The biggest and best reason to list with a broker/agent is so that the property gets marketed properly. Many sellers do NOT realize that many times Buyers agents bring Buyers to the property because of direct marketing a listing agent does on behalf of his Seller. A Buyer often times will see a property that the Buyers agent may never bring to the attention of their client. But because of the extensive marketing, advertising and hard work of a listing agent, the Buyer sees the property. At that time the Buyer will make his/her agent aware of the property and their interest known. This is what your paying a listing agent for. Not the MLS, but the exposure beyond the MLS.

I advertise my properties on about 25 different sites beyond the MLS to gain attention for my Sellers. I'm not worried about Buyers Agents bringing Buyers, in fact that's my goal! Get the property exposed so the Buyers can see it. If the Buyer has to tell their agent about the home then I've done my job! The listing agent's job is to get the home exposed so a Buyers Agent can sell it. Make the door open and close like a turnstile at an amusement park! this is what the listing agent is supposed to do.

When you hire a flat rate discount broker you'll pay an up front fee (usually in the thousands) and only get your home on the MLS. Then you are typically responsible for 'Open Houses', signage and anything else. the MLs doesn't sell homes the way it used to do a few years ago. You have to be more savvy than that. Have you noticed companies like Foxton's and Help-U- Sell companies going out of business? Guess why? Because they are discount brokers who only offer discounted services. The old adage still rings true: You get what you pay for!

By the way, I have a listing where my current Seller spent $4000.00 on a 'Flat rate' Broker and got NOTHING except her pocket picked for $4K. Now I have it listed. In less than 60 Days I have two offers and thousands of bonafide web hits to share with my Seller to prove the marketing I'm doing on her behalf. Do you think she's happy now?

See the link below to get a small idea of the property that was listed with a 'Flat Rate' broker who only made my seller $4,000.00 broker.

There is a different with flat fee services. I cannot speak on behalf of them all but in my experience they just list the property. They don’t market the property as a traditional agent would. In fact they make their money in many cases whether the seller sells or not.

On the other hand a listing agent will market the property. During the transaction they are involved during crucial times keeping the transaction together. Keeping a transaction together takes time, energy and cooperation. The ball can be dropped at any moment delaying the process, but they keep it moving.

Sellers think their attorneys will keep the transactions alive but we know better. Attorneys get paid when there is a closing and in many cases when there is no closing. Only the agents involved in the transaction call the appraiser, the bank, the title companies, the city inspectors, the attorneys, etc all the time.

Most importantly listing agents open the doors to buyers and potential buyer’s agents.

Yes the buyer agent brings the buyer but you should be aware that the listing agent brings buyers and sell their own listings quite often. Let’s not forget the seller’s agent has a very special relationship to the listing. First, when marketing the property they spend money out of their own pocket or their brokers pocket to advertise. They invest in the sale of the property and have the motivation to sell the property themselves. If they find the buyer they don’t have to split the commission. Let me rephrase that “they make more money if they sell their own listing”.

A buyer’s agent does not have the option, opportunity or choice of making more then what is offered. In my book choose an agent and list. You will have a very motivated friend and partner.

I would bring my buyer to preview such listing out of respect to my buyer and the Realtor code. However I will have to prepare myself to do the job of a listing agent and buyer’s agent all by myself. Given that I would not expect or get any help.

I'm a little troubled that many of the answers here seem to have answered only the first part of the original questsion. I would like to see answers to the second part: why pay a listing agent a commission, when it is the buyer's agent who brings the buyer. That is, why not get on the MLS through a flat-fee, while still offering commission to buyer's agents?

Sandy's question was not about FSBO. It was about flat-fee MLS. Buyer's agents, will you or won't you bring your buyers to a home for sale that will pay you the same commission you would get from a "traditional" listing?

Thanks.

Quality buyers/traffic is what sells a home. A flat fee commission may turn away agents with that potential buyer. A fair/good commission is going to help you steer buyers your way since the cooperating split will be more of an incentive. I don’t sanction this type of cherry picking real estate agents fall pray to, but it is an informal approach many agents adopt.

