Flat Fee Vs Full-Service
The following are common questions that the traditional agents propose to Flat Fee customers.
Statement: A consumer will not be able to sell their house using a Flat Fee service?
This is a False Statement. In my experience and as with many others using a Flat Fee service is simple. The proper legal forms provided are simple and easy to complete and if there are questions the support of the agency is there to assist you. Whether it is flat fee or full-service, the home owner has to provide information to the listing agent, get the house ready to sell, decide the bottom line, and keep the house clean. Flat Fee selling is not for everyone and but the money saving incentive is what this is all about.
A Real Estate Agent charging full commission will get a higher price for your house.
This is a False Statement. The Multiple Listing Service (MLS). sells your home not your agent and a property priced to reflect the current market and comparables will sell.
The full service agent can get a higher price in the negotiation process with a prospective buyer.
This is a False Statement. In a commission-based sale, the faster the agent sells a house the faster they get their money. If they sell a house for $15,000 less than market value, you lose $15,000 and they only lose 3% of the $15,000.
Full service agents boycott showing "all" houses that are for sale by flat fee MLS companies.
This is a False Statement. This is completely illegal and this agent can have a complaint filed against him/her with the local real estate commissioner. In today's market most buyer's are internet savy and review the house before they get to their agent. In other words, the agent cannot say 'NO' I will not show you the house.
The full-service agent states: "I have a prospective buyer for your house if you let me list it."
Response: The seller never needs to sign an 'Exclusive Right To Sell' contract. If an agent has a buyer, they should be willing to negotiate a deal outside of listing your home.