Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Can you share your experience with Flat Fee Listing Services. While I am not unhappy (in fact the opposite) with our listing agent I really can't see the value. I think our listing agent has shown the home once and all other showings have been from agents who have located us via MLS. Even if we contract an attorney to draw up the paperwork we come ahead and quite frankly, a Real Estate Attorney will be better suited at that stage of the process anyway. We are very capable of handling negotiations and in our area it is extremely easy for anyone to access what homes sold for and when they sold. So, finding comps won't be a problem either.
There are several Flat Fee Services in our area, that utilize a centralized appt service, feedback services, and the Supra lockbox.
I would really like opinions of home sellers that have used these services.
When you hire a Realtor, you are paying for service. A flat fee agency can be dealing with hundreds of listings, and you could easily get lost in the shuffle. If you want to be able to call and talk to your agent, ask questions, get feedback, advice, have your home advertised, etc, that is what Realtors are for.
Can you share your experience with Flat Fee Listing Services. While I am not unhappy (in fact the opposite) with our listing agent I really can't see the value. I think our listing agent has shown the home once and all other showings have been from agents who have located us via MLS. Even if we contract an attorney to draw up the paperwork we come ahead and quite frankly, a Real Estate Attorney will be better suited at that stage of the process anyway. We are very capable of handling negotiations and in our area it is extremely easy for anyone to access what homes sold for and when they sold. So, finding comps won't be a problem either.
There are several Flat Fee Services in our area, that utilize a centralized appt service, feedback services, and the Supra lockbox.
I would really like opinions of home sellers that have used these services.
Thanks
I plan on using one next time around. This is the 4th home I'll be selling and I'm tired of spending over $20K for a service that just isn't worth the money, sorry realtors. I like the services that provide the MLS listing and lockbox. I will offer 3% to the selling agent which will save me $10K or so. I do all the scheduling of our home which is fine since I would need to know to leave. Besides we have a horse property in the country which is more specialized and see less traffic then a city residental area.
Let me know how you make out. I am planning on selling this summer if the market isn't too bad.
When you hire a Realtor, you are paying for service. A flat fee agency can be dealing with hundreds of listings, and you could easily get lost in the shuffle. If you want to be able to call and talk to your agent, ask questions, get feedback, advice, have your home advertised, etc, that is what Realtors are for.
The flat fee agency offers the same advertising (mls, realtor.com, google, etc.) that full service agencies offer, including brochures - which are easy enough to design and print). As I stated in my opening post, the service also offers feedback and scheduling services. So I am not sure what you mean by lost in the shuffle. I have sold 3 homes and have not NEEDED to contact my agent with any questions, we have negotiated, purchased home warranties on our own as well as contracted attorney and title services.
While I appreciate your perspective, I am really asking for opinions from people who have used these services and not whether or not we should use a Realtor.
There are different types of flat fee agencies
1) limited representation/MLS only
2) full representation flat rates
The concern about being lost in the shuffle is I think referring to the MLS only listing service, but you aren't asking for a lot anyway. You sound like you are looking at doing a limited representation/MLS only type of service.
I am sure I will hear about it from the other agents on this forum, but I personally have no problems with the MLS only service. I think there are a few buyers that are perfectly capable of handling their own transactions, and this is a valuable service for them. In selecting a company to go with, I suggest you go with one that offers a "step in" service. They typically change 1% or some flat rate to step into the transaction in the event that you find you are in over your head. I know that in the past you have not needed to contact your real estate agent, but that doesn't mean that this transaction will be an easy one. It's nice to have the prospect of back-up in case you need it.
The biggest mistakes I see with sellers of limited rep listings are not offering a good compensation, having terrible photos on the mls or none, not making it easy to show, and overpricing.
Since agents don't know whether or not the person on the other end understands the process of selling a home as well as your local real estate laws, so we agents are often skittish about MLS only listings. With so many homes to choose from now, some agents will automatically screen you out because you are limited rep, so you will lose a few buyers from that aspect.
There are different types of flat fee agencies
1) limited representation/MLS only
2) full representation flat rates
The concern about being lost in the shuffle is I think referring to the MLS only listing service, but you aren't asking for a lot anyway. You sound like you are looking at doing a limited representation/MLS only type of service.
I am sure I will hear about it from the other agents on this forum, but I personally have no problems with the MLS only service. I think there are a few buyers that are perfectly capable of handling their own transactions, and this is a valuable service for them. In selecting a company to go with, I suggest you go with one that offers a "step in" service. They typically change 1% or some flat rate to step into the transaction in the event that you find you are in over your head. I know that in the past you have not needed to contact your real estate agent, but that doesn't mean that this transaction will be an easy one. It's nice to have the prospect of back-up in case you need it.
The biggest mistakes I see with sellers of limited rep listings are not offering a good compensation, having terrible photos on the mls or none, not making it easy to show, and overpricing.
Since agents don't know whether or not the person on the other end understands the process of selling a home as well as your local real estate laws, so we agents are often skittish about MLS only listings. With so many homes to choose from now, some agents will automatically screen you out because you are limited rep, so you will lose a few buyers from that aspect.
Thank you for your thoughtful input. I can see your point about limited representation but do you think that would still be the case seeing that we are offering the full 3% buyers agent commission and having an attorney take care of the contract portion? 3% is customary in our area (6% with 3% to sellers agent and 3% to buyers agent). Also most of the listing services I have seen do offer this step in service that you referenced.