Positively speaking, at least you know what you are doing if you offer an attractive commission with a traditional broker. It’s like teasing a flesh eating tiger to eat a yummy steak. In the end, it all boils down to how fast do you need to sell in this sellers market?

The most important service an agent offers is maximum exposure!

Statistically, 80% of homes sold, are sold by agents.

Many things-- I am currently marketing a home in Ridgewood 1.65 on N. Pleasant - As you know the level of transactions that take place in RIdgewood- I'm sure you would agree most homeowners in Ridgewood are quite savvy and understand the significance of being represented by a professional. Check this weeks Ridgewood News:Friday's real estate section. For starters, your home would not be in there with a flat fee. Also check http:// http://www.bparkes.com for a list of some services. I would be glad to work with you- As I have worked in two of the more successful Ridgewood Brokerages- I know what is offered, needed and how the local market works. I'm sure you know it is a unique market. What school? Remember it is what YOU NET!! Too often people are worried about what the brokers fees are- One should not be penalzed for geing good at what one does-it is a very expensive line of work to be in -the cost is very high-- the sellers concern should be about what they are going to net-period. Hope this helps.

Brian

M broker allows me to take listing BOTH ways, either flat fee paying a buyer's agent commission or traditional "X"% listing. It all depends on the agent, I provide everything to my seller whether they pay me full price or flat fee. The level of service is what you should be looking for.

Dear Sandy,

Beyond the numerous advantages of listing with a seasoned professional who knows the neighborhood, who works with a reputable full service firm, being listed with that agent adds credibility to your presentation. When agents see a partial service listing company representing you as the seller, they see trouble ahead - the seller, rather than a professional handling the transaction, lack of training, limited market knowledge, reduced commission structure and much more on the negative side. One wrong move by an unqualified representative can cost you far more money than what you save in commissions - the only reason to utilize an under-qualified firm/agent.

When You list with true real estate professional who provides full service You get a numerous amount of benefits. First off, You get professional marketing which is key in this market, You get a quality CMA to ensure YOu price your home correctly to allow for it to sell for the most money possible. YOu get someone getting You feedback from the showings that occur so that You know what the buyers are saying about your house. You also get skileld contract negotiation & great representation. A good real estate agent will put more money in your pocket than they will charge You for your home will sell faster which means less mortgage payments & will sell for more than if you go at it alone or with a company that simply enters your home into the mls & walks away. Remember, You wouldn't go to court without an attorney, don't go for sale without a realtor!

Deborah,

So what you're saying is ...

Even though a skilled agent has a blackberry, laptop, air card, etc .. .. they can't do the job because they work for a limited service company.??


-

I completely agree w/ Marc. I have a blackberry, and a laptop w/ a T-Mobile acct and broadband access (air card). I like my laptop in my car for full screen capabilities. When I can't reasonably carry my laptop, I use my blackberry. I use my laptop while waiting in the lobby of an office for a closing, in my car while waiting for a buyer for a showing appt., or an appraiser, or an inspector, etc.

I also don't sleep much.....as it is currently 3am. I learned how to be an effective road warrior long before I became a real estate agent....and that was without a laptop.

I respect and value my client's time. There are times when my blackberry is off and I don't have my laptop....but, whenever I can multi-task, or grab down time and make it productive I do.

Sandy....I actually generated this post in response to the recent direction the thread has taken....

But........as you consider your options in choosing a lsiting agent.........time management, effectiveness, multi-tasking, are additional skills worth evaluating in addtion to those already covered on this thread. Limited service companies cannot offer this level of service and availability.

Best of luck to you, Sandy.

I have a Motorola Q and I can answer my clients from anywhere and even run MLS searches on it!

blackberry,,, ahh
I see

Road Warriors.. indeed. Any good agent should be on the go finding buyers for their listings!! Blackerry's are great...I carry my laptop everywhere! I am only benind a desk when I need to be!! You dont get business from spending the day sitting! Love your answer Marc!

Hi Jack,

Blackberry!

-Marc

tman, Marc,
very funny
The best agents are not desk jockeys, but road warriors?

