Flat fee MLS listings? (Georgetown, Howe: sale, real estate, lawyer)

[backtomass]

Any pros and cons in this particular neck of the woods?

While we have always used the services of Realtors in our many moves, including buying a beautiful, expensive house here in the spring. However, things are not working out with the new job, and we need to get out from under.

I'm aware of the valuable services Realtors provide -- pricing assistance, negotiating skills, marketing, the MLS, showings, open houses, and so forth. However, since this house was sold (to us) in the spring, and appraised easily for what we paid for it, and we were educated on the "who pays for what" aspects of the transaction during the process, plus already having had a meticulous inspection completed and fixed everything that was found, we're thinking that we already have quite a bit of what we need to know to price the house and get through the sale process. And, at this price point, the 3 percent additional commission we would otherwise pay is a significant amount of money.

In addition, my spouse works from home and is a professional art director, and is perfectly capable of staging and shooting the house, creating a great website and brochures, posting it on CL, fielding calls, emails and showings. The flat fee listing gets it on the MLS and in realtor.com and various other places. I would add that it would not be the first time we've sold a property on our own, although never in Texas. So, we're not necessarily the blundering first-time FSBOs that drive everyone crazy and blow up the deal.

I've heard of agents in certain markets shunning the flat fee listings, is that the case here? I would think in this climate, any listing at all that can be shown to a potential buyer is an attractive thing.

Anything I'm missing here? We absolutely love the house we bought, and we really like living here, but the job's just not working out and it's not the kind of field where you can just go to another position locally.

[Dr.Mom]

Just curious - where is your home located?

[backtomass]

Originally Posted by Dr.Mom

Just curious - where is your home located?

We're in Georgetown.

[sinking]

I can't help you but I am guessing you are moving back to Massachusetts. I look forward to making the same return, or at least to somewhere in New England.

[ROY DUBOSE]

from my experience, the "flat fee" is often paid upfront to the listing agent and the seller still is required to kick-in 3% (or a negotiated percentage) for the buyer's agent --

[hound 109]

Well written first post.

I used a flat fee listing agent last year for the reasons you gave. I knew going into it that the realtor who is the majority lister & buyers agent in our neighborhood would "shun" our home & she did. I figured it was a numbers game & i didn't mind losing the 30-40% of folks who never saw our home.

A couple of dozen other realtors showed our home & it sold in 3 mos....& i had passed on many low ball offers & was willing to wait longer if needed. Like you, I didn't see the need to pay a listing agent (in my case) 12K for an MLS. I did pay the buyers agent the customary 3% though.

I liked the flat fee agent (& the services provided) & I would do it again....unless i lived in a neighborhood where ONE agent has a monopoly.

[backtomass]

Originally Posted by ROY DUBOSE

from my experience, the "flat fee" is often paid upfront to the listing agent and the seller still is required to kick-in 3% (or a negotiated percentage) for the buyer's agent --

That's correct ... it's anywhere from $250-500 to the listing agent, basically for just putting the description you write and the photos you provide into the MLS, and then you pay the 3 percent commission to the buyer's agent.

So, the buyer's agent is still compensated for the effort they are putting forward, as they should be, and we would just forgo the services of a Realtor on our end of things.

I understand why it's not popular with agents, particularly those who specialize in listing properties, but it's hard to fathom why a buyer's agent would shun a potential sale for their clients. On the other hand, almost anyone who is looking for a house today is going to be doing their own searches on realtor.com and various other sites, and it must be an interesting conversation if their buyer's agent won't show them the listing they liked online.

[ROY DUBOSE]

Originally Posted by backtomass

That's correct ... it's anywhere from $250-500 to the listing agent, basically for just putting the description you write and the photos you provide into the MLS, and then you pay the 3 percent commission to the buyer's agent.

So, the buyer's agent is still compensated for the effort they are putting forward, as they should be, and we would just forgo the services of a Realtor on our end of things.

I understand why it's not popular with agents, particularly those who specialize in listing properties, but it's hard to fathom why a buyer's agent would shun a potential sale for their clients. On the other hand, almost anyone who is looking for a house today is going to be doing their own searches on realtor.com and various other sites, and it must be an interesting conversation if their buyer's agent won't show them the listing they liked online.

from a buyer's agent side, when i see directions that offers go directly to owner i think "oh boy, i'm gonna end up doing the work on both sides and getting paid for one" -- too often, a seller believes they know more (probably not the case here) about the business than an experienced agent and the negotiations tend get combative pretty fast -- an agent has a responsibility to make the deal happen once an offer (of any kind) is made and setting reasonable expectations with the client and then managing those expectations through the process which does take some diplomactic skill -- also, there are deadlines in a contract that the agent monitors to insure both parties are in compliance with the terms and conditions of the contract -- knowing "what happens if" those terms aren't met is important as well -- if you move down this road do the listing agent a favor and insist he's covered from any liability should the transaction go south --

[Exiled Texan]

Originally Posted by ROY DUBOSE

from a buyer's agent side, when i see directions that offers go directly to owner i think "oh boy, i'm gonna end up doing the work on both sides and getting paid for one" -- too often, a seller believes they know more (probably not the case here) about the business than an experienced agent and the negotiations tend get combative pretty fast -- an agent has a responsibility to make the deal happen once an offer (of any kind) is made and setting reasonable expectations with the client and then managing those expectations through the process which does take some diplomactic skill -- also, there are deadlines in a contract that the agent monitors to insure both parties are in compliance with the terms and conditions of the contract -- knowing "what happens if" those terms aren't met is important as well -- if you move down this road do the listing agent a favor and insist he's covered from any liability should the transaction go south --

The OP sounds very sophisticated, reasonable and educated. Just like me. lol

I've FSBO and bought without an agent (TWICE)! It's not rocket science. A good real estate lawyer can tell you all the relevant deadlines in 10 minutes and explain the legalese in standard forms that are available publically online. I've found the closing agent for the title company does most of the work anyway.

Good luck OP!

[BichonGirl]

Its a Buyers Market presently and not the best time for a Seller discount services and marketing in this marketplace.