sahmjh"
- Contributions:8
Our office does a "fee for service" listing. We charge sellers a flat fee of $49.00 to list their homes on MLS. We have a seperate contrct for these listings, drawn up by an attorney, that we use in conjunction to a listing agreement. Instead of an exclusive right to sell we use an exclusive angency listing agreement. We also offer other services to the seller that they can choose to buy or not. We do as much or as little as the seller wants. We do require all sellers pay a co broke at least 2.5% commission. We have helped many sellers sell their homes this way and save thousands of dollars doing so.
- Alan Strange, "Alan Strange"
- Contributions:93
Our mls is making strides to eliminate this. There's too many doing the minimum that it's presenting problems for owners. There's too much fiduciary responsibility to not act as fiduciaries.
- Danny Podesta, "Danny Podesta"
- Contributions:38
In Nevada real estate commissions are negotiable so you will see commissions from 1% up to 3% in the local MLS.
In our market the old saying, location location location has gone, and Price Price Price is what sells now!
In our market the old saying, location location location has gone, and Price Price Price is what sells now!
- Amy Cannon, "Amy Cannon"
- Contributions:2
What is the flat fee they charge? It depends on their fee structure.
I am not a discount broker. However, if this is how others choose to run his/her business, and sellers choose to pay a small fee for those limited services, then it's not up to me to make a judgement call on that.
The brokerage firm isn't doing a disservice to other Realtors or Real Estate Agents by offering a flat fee for a listing. However, in my opinion, the sellers are the ones that suffer at times by paying a flat fee because of the perception of some buyers agents. I know if I see a listing with a discount brokerage firm, my first thought is that the seller is less negotiable on price, and if the house if priced to high to begin with, then why bother showing it. Also, there have been times that I've worked a transaction with the discount brokerage offering a buyers agents compensation, yet instructing me to call the seller directly for communication and showings. What happens is, if our buyer clients decide to make an offer on that particular property, we end up working both sides of the transaction, yet only get paid for one side. Sellers typically don't know every minute detail involved in the process from offer to closing. So, while we're representing our buyers, we also (same as with FSBO's) are having to instruct the sellers on the next move, typically delaying the process and getting rather frustrated with not having a professional handling the listing side. In my opinion, this is why many buyers agents are hesitant to show some listings available from discount brokerage firms. This causes the house to sit on the market longer than average.
I am rather confident that a home can be listed in the MLS with no co-op commission offered at all. I don't know why anyone would ever choose to do this. In these instances, then we, as buyers agents, need to let the buyers know up front that they may be paying our fees to represent them if the home they choose offers less than what we charge for representation.
I also agree with Dunes in that it's up to the Realtor to educate the sellers in the first meeting with the pros and cons of brokerage fees so the expectations are realistic.
I am not a discount broker. However, if this is how others choose to run his/her business, and sellers choose to pay a small fee for those limited services, then it's not up to me to make a judgement call on that.
The brokerage firm isn't doing a disservice to other Realtors or Real Estate Agents by offering a flat fee for a listing. However, in my opinion, the sellers are the ones that suffer at times by paying a flat fee because of the perception of some buyers agents. I know if I see a listing with a discount brokerage firm, my first thought is that the seller is less negotiable on price, and if the house if priced to high to begin with, then why bother showing it. Also, there have been times that I've worked a transaction with the discount brokerage offering a buyers agents compensation, yet instructing me to call the seller directly for communication and showings. What happens is, if our buyer clients decide to make an offer on that particular property, we end up working both sides of the transaction, yet only get paid for one side. Sellers typically don't know every minute detail involved in the process from offer to closing. So, while we're representing our buyers, we also (same as with FSBO's) are having to instruct the sellers on the next move, typically delaying the process and getting rather frustrated with not having a professional handling the listing side. In my opinion, this is why many buyers agents are hesitant to show some listings available from discount brokerage firms. This causes the house to sit on the market longer than average.
I am rather confident that a home can be listed in the MLS with no co-op commission offered at all. I don't know why anyone would ever choose to do this. In these instances, then we, as buyers agents, need to let the buyers know up front that they may be paying our fees to represent them if the home they choose offers less than what we charge for representation.
I also agree with Dunes in that it's up to the Realtor to educate the sellers in the first meeting with the pros and cons of brokerage fees so the expectations are realistic.
- rockinblu
- Contributions:7202
I seriously doubt that you'll find anything in the MLS without a co-op. I would like an agent to clarify, or correct me regarding MLS rules, but I thought to appear, a co-op was mandatory.
- Dunes....
- Contributions:3894
Tony...How would the "Realtor would be doing him/herself and you a disservice with a flat fee just to submit it to the MLS." if that's what the Consumer decides is the option or Service they wish to use or need?.....
IMO Agents at the Very Very beginning should be explaining the options and how they work (I know many shout they do but posts by Agents in this Forum & other sites place serious doubt on that claim IMO)...
Upfront (First day, first 5 minutes and not just thru some paper they might not read/understand but verbally also) the Consumer should be made aware there are Properties (FSBOs) that offer them no Commission or less than they will accept...The CONSUMER can then decide if they wish to view these or not properties (pay the commission themselves) and/or decide if they wish to work with the Agent
Upfront & Honest....Hard often to take Agents seriously when they discuss the importance of Disclosure from a Seller when so many seem to disregard that very thing when Selling their own Services..
Agents/Realtors are supposed to be the PROs.. that's the justification for their value so they should conduct themselves accordingly and DEMAND the other Realtors/Agents do also.....or what value do they really offer? Not the one they suggest IMHO
BTW...Thumbs up Paul
IMO Agents at the Very Very beginning should be explaining the options and how they work (I know many shout they do but posts by Agents in this Forum & other sites place serious doubt on that claim IMO)...
Upfront (First day, first 5 minutes and not just thru some paper they might not read/understand but verbally also) the Consumer should be made aware there are Properties (FSBOs) that offer them no Commission or less than they will accept...The CONSUMER can then decide if they wish to view these or not properties (pay the commission themselves) and/or decide if they wish to work with the Agent
Upfront & Honest....Hard often to take Agents seriously when they discuss the importance of Disclosure from a Seller when so many seem to disregard that very thing when Selling their own Services..
Agents/Realtors are supposed to be the PROs.. that's the justification for their value so they should conduct themselves accordingly and DEMAND the other Realtors/Agents do also.....or what value do they really offer? Not the one they suggest IMHO
BTW...Thumbs up Paul
- Tony Roberts, "TonyLRoberts"
- Contributions:72
I guess it would vary on what services you would like to be performed and that would have to be worked out with a local Realtor. It's my opinion that the Realtor would be doing him/herself and you a disservice with a flat fee just to submit it to the MLS.
- mckylie
- Contributions:5034
Paul brought up a good point. In order to be successful, a Buyers Agent's commission should be offered. Otherwise they would be working for nothing and in that case I kind of wouldn't blame them for shying away from Flat Fee listings and/or FSBO!
Putting house on the MLS for a flat fee
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