Are you not behind a computer now wasting time in a very unproductive BLOG thread?
I see many realtors in here, spending hours telling everyone how great they are.
very funny. My guess is you are not on the road but at a DESK>?
just a guess

>>> "A good real estate agent is a road warrior rather than a desk jockey" >>>

Well said Marc ....

Hi Sandy,

Trying to answer your question above the noise... Use the agent who commits in writing to the best program for getting your home sold. The physical location of the agent's office is irrelevant, especially in this day and age when so much importance is vested in your online presentation. It's all about what your agent will do, not about where they are located. And remember, you are hiring an agent not the agency. The agency has little or nothing to do with the quality of your marketing. It is the talent, expertise, and experience of your agent that will be brought to bear on the problem of getting your home sold. Two agents who work in the same agency could be as different as night and day when it comes to implementation of a solid marketing plan. Agents are independent contractors. They work "in" agencies, not "for" agencies. Most of the best agents are hardly ever in the office anyway. A good real estate agent is a road warrior rather than a desk jockey.

Tman,

You are wrong, and it is about time somebody told you so!

My clients are extremely satisfied with me. Just like their Doctors or Lawyers who they keep coming back to, over 95% of my people return for my service. They are appreciative of what I do for them. Apparently, loyalty for good service is something you "just don't get".

Chris,

You absolutely kill any credibility you might possibly have when you print ludicrous statements like this:

*** .. Much like a doctor, lawyer .. ***




You might consider righting your ship instead of trying to sink it:

http://www.remaxlawsuits.com/

http://blownmortgage.com/2008/03/17/realtor-magazines-30-und…

http://www.inman.com/blog/2008/03/4/commentary-too-many-real…

http://www.usdoj.gov/atr/public/comments/225860.htm

http://rerclaw.blogspot.com/2007/06/ftcdoj-take-position-on-…


Didn't you leave off at: "trusted advisor for life..."...??



: ^)

Diann,



But .. we're all still waiting with bated breath for the "clincher" ...

How about we just do this ..

Without showing us anymore spurious NAR figures, lets just have Marc and Scott show us the difference by county or state or maybe by zip code, whatever works best for them ... but please, no more NAR figures.

-- this should be a very simple task since you're so ardent about this subject ...


: ^)

-

I just read the rest of the comments:

I think hiring a flat fee company would be just like hiring TMAN and HI

Sandy,

A REALTOR is a highly skilled and knowledgeable professional whose goal is to take the challenging world of real estate and make it as simple and seamless as possible to the people we serve…our clients.

First and foremost, REALTORS are constantly improving their expertise through continuing education, broker supported workshops and forums, learning new, cutting edge technologies pertinent to real estate, and other training opportunities that are available. It is vital that we bring the highest level of expertise to the table so that we are able to get the job done right for our clients.

Equally important, is our need to bring integrity to the real estate process. We are licensed by our state’s governing body and held to the highest of ethical standards by our governing body.

When selling your home, it is the REALTORS’ responsibility to cause your home to sell. Some of the ways we will accomplish this are:

• Aggressively advertising and professionally marketing your home.
• Showing you how to stage your home to accent its good points and minimize its more challenging areas.
• Marketing through multiple websites and various local media sources.
• Marketing by word of mouth to past and present clients.
• Promoting your property to other agents.
• Using technology to give your home a market presence 24 hours a day.
• Helping potential buyers obtain the financing needed to buy your home.
• Helping overcome buyer objections to your home.
• Helping negotiate the terms of the sale.
• Communicating with you on a regular basis.

Once a home is “sold”, we will:

• Arrange for the preparation of all of the documents required for closing.
• Help arrange for various home inspections.
• Renegotiate details which may arise after inspections
• Coordinate with attorneys, lenders and the title companies to help ensure a seamless close.

Much like a doctor, lawyer, or any other professional, a REALTOR is your trusted advisor. In matters of real estate, that person may well be your trusted advisor for life.

