We just listed with a Flat Fee MLS company.. do realtors blackball these?

[middle-aged mom]

I have no issue with showing property listed by a flat fee broker or FSBO, for that matter.

The likelihood such strategies will result in a closed sale tends to be lousy for a several reasons:

Such properties tend to be priced according to what the seller needs or wants out of the sale which is not necessarily what the current and local market will bear, and/or

Buyers are aware the property is listed with a flat fee broker or by owner and they often expect to pocket the savings, and/ or

Sellers will not accommodate the showing date and time that works for the buyers, and/ or

Both parties make assumptions about each other. It can be as basic as the year/ model of a car. Sometimes it's a personality conflict.

The buyer's agent, especially a local agent familiar with the market , knows value. When a property is way outside of the normal range, it tends to sell the competition.

Every seller has a choice to get sold or sell the competition. This is true in any market.

Those committed to getting sold should have an attorney who will review a purchase offer and handle title and closing.

[nikitakolata]

Originally Posted by BrianHunter

I sold 3 houses with a flat fee broker. I basically acted as the selling realtor. I offered the buying realtor 2.5% commission which is what they would have received either way.

What extra work is there for a buying realtor if the seller is using a flat fee?

In my experience, quite a bit. I brought buyers to one such house and they wanted to buy it. The sellers had no idea what the process was like and bascially needed hand holding the entire time. They didn't understand the contracts and had no one to explain them, just as an example. The entire escrow was tedious because I had to constantly remind them that I represented the buyers only and could not give them advice or guidance since I was not willing to be a dual agent. They did not know how to negotiate inspection repairs and didn't have anyone giving them advice, and in the end I know for a fact they spent more than if they had simply hired their own representation due to their inexperience. It worked out great for my clients though.

Of course, everything middleagedmom said is true as well.