I spoke with a "flat fee" realitor...what is the catch with these guys?

Answer 1

The "catch" is that they get their flat fee up-front. So whether your home sells or it doesn't, they still get their money.

They offer very limited services, generally just putting your home in the MLS, making it available to other Realtors to show to their clients. You will have to pay a buyer's broker a fee if they sell your home, usually 3-4% of the sale price. The flat fee Realtor will represent you in the transaction.

Realtors are reluctant to show homes listed through a flat fee company because it's usually a hassle dealing with the sellers and listing companies. Those homes get shown last, if at all.

You are better going with a full service company that doesn't get paid until the home sells. They are more motivated and will work harder to sell your home. Good luck.

Answer 2

Read the fine print. The flat fee covers their side of the transaction (listing side), but a buyer with a Realtor will want the customary fee (2% - 3%) on top of the flat fee you agreed to with your listing company. You can, of course, add that amount to the price you want the buyer to pay or ask the buyer to pay it directly, but in most cases the seller ends up footing the bill. When you get an offer, they will give you a detailed list of all the costs and you will see what your NET proceeds will be. This is how you compare offers (hopefully you get more than one!)

Answer 3

There should not be a catch. It's just limited service. Depending on the company, you might get a standard service or pick your options, like having your home on the MLS or signs, or representation, etc for a certain price not percentage.

Obviously the x-Realtor above me was not very good and therefore is an x-Realtor. Good Realtors do "market" your home and try to get it sold. Remember, if you use a Realtor and not a limited service agency (flat fee) you should expect to get great service. If not, simply terminate with them and go with someone else. If you go with a tradition Realtor they do not get paid until your home is sold so it is in their best interest to sell your home fast and for top dollar. Apart from that, think liability. If anything goes wrong your Realtor will be pointed a finger at. Go on your own or with limited service and that finger gets pointed to you.

Nonetheless, I wish you luck whether you go FSBO, flat-fee, or traditional Realtor method!

http://www.exityourhome.com

Answer 4

They charge everyone the same fee, and offer limited services. Usually all they provide is a sign in your yard, and put your property on the mls. They usually don't do any advertising for you, so if you want any advertising or open houses you would have to take care of that yourself. You really don't save much money, because you have to offer a co-broke to another agent if they find a seller for you. In my area, an agent will ask for 3-3.5% of the final sales price. Plus, they usually are just some rinky dink company that isn't widely known.

Answer 5

Flat Fee Realtor- usually a flat fee
Realtor will only provide you with limited services and charge additional fees for "enhanced" services and may charge you to list your property MLS. They may or may not pay much attention to you

Answer 6

All they do is typically put your property on the MLS and put a sign in the yard, and they typically charge an upfront fee of $3000 to $5000, regardless of performance. They don't market your property and they usually don't even aid you in negotiations. They have zero stake in the price you get, or even whether it sells. For that reason, good buyer's agents love to find people like you represented by discounters and flat fee realtors. Our clients end up very happy. Nor do limited service providers have any fiduciary responsibility towards you. Many of them either have arrangements with real estate sharks, or are sharks themselves.

You pay less, yes. But you don't get anything worth having, either. Particularly in a buyer's market. In a red hot seller's market, there's a chance you'll do okay with them. In a buyer's market, like now for most of the country, you are better off paying full service. They get nothing unless the property sells. Furthermore, even with a discounter, you're going to want to offer a 3% commission to a buyer's broker. If someone isn't paying my buyer's agent commission, so that my client has to, I had better be able to justify it in court as to the bargain I got my client being better than anything comparable I could have gotten them - in other words, you've got to be below market by more than my commission. Before you get angry, you'd better consider that my fiduciary responsibility is to *my* client, not to you, and that they *will* get a better bargain with me than without me, even if they pocket 100% of any commission I would have earned.

Real estate is multiple hundreds of thousands of dollars with every transaction. Things like that attract sharks. You'd either be better to swim with them, or have someone to help you who can.

Answer 7

Usually there are several. You may have to pay up front regardless of whether the house sells or not. You will have to agree to pay the agent who brings the offer in addition to the flat fee. You may not get optimum advertising. You may have to pay extra to be put in the MLS, print advertising, open house, negotiations, etc. You get what you pay for. Read the listing agreement carefully.

Answer 8

Nothing, a regular realtor doesnt do much for you anyway.

In these days of the internet, a prospective buyer will find your crib, and arrange to see it with your realtor.

Any realtor that says they "market" your house if full of themself.

All the realtor does is fill in the blanks in the standard purchase agreement, and tell you to see their mortgage person, and their inspector, etc,

Answer 9

No catch, they are just trying to save their business- their commission used to be 6%, which was highway robbery... The internet has made it much better for you, and not so good for them. Many people buy/sell real estate themselves.

Answer 10

Don't do it.