RE: Flat fee companies....you get what you pay for

Three reasons to hire a realtor
1. they have a lead development system that is better than your own,
2. you need to shift liability to another party with the errors and ommissions liability you get when you sell a home (this reason alone is enough - if you don't get this, then you never will)
3. you can't handle endless calls and random showings that occur at crazy hours when you sell your home.
4. The statistics say that you get better prices and a faster sale when you use a realtor but it doesn';t factor in that there really are bad realtors but that is the answer to another question.

I will definitely use an agent if we are on the market again! My husband didn't like the house I like. He can't look beyond the dirtiness and condition of the house and do not want to even consider to put our house on the market. After looked at that house, he realize how much our house has to offer. Thank you all! A different question: If we are in the market again, should we work with an agent whose office is located in town or it doesn't matter?

sandy

keep your house

not a good time to sell your house

then you don't need to worry about agents

anyways

good luck

Marc gave a fabulous answer about all the services a really good agent provides, most of which are usually outside of the range a seller can offer themselves. A good agent also helps protect the client from possible litigation after the sale.

But Scott really brought up the clincher - discount or flat fee real estate companies actually average anywhere from 5% to 10% (depending on where you are in the country) LESS on negotiated sales prices than full fee companies. Even if a seller lists a home with a full fee company for 7%, on average they would actually net from 3% to 8% MORE!!

Why is this?

Number one: because the seller who goes with a flat fee/discount company has no one negotiating on their behalf. As agents we all know that the longer a home sits on the market, the less the seller is actually liable to get for it in the long run. Typically sellers that list with a flat fee/discount company start out "stubborn" and end up waiting long enough that they HAVE to sell the home quickly and end up taking less. They don't have anyone experienced to advise them on pricing or the merits of any offers that come in.

Number two: (and especially in this market where there are so many to choose from) Agents are IDEALLY supposed to show ANY listing that meets their clients requirements. But in reality if an agent has 100 homes they can show a client, but only time to show 15, they are going to show not only what they consider the "best" homes, but also the ones where they are not doing all the work. The agents know that if they show a discount/flat fee listing, they will actually end up handling both sides of the transaction - twice the work for half the pay. And on top of that there is also a certain hostility to the discount/flat fee broker in the first place who is downgrading the worth of what the agents do by offering a discount/flat fee in the first place.

Not that this is the "correct" thing to do according to our Code of Ethics. But realistically speaking, we all know this happens every day as overworked agents try to keep up with what needs to be done. That is why discount/flat fee listings don't get nearly as many showings as full fee brokerages do.

There are many smart, hard working people out there, who would do fine using a flat-fee agency who will put you on the MLS, to sell you house.

If you're one of those people who is knowledgeable about what your home is worth, and are wiling to handle all the aspects of the sale (making appointments, taking the calls, showing the property, advertising, sitting the open house, negotiating an incoming offer... you get the idea), then flat-fee MLS is a great option.

Most people haven't done the research required, and don't feel comfortable handling the showings, calls, negotiating and paperwork involved, and they hire a full-service agent/agency. Mark outlined well, many of the things that a full-service listing agent will do for you. Some do less, some do more (although Mark's list is pretty extensive.. .hard to imagine MUCH more... ). Only you can determine how much you feel comfortable handling for any potential savings you might gain.

Agents can usually get you more for your property because they negotiate for you, handle all the paperwork so that the deal actually closes, and market your property in the appropriate venues.

All of my colleagues have given you great answers. It comes down to using a professional for the job is always the best thing to do. A well qualified agent will be able to sell your house for the best price, in the shortest time frame. That is what our goal is. I am very familiarwith your area, so if you have any other questions, please contact me through my website.
Good Luck!

Sharon Kozinn

All these realtors gave great, detailed answers which I completely agree with. Each year, I list homes that owners previously tried to market either by themselves or by using a discount broker who had them sign the papers and then let the houses sit there. If you want a referral to an excellent realtor in your area who will work hard for you and make sure the deal moves through, give me a call and I will be happy to send them your way.

