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Terri,  in Stateline, NV

I am considering using a broker that charges a flat fee, and then I would list my house on the mls with a 3% to buyers broker, pros and cons plz

Asked by Terri, Stateline, NV Wed Jul 13, 2011

I am considering using a broker that charges a flat fee, and then I would list my house on the mls with a 3% to buyers broker, pros and cons plz

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I am not from Vegas but, I will tell you about an experience that I had representing a buyer who purchased a home from a seller who had a flat-fee agent. By the end of the transaction, I was feeling sorry for the seller--my buyer got everything that he wanted, including the price and all of the repairs! Believe me, the seller could have paid the listing agent AND had more money in his pocket at the end of the day, had he had full-service representation. To have your listing only listed in a few places and an agent who doesn't have contact with other SELLING agents is a detriment to any seller. Most seasoned agents have sold HUNDREDS of homes--how many have you sold? In my opinion, it's not worth the gamble.

Put it this way, you get what you pay for.
5 votes Thank Flag Link Sun Jul 17, 2011
Unless you want to do it yourself, make sure you are interviewing all types of agents. You don't want to go with the one promising you the moon in price and you may not want to go with the cheapest!

Best of luck!
5 votes Thank Flag Link Sun Jul 17, 2011
As a previous flat fee brokerage owner- when we conducted that type of structure we required that the seller do some of the work-- ie open houses etc. to procure their own buyer, but if a buyer was brought thru the mls we would charge a higher commission to conduct that type of transaction--
In this market you need full exposure and a diligent agent that will represent you thru the entire process--
Take it from an agent that has conducted both types of models--- a full service agent is the best way to go in this market---
Web Reference: http://www.mayteamlv.com
3 votes Thank Flag Link Thu Jul 14, 2011
I'm sure you'll get some "flat fee" agents chiming in here, giving you the "pros", so I'll give you my view on the cons of using a limited service agent:

1. Marketing. Limited exposure, and virtually zero marketing. Yes you're in the MLS, but will you be on all the major real estate websites? Will you be in the local newspaper and local real estate magazines? Will you have open houses every weekend? Will you have your own property website with all the details of your property? Will you have a property brochure w/ QR technology? Will your home be advertised on TV? Probably not.

2. Pricing. By using a flat fee agent, you'll likely not get an accurate CMA, which will result in pricing your property incorrectly. Most FSBOs list their home for what they think it's worth, or what they want to get out of it, without looking at actual comps. A full service agent will do a comprehensive CMA that looks at sold listings, active listings, withdrawn & expired listings, etc. to get a good picture of what your property should sell for.

3. Showings. By using a flat fee agent, you may be responsible for handling showings yourself. Do you have time to drop what you're doing and go show your property on a moment's notice? Just the other day, I couldn't show a property because the home owner could only show the house after 5 pm on weekdays. That didn't work for my buyers schedule, so we didn't get in. Missed opportunity!

4. No one looking out for YOUR best interests. I see lots of people on Trulia asking for advice, as they are in the middle of a transaction, and they aren't represented by an agent and there is a problem. Even if you have an attorney helping with the contract, there are many more issues at stake here. You stand to lose a lot of money by not being represented properly.

I could go on and on...but you get the picture.
Web Reference: http://www.sallygrenier.com
2 votes Thank Flag Link Wed Jul 13, 2011
Terri,
If you are very knowledgeable in Real Estate matters, can keep up with comparables, read and understand the contracts, timelines, legal requirements a flat fee broker may be a good option. Most people aren't up to speed on these matters, that is why the vast majority of homes listed with these companies are canceled or expired and do not sell.
In most flat fee arrangements you will be dealing directly with the buyer’s agent. Some agents aren't very good, others are seasoned professionals who will out negotiate you on any number of issues. It's not just about price, but lots of other terms and conditions as well.
My suggestion is to interview some full service as well as flat fee/minimum service companies and choose the best possible agent from your group. A good agent brings value to a transaction; a bad one will cost you more than money. Best of luck however you proceed.
2 votes Thank Flag Link Wed Jul 13, 2011
Ask the broker charging a flat fee when was the last house sold, what was the asking price, what was the sold price, how many houses have they sold in your neighborhood in the last 6 months.
In this enviornment, I am looking for the broker that actually closes deals, not how cheap the agent is

DAVID COOPER Foreclosure and Bank REO's Specialist-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
0 votes Thank Flag Link Wed Jul 20, 2011
As a Las Vegas Realtor the best advice I can give you is to interview several Agents and let them tell you what they would list your house for, show you all recent activity in your neighborhood, and after comparing all costs and benefits then make a choice on what is in your best interest.
Something else you need to be aware of is that FHA has changed their lending guidlines for Las Vegas and the $400K max loan limit is going away. The new max loan under FHA is going to be $287,500.00 and some lenders have already stopped accepting application over that amount. If your home is going to be listed between $287K and $400K then it will be much harder to get a qualified Buyer after this takes effect beccause buyers will ahve to either go Conventional with a higher down or be an all cash buyer.
There are a few lenders still writing the higher FHA loans but you need to list, market, AND close quickly. If you are uder the $287K cap then this may even be a good thing for you as it will drive more buyers into that price range.
Also most areas of Las Vegas are still declining and you need to factor in the longer your house sits the cost of that will be to your net price. It is not all about the "fee" charged by the Broker but the value you get for those dollars.

Did the "flat fee Broker" tell you about the changes coming for FHA??
0 votes Thank Flag Link Tue Jul 19, 2011
In my experiece, go with the normal, standard listing broker. You would hope the marketing done for your home is extensive so as to create as many people as possible seeing your house for sale. Flat fee brokers are a little limited on how much time and expense they do for marketing


DAVID COOPER Foreclosure Specialist with 35 Years Investing Experience in Las Vegas. For a Free List of Bargain Homes, see website or Call +1-702-499-7037
0 votes Thank Flag Link Sun Jul 17, 2011
Cons for this type of flat fee:
Generally you are contacted to schedule showings, we have a service that contacts the listing agent who then can prequalify the customers looking to view the home.
Also your marketing is just to other realtors, not the general public via websites, open houses, QR codes, etc.
Marketing your property along with pricing, location and overall condition of property are key for the best price, in the least time on the market
0 votes Thank Flag Link Thu Jul 14, 2011
Sally covered most of the cons. I also consider the sales skill of the agent. I want the best "salesperson" in this very difficult market. Whatever you think you might be saving in ther flat fee, can disappear if the agent doesn't know how to close a sale.

DAVID COOPER Foreclosure Specialist with 35 Years Investing Experience in Las Vegas. For a Free List of Bargain Homes, see website or Call +1-702-499-7037
0 votes Thank Flag Link Thu Jul 14, 2011
I mean, u get what you pay for. If the agent won't make as much on the property, then don't expect full market exposure except the mls.
0 votes Thank Flag Link Wed Jul 13, 2011
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