Anyone use flat-fee MLS successfully in this market? (Chicago: flat fee, short sales)

[beebelle]

I sold my last house to someone from the neighborhood (no brokers fees whatsoever), but I also used a flat-fee MLS broker (now out of business), which provided me with a great sign, and a la carte services (such as holding an open house when I was working).

I'm thinking of using Kale Realty's flat-fee service this time around -- anyone used them successfully? If so, please tell me about your experience with them.

Anyone else have experience with a Chicago-area flat-fee broker? I've only read Kale Realty's website, and have nothing else to go on. I'm in the North suburbs.

Thanks for sharing your experiences.

[GoCUBS1]

Also check out my thread....

//www.city-data.com/forum/chica...e-listing.html

I was one of the few who did sell my home in the Fall. However, I did not use the flat fee service. I ended up using a good realtor who offered a discounted commission.

p.s. I am currently looking to buy a home and, to me, it seems like many homes are still overpriced for the market. I was thinking about making an offer on a home in the North suburbs and then the owner decided to re-do the kitchen and increase the price $70K.... So I'm still on the sidelines looking for that great PRICE. I think a lot of potential buyers are like me.

[beebelle]

Who was the realtor, and how discounted was the commission? The Kale realty site says it will list your house (if it doesn't sell using flat-fee MLS) for 1.75 percent. Most realtors where I live still want 5 percent (2.5/2.5). I was thinking of offering 2 percent to a buyer's broker, and using the flat-fee service. Curious if it's possible in this terrible market. FSBO worked well for me four years ago in a booming market. My next door neighbor sold her house FSBO (no broker at all) last year by holding open houses every week for six or eight weeks. Someone from the neighborhood bought it.

[GoCUBS1]

Originally Posted by beebelle

Who was the realtor, and how discounted was the commission? The Kale realty site says it will list your house (if it doesn't sell using flat-fee MLS) for 1.75 percent. Most realtors where I live still want 5 percent (2.5/2.5). I was thinking of offering 2 percent to a buyer's broker, and using the flat-fee service. Curious if it's possible in this terrible market. FSBO worked well for me four years ago in a booming market. My next door neighbor sold her house FSBO (no broker at all) last year by holding open houses every week for six or eight weeks. Someone from the neighborhood bought it.

It was an independent ReMax agent (no longer in business) and I think it was 4 1/2 percent (plus another 1/2 -1% refund if I bought through her w/in a timeframe - I have not). From my understanding, 6% was the norm at the time though obviously the market is quite different now. Maybe the business model of the independent ReMax agencies allows more flexibility in offering lower commissions - not sure.

If I did the FSBO, I was prepared to offer up to 3% to the buyer's agent (I was a highly motivated seller). As a buyer now, I'd consider a FSBO for the right house/neighborhood, at the right price (e.g. some of the commission savings was passed on to me, the buyer), with a good home warranty. And I'd probably only find the property if it's listed in the MLS. Though I do know of some highly desireable communities where FSBO homes have been sold just by their sign and being listed in the community newsletter (without MLS). Not sure if this is likely in the current market though.

If you're not in a hurry, you could try a FSBO/flat-fee for awhile B4 listing with a realtor...

[jamaicabound60565]

Gocubs made a good point. I think a lot of buyers are buyers getting into the market basically just because of low prices, I recently bought and that's why I bought.

With so many foreclosures and short sales out there you need to be priced really competitively to attract these types of buyers.

I would also recommend not doing renovations. Sure some people will say you want the house to look nice but witht eh example go cubs made, someone redid their kitchen to their style and raised the price a bunch.

Personally I'd rather get a place at a great price with a jacked up kitchena and re=do it myself. Not only would I be able to do it for cheaper but I would also have it done in my style and not someone elses.

[chet everett]

The "buyers perspective" regarding updates that jamaicabound shares is not all that common, and does not really reflect the SINGLE BIGGEST FACTOR that every sellers needs to consider: COMPETITION.

If you are going to look at the other homes that available in your area you absolutely need to price yourself against then very competitively, on that we have no disagreement. Where I would disagree is that a competitive price alone will NOT bring in buyers. If the majority of other homes have upgrades that you do not it will be much harder to sell your home even if you price below what they are asking. People are much more likely to quickly make an offer on a home in good condition than one that needs work. A well done upgrade will by definition be appealing to buyers, and the best upgrades make a buyer want in ASAP. A home needing work, even in the most eager of renovation minded folks, inspires the buyer to see if there is maybe even a better deal around the corner...

In a similar vein, and very relevant to the discussion of FSBO / flat fee MLS brokers is that fact that in a situation with any kind of competition at all the home that is represented by a responsive and well organized agent will get better offers and quicker close than the unrepresented home. This is very practical thing -- suppose you see a flat fee home listed online and in the same block there is a fully represented home. You ask you agent to show you both. You agent follows the procedure in the MLS notes for both, and just from ease let's say both are on automated key box (though I suspect that many flat fee brokers are not able to use a keybox for liability reason and/or MLS restrictions). I will even grant you that both homes are in similar condition. If the buyer likes them equally well would the buyer then not submit an offer to each for about the same price? The full represented seller would have an agent negotiating for the best price / terms for the fully represented house, while the flat fee agent, if they even return the offer with any negotiations, has no skin in the game and will get paid the same...

[jamaicabound60565]

I would have to disagree with Chet to a certain extend. Sure some people with families don't have the luxury of being able to move in at your own pace, redo a kitchen ro live iwthout a kitchen for a week or two when you have kids but in the example given soemne redid their kitchen and raised the price 70k.

I would much rather move in to a place with an outdated kitchen, fix it myself for about 7k and save myself 63k. Plus somene did a kitchen remodel and probably did something relatively neutral that I may not even like anyway.

Many people comming into the market are young people getting their first place and low price is very important. I can't speak to everyones situation but that was mine when i recently bought and I have about 6 or 8 buddies who are in the same boat just looking for something cheap to fix up themselves to their liking and live in it. The area this home in this post is in is an area lots of younger people are moving to as well so thats why I threw out my logic b/c i imagine other young people buying a first or second place think the same way.

[chicagoRE]

I would LOVE to know how anyone can re-do a kitchen for $7k, not likely. Chet is spot on.

[hippie_chick]

What's with all the bots?

[MSchemist80]

Originally Posted by chicagoRE

I would LOVE to know how anyone can re-do a kitchen for $7k, not likely. Chet is spot on.

Me too. I am looking on having my Mother's kitchen partially gutted and expect it should be ~$30-50k