I can think of many reasons why you would want to hire a professional real estate agent, but I would like for you think about selling your home on your own. Have you ever needed to hire an attorney? Most of what professional do can be done by anyone, it just will not get done as quickly or as good! The same is true here! I would not want to defend myself in court or perform surgery on myself, just as much as I would hate to see my friends try to sell a home without a professional!

The last time I checked, for sale by owners got 16% less for a home then a professional agent got in the same area. The flat fee brokers last year got about 9% less for homes in equal areas! So if the commission is less than 9%, you are actually saving money as well. One in four homes sold without a professional involved ended up in some sort of litigation as well.

Now think about who will be looking at your home...without a professional. The truth is that most Real Estate agents will not show properties that they can not earn a fair wage on! If you try to sell on your own or use a flat fee broker, the agent who has the buyer will never appear because you are not willing to pay a fair price. So, my experience tells me that people that will be looking at your home are unqualified, tire kicking, time wasting people. Do you really want to deal with that? If not, I would call a strong listing agent today and get the home sold!

Sure you can do that.. You can list your home with realmart for $500 and they put it on the MLLS with your phone number and that is it. You advertise, you show your home, you try to get conntected to the mainstream. You must be availabe iwith 5 minutes notice.. usually does not work out.

Hire a good agent, one tht is listing and selling homes. The more listings an agent has, the more advertising and phone calls the office and agent get, which translates into showings of your home.
The agent / company should be able to produce very recent advertising, all the websites that they are on and magazines they are in.. That is why you hire an agent.. advertising and showing of your home.

Good Luck

Sandy
I realize that you believe by paying less commission you will net more, is that right?
If you are thinking of an MLS only listing, then you are paying a flat fee to the broker for listing, plus the selling office commission (for the buyer's agent), so how much are you really saving? a point or two?

More importantly, how much are you risking? I monitor the statistics of MLS only and Limited Service brokers in my service area. Listings fail to sell 30% more often, sell for 2.6% LOWER price compared to asking price, and take longer to sell. For these reasons alone I would suggest interviewing a couple of Realtors, then YOU make the decision after comparing what they offer versus how much you will net.

Hi Sandy,
All these great answers cover the postive reasons to list with a full service company while you are trying to sell your home. All make sense, all should be considered. Never forget that your home is your biggest investment, a good full service company will do their best to get you the highest price they can for your home, with the least amount of stress and worry, in the shortest amount of time.

In many cases, agents should get more for their services especially when the real estate market is experiencing a slower period, homes take longer to sell and inventory is high. There's an old saying "Pennywise and Dollar foolish" keep that in mind when you list your home to sell. Most of the time you will get what you pay for.

Best of Luck in whatever you do. Lucy

Depending on your area there are thousands of agents that will be working with their buyers to sell your home -instead of 1 person. THe prefessional exposure and syndication sites that Realtors have Access to can not be beat. A full services listing agent handles everything. I can go over that Give me a call when you have a chance.... I know the Ridgewood market-I've seen the homes and know the different sections that make all the difference in price...

WOW...THAT WAS A GREAT ANSWER MARC. AND I FULLY AGREE. I LOVE THE SITE YOU PROVIDED FOR THE INQUIRING BUYER ALSO. THE PICTURES OF THE HOME WERE TOP NOTCH AND THE PICTURES OF THE DEER JUST MADE ME WANT TO LIVE THERE!!
TO THE BUYER: ANY GOOD LISTING AGENT SHOULD DO ALL OF THOSE THINGS IN MARC'S ANSWER AT A MINIMUM. AND EACH AGENT WILL BRING ANY OTHER "PERSONAL" PLUS'S THAT THEY PROVIDE TO THEIR CLIENTS. WISH YOU WELL!! IT REALLY IS WORTH EVERY PENNY OF A COMMISSION PAID IF THE AGENT IS DOING THEIR JOB PROPERLY FOR YOU.

Hi Sandy,

I'll assume for sake of illustration that I'm your listing agent. Every agent has a different program. Here are a few of my highlights:

The listing agent handles the entire transaction from beginning to end, and helps you with the many difficulties that develop along the way.

