MLS Flat Fee Broker for my FSBO Questions... (foreclosures, 2%, clause)
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Hi Everyone, our home has been on the market for about one month. We have it listed on Craigslist, FSBOlocal, and owners.com. We have the standard yard/directional signs. We have a current contract on the home but it is based on the buyer selling her home. The contract includes a 2% commission to the buyer's agent, although she did ZERO work and hasn't even seen the house. She has had ZERO showings or calls, so we are not exactly optimistic on her selling her home. Our attorney did make sure that we right in a clause that if we are to get another offer, she would then have 48 hours to complete the sale or back out. We are obviously actively seeking another buyer.
I have researched and been approached by some brokers that offer flat fee MLS listings. For $250, I can get on the local MLS and realtor.com. We are trying to figure out which is best to offer the agent/prospective buyer. We expect the purchase price to be $150-$155. Our current contract is for $156 and the 2%. Do you think it would be better to offer 2.5% or 2% and a $500 Buyers Agent Bonus?
Also, the Flat Fee MLS Broker says that they have to use their yard sign in my yard and they get all the calls on the listing and let me know when someone is coming to look at the house so i can leave. I don't like the idea of not remaining the contact on the house. Do you know if this is a tactic or if this is normal?
...Also, the Flat Fee MLS Broker says that they have to use their yard sign in my yard and they get all the calls on the listing and let me know when someone is coming to look at the house so i can leave. I don't like the idea of not remaining the contact on the house. Do you know if this is a tactic or if this is normal?
Thank you for your help!
It is likely a requirement of their MLS and/or State. Brokers must follow strict requirements on advertising and client services. In our state, it would be OK to indicate in the MLS listing that all showing requests be handled with the seller. You need to check requirements for your state.
Our state requires a yard sign with the listing brokerage. It's the law. I assume it is the law where you are too. Whether or not they handle showings depends on whether or not you are in a minimum service requirement state.
The sign question has been answered but as far as commission, you could offer something similar to the commission on the recently sold comparable homes you used to set the price of your home.
Last edited by Mark Brian; 03-24-2010 at 09:36 AM..
Reason: clarify
You are putting yourself at a disadvantage.
1. My first thought is that 30 days is hardly enough time to know where you are in the market. Of course everting varies by area but consider the average days on market.
2. We have all heard stories of the exceptions but signs don't sell much real estate - marketing sells real estate. Your marketing is very narrow. Before I was licensed, I sold a fe homes FSBO - it can be done - but you really need to budget for the marketing. EVERY day you must promote and market the property. Some advertising is free (and that's great) but you need to consider a budget. I always used 1-2% of my expected sale price.
3. Listing in the local MLS will help - but do understand that you will be the bottom of the barrel for agent showings. If you are only offering a 2% commission - you may only get a hand full of showings. There is so much inventory on today's market agents will shy away from a low commission - esp. since they will have to deal with the owner rather than a listing agent. You need to offer a commission higher than the norm.
4. People who like FSBOs, really like FSBOs. But most of the buyers in America don't want to work directly with the owner. It's not personal, it's just a fact. I've even had buyers who won't look at a home if the owner is present. It makes some buyers uncomfortable and they feel that can not critique the home frankly.
5. Price is king - we assume your home is correctly priced.
I don't want to be discouraging - just frank.
Best wishes!!
Thanks for your comments. This actually worked out nicely. I settled on a 2.7% buyer's agent commission. Paid the flat fee, got the yard sign, and we'll be on MLS and Realtor.com for 12 months. He handles all correspondence with other agents for our flat fee. It was actually $399 which I think it is worth. Thanks again for all your help!
I guess the person who received the money got them self a good deal...not you.
Why would they do anything more then collecting the fee...Just think about it...the brokerage gets the phone calls and has a lead of a person who is interested of buying a home, they easily can take the lead to use it to get another house sold and you would never know.
FSBO is either done completely by your self or you need to have a realtor...paying a flat fee is wasting your time and quick money in the pocket of the other person, forget about selling your home that way in todays market and competing with short sales and foreclosures.
JMO! I'm not a realtor and have sold homes with the use of a realtor (not that they did a really good job since I had to do most things my self, but they sold) and i always bought the homes without a realtor...I do not believe in FSBO the way you describe.
we sold our house using flat fee about 18 months ago-the real estated market was definetly on a down turn but not as low as it has been the past year-while we offered 2% for the first 4 weeks some showings-no real offers-then we bumped up our commission to 3%-more showing 2 offers within a week-we negotiated one and sold-coincidence or higher commission-who knows? but the couple we sold 2 had been working with the realtor for 2 months when they were taken to see our house which had been on mls for a month by the time they saw it- good luck-its not an easy time when selling but flat fee worked out for us and i will do it again-
Thanks for your comments. This actually worked out nicely. I settled on a 2.7% buyer's agent commission. Paid the flat fee, got the yard sign, and we'll be on MLS and Realtor.com for 12 months. He handles all correspondence with other agents for our flat fee. It was actually $399 which I think it is worth. Thanks again for all your help!
Aggie, the going commission in our area for a buyers agent is 3%, If you offer less then the other sellers your home is not shown near as much.
I let my clients determine if they want to see as lower commission home. I have a buyers rep agreement that discloses my fee of 3%. If they want to pay the difference they can choose to see the house, most choose to not pay.
When I have 50-100 homes to show them that costs them 0%, they usually elect to only see those.
So what I'm saying is the commission you offer would be wise to be competitive with the other sellers. This is something your flat fee person probably will not tell you.
BTW, Hook Em Horns
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