My thoughts on a Triangle Area Flat Fee RE Service (days on market, for sale)

[North_Raleigh_Guy]

I admit it, I am one of those nosey neighbors who goes online to check on homes that go up for sale in my neighborhood so I can see how much they are asking. I like to keep tabs of the prices in my neighborhood and how long it takes for homes to sell. Things have gotten interesting lately because in my relatively small neighborhood there are now 3 homes for sale and the one next door to me will probably go on the market any day now. Anyway, one of the homes for sale has a sign in the yard from some place called “Carolina’s Choice Realty”. From what I gather, this is one of those flat fee agencies. I am not a RE Agent and I have nothing to gain from this, but I am here to tell you that from what I have seen in this case, Carolina’s Choice Realty is pretty lame if you are interested in actually selling your house. There has been a sign and an empty info tube in the yard for 2 weeks now. I drive by the house everyday and can clearly see that info tube has been empty since Day One. I tried to find the house on realtor.com but it doesn’t seem to be on the MLS even though it has been “for sale” for two weeks now. I even went to Carolina’s Choice own website and can’t even find the house on their very own site. From what I can tell, you are basically paying somebody $499 to put a for sale sign in the yard. Sounds like a great marketing strategy! I wonder how helpful they are should you be lucky enough to receive an actual offer.

[tsmithgolf2000]

Did the other 2 houses sell? Do you mind telling me your neighborhood so I can compare how the other 2 houses are being treated versus the flat fee company?

[gastric]

I can confirm it's not the case with every flat fee listing company. The Falls River house I purchased was listed by The Listing Company, Inc. which is a flat fee company to my knowledge and the property was in the MLS.

[tsmithgolf2000]

Well how did you find the house that you purchased from the flat fee company? Did you find it yourself? Did your agent bring it up to you?

[gastric]

It was in the MLS. Appeared online in my own searches and those that my Realtor did.

[prius109]

How do you know this isnt just an isolated incident? Could just be a screw up on the realtors fault, or maybe the realtor is trying to work something out with the seller before they list it online.

[grifter]

With a flat fee service, what kind of commission does the buying agent make?

[gastric]

My Realtor received the standard 2.4% which my understanding is required for any MLS listing.

[leighbhe]

Originally Posted by gastric

My Realtor received the standard 2.4% which my understanding is required for any MLS listing.

There is no standard commission, the seller of the home decides how much commission they are willing to give the agent that brings in a buyer. Although there seems to be a tendency to have a commission around the 2.4 mark, it is something that the home seller can decide.

Leigh

[MikeJaquish]

Originally Posted by binky

Moderator Cut: Real estate web site ad

Getting listed flat fee in the MLS just avoids a listing commission. There is plenty of info about this subject at Moderator Cut: Real estate web site.

Careful when choosing between full service and limited service (flat fee mls listing)

Top 10 questions to ask a full service agent before signing up:

1) Ask: How many listing the have within 10 miles of your property?
2) Ask: How many of those listings have sold the past 6 months?
3) Ask: What the average number of days on market (DOM) for those sold homes?
4) Ask: How many of those sold listings were sold by your company?
5) Ask: How many of those sold listings were sold by YOU? That’s the big one.
6) Ask: Do you answer their phone on Saturday?
7) Ask: Do you answer their phone very Sunday?
8) Ask: Are you present when another Realtor shows the home?
9) Ask: Why should I list with you if you aren’t going to be there when the house is shown?
10) Ask: What will you do to sell my house besides put a lock box on my door? (This will raise the feathers of most Realtors but needs to be asked).

Top 10 questions to ask a flat fee MLS company before signing up:

1) Ask: Is the phone answered on Sat and Sun?
2) Ask: How do I get buyer leads that come to you, the listing broker?
3) Ask: Do you use a third party broker to input listing in the MLS?
4) Ask: If so, can I have that broker’s name and number?
5) Ask: What does your yard sign say?
note: If it says anything about flat fee that is not good
6) Ask: If I make a listing change, who would I do that?
7) Ask: If I have an issue with my Realtor.com listing, who would help straighten that out?
8) Ask: If I have a question about a sales contract, will there be a broker to assist me and how much will that cost?
9) Ask: Will you receive offers in my behalf?
10) Ask: Do you have agents that will show my house on short notice if I am unable?


keith, co-owner AREN

I would not list with an agent who made it a rule to interfere with other agents' showings. That showing is the Buyers' time to speak openly with their agent, and the listing agent should not be present to eavesdrop.
The Listing Agent should not be present at showings unless there is an extending circumstance, health of a family member, or valuables in the home(which should be removed anyway.) That is the purpose of lockboxes, to afford the Buyer convenience and privacy.

DOM is such a misleading indicator that it is almost irrelevant currently. Until REALTOR ethics boards clean that mess up, getting hung up on DOM can be a waste of time.