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Old 03-26-2010, 03:00 PM
 
Location: Nashville, TN
8 posts, read 10,619 times
Reputation: 10

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I'm thinking about usiing a DREB to list my home for sale. My question is this - since they charge a flat fee to list and manage the sale of my home - with the standard 2 1/2-3% fee to the buyer's agent - what is the incentive for my agent to want to sell my home for the highest amount possible? Wouldn't he be inclined to urge me to accept the first offer in the ballpark (so to speak) to be able to have my home sold?
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Old 03-26-2010, 03:08 PM
 
Location: Cary, NC
780 posts, read 4,054,420 times
Reputation: 1316
Why can't you decide what offer to accept? If you need a lot of hand-holding, then maybe a discount broker isn't for you...
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Old 03-26-2010, 05:04 PM
 
Location: Barrington
53,135 posts, read 37,305,502 times
Reputation: 17278
State laws vary and I do not want to assume.

What does " manage the sale " of your home mean?

Most flat fee brokers never see the property or know the competition.

How can they possibly help you negotiate?

Most flat fee brokers have no incentive to get you sold because you pay them up front.
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Old 03-26-2010, 05:08 PM
 
Location: Columbia, SC
9,566 posts, read 18,870,798 times
Reputation: 7494
Ultimately you are in control of what you accept. I suggest interviewing several listing agents and decide which will net you the most money. It could be in the end you'll end up doing better with a full service agent, or maybe not.

Easy way to do it: Ask average sales vs. asking price. If Agent 1 charges 4% and nets 94% on average, you'll get 90% (100-6-4=90). If Agent 2 charges 6% and nets 97% on average you'll net 91%. (100-6-3=91)

Good luck with your sale.
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Old 03-26-2010, 08:46 PM
 
Location: Salem, OR
14,475 posts, read 34,578,138 times
Reputation: 13882
I am a fee-for-service broker so I offer flat rates. I can also tell you that if you want the discounted rate my fee is guaranteed regardless if the house sells. That's because my flat rate is really what is costs me to do business. Commissions are about risk and reward. With commissions it is all or nothing. If we agents sell your house, then we get paid, if not, nothing. It's not about working harder. I work just as hard either way BUT I'm not willing to work hard, for less money, AND take the risk of not getting paid. If you are going with a flat rate company that doesn't require a front end or back end guaranteed fee of some kind then I would be dubious that the company will remain solvent.

I also think you need to consider realistically how many offers you are going to get. Most people are happy with getting AN offer these days...unless you price your home really low to drive up bidding. If your agent cares about building future business their incentive to get you the best price is to have you asking for a stack of business cards that you want to hand out to your friends because you thought they were great. You are just one transaction, but your word of mouth advertising is priceless to real estate agents.

I completely agree with Brandon. Interview several agents with differing real estate models of service. That way you can compare what is the best fit for your needs.
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