Good Stats Keith,

I am not a discount broker but I also dont take all my listings on at 6%. Just wanted to see some more info on the property.


Sean Dawes

Fred
Just a few tips.
You get what you pay for.

In my MLS I monitor the performance of Full Service Brokers versus MLS Entry Only and Discount Brokers.
Each quarter the statistics are about the same.
1. Homes sold by MLS Entry Only and Discount brokers make up a small percentage of total listings sold. 3.7% to be exact. Don't you think it should be higher?
2. Homes fail to sell more often when listed by MLS Entry Only or Discount brokers. A 38% greater chance of your home NOT selling.
3. Homes sell for less. The average price of a home sold by a MLS Entry Only or Discount Broker sold for 99.6% of asking price (when selling within 30 days) compared to Full Service Brokers at 101.2%. With such a small sample (51 sales compared to 1,320) averages are difficult to judge, however, you can see that when they say "discount", that also means "selling your home for less".


How can these statistics be?

We see questions all the time from sellers listed with MLS Entry Only and Flat Fee brokers who ask "why is my home not selling?"
The problem is that when you are selling your home with a flat fee broker, you are still paying the buying broker. Let's say 3%. They charge you a "flat fee" which varies in price, let's say $1000.

The median price according to Trulia is $162,500. $1,000 sounds like a good deal. You pay $4,875 to the buying broker, you save $3,875. So that's your goal.

If you home sells.

If it does sell, it will sell for 1.6% less than if a full service broker sold it - or $2,600, so your net difference is $1,275. Are you prepared to risk NOT SELLING or taking LONGER TO SELL for $1,275?

Hunt - there is a REASON that the vast majority of home sales are by full service brokers.

Fred,

I can offer the same services as other realtors plus the services of a full fledged marketing company. I work with new construction, resale of residential, commercial, as well as rentals. I do not try and collect the 6% which we typically see.

I am knowledgable on the Norristown market and have listings in all counties (Montgomery, Bucks and Philly). Some agents like to specialize but in all honesty buyers move from county to county.

Shoot me an email at sean.dawes@longandfoster.com and give me some more information.


Sean Dawes

Good Evening Fred,

Just curious as to why you are concentrating on a flat fee broker, other than the obvious of saving on commission. Normally a flat fee broker is not going to do the extensive advertising or the negotiating necessary in selling a home and most importantly GETTING the home to SETTLEMENT. Extensive advertising is KEY in this type of market. Think about it...is a flat fee broker making enough to be able to market your home the way it should be? The mortgage situation is ever changing and becomming more and more challenging at this point. Many settlements are being postponed and/or cancelled due to these more stringent situations with the mortgage companies. Therefore it is EXTREMELY important, more than ever, to have a Realtor representing you who understands the ins and outs of the mortgage world. What good does an agreement of sale do for you if it never gets to the table.

My opinion, especially in this market, is to concentrate more on experience, knowledge and again experience when choosing an agent to market your property. The Realtor should know your area well. They will be available to you via email, cell phone and even text messaging if that is your preference. They should be a FULL TIME Realtor so your home gets the attention it deserves. They should be local so they are available when a potential buyer wants to see your home. They should provide you with consistent feedback from the showings.

I can see that you are in the E. Norriton or W. Norriton area due to your zip code. I grew up in Norristown and know it well. If I can assist please feel free to contact me and remember in PA commission is always negotiable. Just be sure to know the differences with flat fee brokers as compared to a full service broker. In the end it can mean the difference between your home settling or going back on the market. I'd be happy to discuss the differences and the pluses and minus if you'd like.

Good luck with your search.

Jennifer Daywalt, Realtor
Re/Max Results Realty
Top Realtor 2004, 2005, 2006, 2007, 2008
Author of "Ask The Realtor" in the Saturday The Phoenix Newspaper
610-999-7693 Direct
610-489-7355 Main Office
Sellinghomesjenn@aol.com