This is a good question but to answer it fully, I would be interested to know the entire scenario and what your overall goal is? Compensation is a negotiable item and you should sit down with a REALTOR and discuss what you would like to Net out of your property and the best way to meet your goal. Listing agreements outline the commission structure for listing agents, buyers agent and sub agent. You can do a flat fee but this is rarely done. If you would like to discuss this question or any other with me, feel free to give me a call or email message. I specialize in listing properties in the Austin Area.
Best Regards, Laura Rosales-REALTOR
If you are think that you want to offer less than most agents expect, than you may be doing yourself more harm than good. You can be driving away potential buyers.
Want to make agents SWARM to bring their buyers to your home. OFFER A BONUS.....not a discount. Think about it just based on the responses you have seen here.
There are agents that will show your home even with ZERO commission, but buyers are savvy too. I showed one a house like this the other day and the buyer started picking the house apart like there was no tomorrow. Shocked me. I just showed it to him as a courtesy while we were looking at other homes. I would have referred him to the listing agent if he had wanted to make an offer on it, and then what position does that put you in as a seller?
Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
Best Regards, Laura Rosales-Austin Realtor
People tend to have a picture of real estate agents, but really, we are a diverse group. For every deal-centric analytic number-cruncher, there's a former teacher or health care worker with a buyer.
The one difference is that the more touchy-feelie type of agent is likely to show a low-commission property to their client in the name of Customer Service, and the deal-centric agent with a Roladex large enough to require its own Dropbox account may decide that it's not worth their time to tickle the database over your discounted commission.
There are other permutations, of course. But as a practical matter, if the buyer's agent isn't going to get the commission from you, they're quite possibly going to get it from the buyer, which is going to be reflected in the offering price.
All the best,
Depending on your exact bottom line requirements, you may want to try and sell your home for sale by owner. Having said that, I have noticed For sale by owners selling for less than other homes with maximum exposure.
If you would like to see my different listing programs, feel free to visit my website or contact me anytime.
Flat fees are not often agreed upon especially on the buyer's agent side. I just sold a house where the buyer's agent was offered 2.5% (most of the time it is 3%) and unfortunately there were agents who told me they would not show the house because of that. Your listing agent can agree on a fee with you, but has no control over a buyer's agent decision to show your house or not. You should be more concerned with getting an experienced, knowledgeable agent who truly has your interest at heart and will sell your house under the best possible terms. Things happen sometimes during the selling process and a good agent will know how to solve problems. My fee is negotiable, so give me a call and let's see if we can agree on a mutually acceptable fee.
Vivianne Dordea, Realtor SRS, GRI
Sierra Homes Realty
Hard fact stats prove year after year, sellers taking this and other cheap selling techniques, will end up selling for 5-15% less than they would with a premium marketing plan and salesperson handling the sale.
12% is average loss for FSBO (for sale by owner). That's what you're doing here.
See, when you reach a smaller pool of buyers, you surface less offers. When you reach a larger pool of buyers and you hit them with a marketing strategy that is designed to get you a higher sales price, you not only surface more buyers, but you create a higher price war between them all.
High-quality buyers are the high price payers. Reach them, trigger their purchasing emotions, and drive a higher sales price every time.
Thinking that you are saving 3-6% on listing fees by hiring a flat fee agent is a myth and will cost you much more. Thats not a guess, that's a national statistic.
Major companies (that sell everything you use everyday) spend a lot of money on quality marketing plans and execution. That's not because they love throwing money in the trash, its because anything-less IS!
The good news about the process you are about to hndertake is that you'll never see it coming because you only sell that home once! Your lost dollars are hidden in the idea that your largest investment and most expensive product purchase of your life doesnt deserve a solid marketing and sales plan/execution.
I have proven this myself, over and over. I can share those stories with you if you like to inquire with me.
Flat fees are something that can be agreed to. I disagree that, as some implied, an agent would do "less to their best" or would deliver "less than expected" service. I doubt any agent can truely say they have "never" agreed to and accepted a discounted commission/fee. We do have to mke sound business decissions as to what makes sense. I'd be happy to meet with you and discuss all options.
GRI, CRS, ABR, CLHMS, e-Pro