Good questions to ask a local full-service realtor... Congratulations on having the understanding already that the broker representing the buyer will have to do more work to sell your home than another property listed by a full-service broker!
The first question I would ask is which local agents have a track record of selling price close to asking price. Then ask what service fees are offered by these successful agents on the listings they have recently sold. If your goals include the best net financial result, you owe it to yourself to hire a strong full-service broker from the start. The vast majority of For Sale by Owner and discount broker "sellers" end up with a full-service broker anyway by the time they sell.
Discount (flat rate) brokers encourage sellers to list their homes with no service while offering to pay top professionals a fee to negotiate in favor of their buyer clients. The net result is lower price & worse terms for the amateur seller and larger benefits for the professionally-represented buyer. Other writers have accurately pointed out that longer time on market (which ususally means a lower selling price) and a much lower success rate also tend to occur with discount brokers).
Would you go to a cut rate doctor or the one with the best credentials? Just a thought Terry K 718-614-3167 cell or email me firstname.lastname@example.org
A fair commission establishes an incentive to engage and motivate professional real estate agents to show and sell your home. The flat-rate, under prices the commission, on your home, could in fact place the home at a disadvantage in the market much the same way over-pricing the home itself does. I just sold a 3 family on Linden st. because, the commission and price were just right it took me 28 days to sell it, go into contract and we will close by the second week of November.
Please beware that so called flat-rate commissions are just for listing the property for sale and their is a different fee for selling it. If you have any questions or thoughts, I will be delighted to hear from you.
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Century Homes Realty Group llc
Direct Line: 347-932-0609
Thanks for your question. I love questions that already have answers. You just want to make sure you are on target, right/?
What your post shows is that you do really know more than most agents. After all, if all it took to sell a home was the percent paid to the buyer's agent, who'd need listing agents, right?
Or is it possible, in your expansive experience in real estate, that you missed something? Sorry, but I find it amazing.
Let's start with the link below. While you are figuring out what to do, your market is declining. According to this link. 4.9% over twelve months. That equals about 4/10s of a percent, per month. So, in a declining market, you are going to pay a buyer's agent something...let's say 2.5%. You are going to pay the flat fee service $2,500 - $5,000.
So based on the average home sale of $450,000 that means that you are paying the MLS Entry Only company about 0.5%. You are paying the buyer's agent 2.5%, so you are trying to save 2%.
2% of $450,000 = $9,000.
If your property is worth $450,000, and it is on the market three months, that is $5,400. Now you are trying to save $3,600.
Let's look at the facts:
MLS Entry only brokers offer one benefit - low cost. So if you property goes on the market, you are banking that your extensive real estate experience will allow you to sell to a buyer's agent. Here are the facts on MLS Entry Only Brokers or Discount Brokers, whose performance I track each quarter:
1. Listings by MLS Entry Only or Discount brokers fail to sell twice as often
2. When they do sell, they sell, on average, for 2 - 2.6% less than full service brokers.
3. If they sell, they take longer to sell.
All Realtors are not equal. Let me ask you this: If you were interviewing Realtors, and you brought me your resume, would you hire you? based on your track record?
Interview three, Realtors, compare their proposals, then do what you think best.
If you are flexible on what commission you are considering offering, reconsider the flat fee broker. In my experience, homes listed with these services have a poor record of selling. In many cases these companies have more canceled and expired listings than sold ones and those that do sell often sell for a larger discount than those offered by full service agents.
Interview some top agents in your area and discuss your options openly. Not only will a quality agent save you some work as you already acknowledge, they will protect you from many possible snags which will cost you time and money. A good agent is worth more than their commission, but a bad one will cost you even more. Best of luck.
I can't speak for Queens, and there may well be some variation by community or area.
However, even assuming the second flat-rate rep is correct that the most common ranges were 1.5%-2%, that doesn't necessarily mean that's what you should offer. Maybe the other sellers are just trying to really economize at both ends. Nothing wrong with that, but that can sometimes result in unintended consequences.
Try to determine (maybe from the first flat-rate rep) what the most common commissions offered are for full-service transactions. As you yourself note (and it's an insight that a lot of folks don't have--so, kudos to you on that), the transaction is likely to be more difficult for the buyer's agent since he/she, in effect, will have to do the job of both the buyer's agent and the listing agent. As a result, you want to make sure that the agent is appropriately compensated.
The problem right now is that you've gotten two difference pieces of what should be factual information (what are the most common ranges of commissions paid to a buyer's agent) from two different sources. You first need to resolve that. And then, using that information, you can make a better decision on what you should offer.
Hope that helps.