As for your other points.
We will be able to use the current photos which are quite good, very bright and well done. We have photos of every room, except maybe the powder room. We have not refused any showings or requested different showings times, we understand the market is very competitive and we are not going to take any chances on losing a sale over a showing time squabble. And as for your last point about pricing one of the reason we are considering this option is it will allow us to price below competition and still net a nice profit. So it seems like a win/win for us and the buyer.
Given all the extra info/answers to your points, I think this is a good fit. Your opinion?
I would verify that you can use the current photos. The photos are the copyrighted property of whomever took them. So if your agent took them, then they belong to the agent. If a professional took them, then they belong to whomever it was agreed they belong to (usually the person who pays for them).
Obviously 3% is very competitive, so that is great. Some agents will still screen out the listing based on the company...not much you can do about that.
The only caution I have about attorneys is that they can't always respond quickly. Make sure you have one on retainer who can respond to offers in a timely manner. Nothing worse than waiting two weeks for an attorney to review a standard contract, and then cross out the most basic of terms...You don't want potential buyers to get frustrated with any delays and move on.
Really this is a personal decision. The clients I have seen who do fine with this are really savvy. They real study what they need to do and know the basics of negotiation, are reasonable and accommodating. Out here, I hate having to explain to limited rep sellers, that changing their smoke detector is not negotiable, it's law. That kind of stuff...drives agents crazy...
There's a pretty simple formula for you to find out what you'll save or lose.
You need each agents (not company) average days on market, average list to sell variance, and commission. If an agent doesn't know their numbers get rid of them and find a knowledgeable agent who does.
Example one: 6% commission, 90 DOM average (lets assume $1000/mo. mortgage), 97% list to sell means you can expect to net 91% and pay $3k in mortgages.
Example two: 7% commission, 60 DOM, 99% list to sell means you net 92% and pay 2k in mortgages.
Example three: 4% commission, 120 DOM, 96% list to sell equals net of 92% plus 4k in mortgages.
I hope those examples help. That way you truly find out what you can expect as a bottom line instead just making a commission decision which isn't the only net factor.
There are different types of flat fee agencies
1) limited representation/MLS only
2) full representation flat rates
The concern about being lost in the shuffle is I think referring to the MLS only listing service, but you aren't asking for a lot anyway. You sound like you are looking at doing a limited representation/MLS only type of service.
I am sure I will hear about it from the other agents on this forum, but I personally have no problems with the MLS only service. I think there are a few buyers that are perfectly capable of handling their own transactions, and this is a valuable service for them. In selecting a company to go with, I suggest you go with one that offers a "step in" service. They typically change 1% or some flat rate to step into the transaction in the event that you find you are in over your head. I know that in the past you have not needed to contact your real estate agent, but that doesn't mean that this transaction will be an easy one. It's nice to have the prospect of back-up in case you need it.
The biggest mistakes I see with sellers of limited rep listings are not offering a good compensation, having terrible photos on the mls or none, not making it easy to show, and overpricing.
Since agents don't know whether or not the person on the other end understands the process of selling a home as well as your local real estate laws, so we agents are often skittish about MLS only listings. With so many homes to choose from now, some agents will automatically screen you out because you are limited rep, so you will lose a few buyers from that aspect.
The worst pictures I saw were listings with a realtor, and home owners have been writing on this forum to complain and how difficult it is to have it changed.
I will only go with a flat fee MLS listing and will offer the same as realtors do to the buyers agent.
About losing out because agents will automatically screen you out,, do they want make money or not? I think that buyers and sellers are using the internet so much that a lot of websites are just as much visited by buyers and sellers as by realtors.
There's a pretty simple formula for you to find out what you'll save or lose.
You need each agents (not company) average days on market, average list to sell variance, and commission. If an agent doesn't know their numbers get rid of them and find a knowledgeable agent who does.
Example one: 6% commission, 90 DOM average (lets assume $1000/mo. mortgage), 97% list to sell means you can expect to net 91% and pay $3k in mortgages.
Example two: 7% commission, 60 DOM, 99% list to sell means you net 92% and pay 2k in mortgages.
Example three: 4% commission, 120 DOM, 96% list to sell equals net of 92% plus 4k in mortgages.
I hope those examples help. That way you truly find out what you can expect as a bottom line instead just making a commission decision which isn't the only net factor.
How did you come up with these numbers? I don't think you can have these numbers as a fair compairising for the whole country. I have heard that Madison Wisconsin has the biggest FSBO in the whole country and are doing very well. By the way after buying and selling a couple of homes I will use FSBO as much as possible and deal with an agent if needed. So far it didn't add any value only cost me a lot of money in commision.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
And as for your last point about pricing one of the reason we are considering this option is it will allow us to price below competition and still net a nice profit. So it seems like a win/win for us and the buyer. 
, and home owners have been writing on this forum to complain and how difficult it is to have it changed.
, do they want make money or not? I think that buyers and sellers are using the internet so much that a lot of websites are just as much visited by buyers and sellers as by realtors. 
I don't think you can have these numbers as a fair compairising for the whole country. I have heard that Madison Wisconsin has the biggest FSBO in the whole country and are doing very well. By the way after buying and selling a couple of homes I will use FSBO as much as possible and deal with an agent if needed. So far it didn't add any value only cost me a lot of money in commision.
