Flat-fee real estate brokers take a flat listing commission - depends on what other services you get with a flat-fee broker on how much exactly that flat fee is, but they charge somewhere around the $500-$1500 ballpark whether it sells or not. If it expires (doesn't sell) and it's time to renew, they charge another $500 or so to put it back up.
You still offer up a selling commission, which should remain competitive (3-3.5%), but only gets paid when it sells. All inquiries on the property go through you - including agent showings. It's your responsibility to do additional marketing (usually) and to do Open Houses. You're pretty much by-owner, except that it goes on the MLS for Realtor participation in showings.
In my opinion, flat-fee brokers are sell-outs and they get paid for doing next to nothing. They rarely offer any sort of seller guidance and serve very little purpose. They shouldn't even be considered Realtors in my opinion. The ethics of it all is questionable.
You can just list it by-owner and offer a selling commission in the listing. It's pretty much the same thing, only you save the $500-$1,500. If it expires multiple times, you're out even more money - even if it doesn't sell, and may ultimately cost you more in the long run than listing it with a full-service broker (depends on your price). For example, on a $150,000 house, the savings for a one-time listing is about $3,000 (IF it sells at all). If you re-list it twice (flat-fee contracts are usually 3 months and average time to sell a home is 4-6 months in this market), it's only a savings of about $1,500. This doesn't even take into account the fact that Realtor guidance yields seller-clients thousands more in contract sales prices than sellers with little or not guidance. So it may financially make more sense to sell it with a full-service agency, especially considering the cost of marketing the home yourself and the time to do it. Full-service listing agents really do earn a commission most of the time - especially in these difficult times in the real estate market.
Full-service agents ONLY get paid when it SELLS, which is a guarantee that your money will get results. Hope this helps. Sorry for the rant - just trying to preserve the reputation of my career. lol.
Full-service (non-discount) Realtor.
· 9 years ago