Prior to marketing, your listing agent will help you arrive at a price that will give you the best chance to sell your home in a timely fashion. This is of amplified importance right now.

Your listing agent will hire a professional stager to evaluate the appearence of your home and make suggestions on how to make it appeal to the widest possible audience.

Your listing agent will design a website for your home that will contain photography, video, documentation, floor plans, virtual tours, etc. Something like this: http://www.127river.com

Your listing agent will help you meet your legal obligations in disclosing certain facts as required by law. To accomplish this, your listing agent will help you complete the long and involved seller's disclosure statement.

Your listing agent will advertise your house in the local print media. Over and over for as long as it takes.

Your listing agent will market your home to the local agent community.

Your agent will place your home on television on Optimum Homes channel 606. Buyers can search on TV for their next home. Your home will come up in their searches.

Your listing agent will advertise your home in the New York Times to attract regional buyers.

Your listing agent will place your home on hundreds of Internet sites to attract buyers from across the country, especially transferees involved in corporate relocations. Your listing agent will make sure your homes STAY on these sites, because they are prone to disappearing. 80% of the public finds their home on the Internet, so comprehensive Internet exposure is extremely important.

Your listing agent will give you feedback from all your showings so you know what needs immediate attention.

Your listing agent will place a computerized lockbox on your home so all showings will be managed and followed-up. Homes with easy access and a lockbox will get shown before your home. Homes that require an appointment with the homeowner usually get shown last. You really want to be shown first.

Your listing agent will prepare first-class marketing materials to hand out to potential buyers who visit your home.

Your listing agent will mail out "Just-Listed" cards to everyone in the neighborhood.

Your listing agent will schedule, advertise, and staff open houses to attract buyers from the area.

Your listing agent will write compelling ad copy and photograph your home using state of the art camera equipment to make your home look as big and bright as it possibly can.

Your house is in competition with many others. Your listing agent's job is to make sure your home looks better than others in its value range.

Your listing agent will place a yard sign on your property with night lighting and sign riders that reference
your house website.

Your listing agent will handle the difficult issues that arise following the home inspection when your buyer decides they want you to rebuild the house for them.

Your listing agent will handle your buyer's appraiser and make sure he is supplied with adequate comparable data to enable him to appraise the home at or above the purchase price. Many appraisers come from outside the area and will need to be schooled.

Your listing agent will make sure you meet all the town guidelines with respect to fire and occupancy inspections so your closing does not end up falling apart because something was forgotten.

Your listing agent will make sure that the attorneys have everything they need on a timely basis so that the deal proceeds smoothly to closing. A thousand things can go wrong along the way. Your agent will act to minimize the chance of a glitch.

Your listing agent will keep everything organized and up to date. If you have a price change or add a feature, your listing agent will be responsible for making sure the hundreds of internet sites where your home is posted get updated immediately.

MLS exposure is just the beginning these days. The marketing effort of a professional agent far exceeds simple entry in the MLS and serves to expose your home to many more buyers so that the highest possible price is achieved. A professional listing agent is a problem solver. And trust me, there will be problems that need creative solutions.

There's more, but these are the basics

Sandy -

There was a previous thread talking about full service vs discount brokerages.
Hope this helps.

http://www.trulia.com/voices/Home_Buying/Redfin_v_full_servi…

Everything :)

Listing with flat fee mls is basicaly the same thing as being an fsbo, but with better marketing (agents will see it on mls and mls feeds data to a number of websites) you also won't get any solicitation from agents to hire them as listing agents, since you are "working" with an agent, even if they do nothing but spend 5 min to put your house into mls.

However, just like with fsbo, you are going to do everything else. Advertise (outside of mls) hold open houses, set up showing appointments with/for buyer's agents, do all the paperwork, negotiate and ensure that transaction is going the way it's supposed to and that everything is moving along.

Now, weather or not that is worth anything at all is up to you, some people can sell their house fsbo, some can't. Some people really shouldn't sell on their own (there was a thread earlier today here about a seller whose transaction went/going really bad, which most likely wouldn't happen if they had an agent to guide them through the process)