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Flat Rate Listing Agents - Tell Us More About Your Business Model

By
Real Estate Agent with Benchmark Realty LLC, Nashville TN 615.516.5233 TN 221117

Our Tennessean newspaper did a story last weekend on home sellers who say they have saved thousands of dollars by using a flat rate listing fee broker. 

I am not against saving money. In fact, I try home remedies before I go to the doctor, unless it is a serious situation.  I will sometimes try to do minor home repairs before I call in a professional. 

One question I had, however, while reading the article, was how much more could the sellers have gotten for their property if the home had been competing on the open market. Could they have netted more?

But to defend my full service business model is not the purpose of this blog.

If you are a flat rate listing broker, I just wonder about the business model. One reason I have never gone to that model (although I am flexible on commissions depending on the situation), is that I can't imagine taking the listing and just dropping out of the picture. I can't imagine the sellers, and buyer's agents, letting me do that.  Do the sellers really do it all on their own? If you get calls wanting additional information and help, do you just refer to the seller? Do you EVER help with negotiations if things get sticky between seller and buyer?

Checking today, one flat rate listing broker here has 44 active listings.  If they service all these, I wonder how they do it. If they don't service them, and truly let the seller and buyer's agent do most of the work, then how do they train them NOT to call?  

Sarah Rummage
www.NashvilleRTeam.com 

 

Posted by

*********************
Sarah Rummage, Realtor®

Sarah Direct: 615-516-5233
Sarah@HouseInNashville.com


2500 - 21st Avenue South, Suite 102
Nashville TN 37212
Office: 615.432.2919

www.HouseInNashville.com 




 Email me if you are thinking of selling and I will gladly provide a seller net sheet at no cost or obligation to you. 


Comments(7)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

I think clients get what the pay for (very little) on the flat rate realtors.  You don't get something for nothing....

Jul 11, 2012 12:01 AM
Walter Sadowski NYS Licensed Associate Real Estate Broker
Cafe Realty - Somers, NY
The Real Estate Resource

Wow what a question... I'd be curious to hear some responses as well regarding this practice. Thanks for initiating the convo.

Jul 11, 2012 12:03 AM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Sure that some do a decent job listing the home and placing it on a lockbox but the service likely stops there. Sellers believe they are saving money but are more than likely not in the end.

Jul 11, 2012 12:14 AM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtor® in the Nashville TN Area!

Thanks, Edward, Walter and David. I would sincerely like to hear how the business model works. Not that I plan to put in practice. I just can't imagine extracting myself from the questions and problems that come up throughout the listing and contract stages. 

Sarah

Jul 11, 2012 05:20 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Sarah, the way I understand it is that this flat-rate broker, in many cases, just puts the listing in the MLS... and from then on, for the seller it is similar to being For Sale By Owner. 

And... if the "listing broker" is totally disclosing everything, and the owner/seller still wants that type of "service, or lack thereof"... it is still the seller's right to choose that.  Just as long as they are fully aware of what they are getting into.

Jul 24, 2012 01:51 AM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtor® in the Nashville TN Area!

Hi, Karen. My real question is how the listing broker totally extracts themselves from the transactions.  I start getting calls the minute a listing 'hits the airwaves,' with questions about condition, parcel size...you name it. Do these listing agents just say, 'Sorry. This is a limited service listing. Call the seller?'  I just can't see myself just totally ignoring the calls and not helping.  I don't feel the parties would LET me do that.  I just wondered how the limited listing agents set boundaries and NOT help.

Sarah in Nashville

Jul 24, 2012 02:12 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Basically, Sarah... I am guessing it is quite like calling a FSBO.  The seller contracted with the flat-rate... or I prefer the limited-services broker for that type of listing.

And for any calls from other brokers... they would have no problem doing "all the work" if they sold a FSBO... so why would they have any problems with selling a "listing" like this?

There are many FSBOs who advertise they will pay 3%... or some other fee, to a broker who brings them a buyer.  Basically, as long as there is FULL disclosure between the listing broker and the seller... there should be no problem.

What your comment tells me is that your taking this kind of listing... is just not your "cup of tea..." and that is fine.

Jul 24, 2012 05:34 AM