ok first Chris ... you may want to edit your blog before your wife reads it "You know what, she was right !!!! "  you might never live that one down.

second thank goodness it is not a one size fits all business .. how would the great one stand out .

" I have no quarrel with those agents that charge less for their services as they know best what their service is worth" This is a quote directly from my local newspaper a couple of weeks ago in an ad run by a competior of mine who incidentially is a friend of mine. As you can tell my town also has the discount fee. I think in your situation you should definitely be kind and polite but decline the offer to work for less as you know this will be a high maintenance seller. In the future the property might not sell with another broker and the seller will turn to you to sell it, now you are more in the drivers seat. Pass on this one, you know best what your service is worth.

I feel like you get what you pay for in life!  I personally do not like doing flat fee listings.  You do not go to the post office and ask for a discount on stamps.  You do not ask your doctor to give you 15% off the price as he is sawing into your chest.  You definitely do NOT ask your gynocologist for a discount...EVER!  So why a Realtor?

Tracey :)

www.360realtygreensboro.com

We have a broker here in GA that charges an upfront flat fee. . and then you pay as you need ..

need a flyer ... pay

need more mls photos -pay

need an open house - pay

need a visual tour ....yep you got it ...pay

So the question is when the property does not sell / expires do you get a refund ?

I recently went on a listing appt where the seller was about to cancel her listing after only 20 days with her flat fee broker.  She had interviewed 4 agents and decided on her.  I asked her how many she was interviewing this round, and she told me 4... she chose another discount brokerage, and she wonders why her house is still on the market when she needed to sell months ago... I have no empathy for sellers who have no clue.

If I thought I could make money with a listing I would do it. I would explain that many agents may not show it if the commission was too low. There would be a good chance that it would stay on the market longer. I would make sure it was priced correctly in any case. I am in this business to make money so it depends up the return. Its the numbers. 

Thanks for some of the comments.  I think it brings the quality of our industry down.   While these properties are on the market, I see that most of the showings go directly through the seller and much of the negotiation goes through the seller.  I told the seller that many buyer agents may not want to deal with some of the nuances and might not even show the property.  She came back at me and explanied to me how they had to ethically : ) - you guys are right.  Some sellers have no clue.  Many times these listings get relisted with a professional realtor or as someone else just put it, relisted with another discount broker.  It seems as if the flat fee is a fallacy.  How can a broker get a license to list properties on the MLS and basically do nothing ?  It seems unjustified and brings down the quality of our profession.

Flat fee brokers are a big part of the competition here. They all advertize how easy it is to sell a home and just happen to forget to mention things like security, pre approval, showing, other marketing than MLS, etc. Or even the "cooperating agent" commission (or they state you can negotiate that part, true, but not much incentive to a buyers agent)

For some, who use the  $500 - $1000 discount broker, they haven't lost much.  I feel more sad for the one's that pay $3000 - $4000 up front and get the same limited service.

Flat fee brokers are really for FSBO's who want to get on the MLS. The Seller still does all the work and still does all the promotion, advertising etc.  I understand people are trying to save money but I wonder if they really know what they are getting or rather not getting when they sign with these brokers.  Good luck.  Veronica

There is an old saying "You get what you pay for".  There will always be those who want to pay less than the normal.  They often do not realiae  that in order to get the best price you need more buyers to come through. By limiting the exposure to their home, they could be actually losing more money than they supposedly save. 

High maintenance seller at a discount price.  Hmmm.  If I was your wife I probably would have smacked you upside the head.  :) 

Just kidding.  It's easy to get caught up in back and forth communications but we should never lose sight of the value (whatever that may be) in the services we provide.

There are some great comments on here.   My wife Stephanie is always right !!!  : )   She is getting a kick out of the comments here.   The bottom line is, as professionals, we bring tremendous value to the table.

First of all, you cannot mention any commission dollar percentage because you are then in vilolation of Federal Anti-Trust Laws.  But no I would not be interested.  We recently had a seller for a multi-million dollar ask us to list this way.  We told him no.

First- Always listen to your wife!  She sounds like a savvy lady.

The problem with sellers wanting a flat fee broker is they also want a full service agent yet get disappointed when you don't bend over backwards.  I used to discount my fees when starting my career in real estate.  Now that I know better I 'do' better.  If someone is going to consider being a 'flat fee' agent I suggest their duties be in outlined in the contract of what they are actually 'going' to do. 

My husbands company has a flat fee service as part of his service but so far has not had to use it.  Sellers get sold on the service.

Does this suggest that making your fee $10% will sell a property faster and at asking price?

Just curious.  Seems so many Realtors hang in the 6% number with small percentage in the 7% level.  I like to hear the various responses from Realtors on the magic 6% whether it be a 100K house or a $400k house......

Are none in the industry (or on Active Rain) worth 10% ....... or more... or are you 'all' equal?

OK, I can't resist any longer...  Someone remind Mr. Robinson about anti trust laws, and I am wondering if he is packing his bag for jail.  Never talk numbers, when it relates to commissions amongst your peers.  Never.  Especially putting them down in Black and white, where anyone can read them.

Personally, my only discounts go to multiple transactions with the same party.  Like selling their property, and then helping them purchase another.  Or multiple referrals within the same family, or group of people.  I work it like this...  I give a % discount off the first transaction, and apply it to closing on the second.  That way, they often feel compelled to use me to purchase, but not obligated.  

It seems to work for many clients...  at least they seem to be smiling at the end still.   That way it stays a win/win for everyone.

Eliza

I'm a Title Guy that's just curious.  I can most certainly make a statement about my observations of Realtors in general.

So.... Hypothetically........ are all Realtors equal?  If not - why do the vast majority charge the SAME X percent?

Note: I'm not the one that first used a percentage number in here either :^)

 "I was a little perplexed about the question but I did indicate that I could do a flat fee.  It would just need to be in-line with a 5 to 6 percent commission. "

Let them go. Not worth the time. Definitely not worth the stress.

Rob,  You will probably get a satisfactory response if you sit behind closed doors of a local broker that you trust and respect.  We really can not discuss any details of why.

But, do remember that all agents are independent contractors, and like on all sales careers, some are better at their chosen profession than others.  Some climb to the top of the success and ethics ladder where others just look for the quick buck and cut whatever corner possible.  There is a phrase used, but I can't think of it at the moment. Yes, I did...   "Turn them and burn them".  There are these type of people everywhere, and they just don't get "it".  Honor is everything in a service industry.  The minute one person misuses that trust from the consumer, all of us suffer from generalities that we are all crooked, and are untrustworthy, and are nothing but sharks.  

I have worked long and hard at currently being able to say that I have never mistreated a client, in any way, and truly believe that what goes around, comes around.  If you do bad things, bad things will come back to bite you.    

Now, enough of the soapbox...  I got to pull beer this weekend as a volunteer at our local 1st "Rails to Ales" Beerfest here in Upper Kittitas County.  It was a huge success!  20 microbreweries at the newly remodeled South Cle Elum Milwaulkie (sp) Train Depot.   2 bands outside, 85 degrees, and 1500 people eating and drinking beer.  Woohoo!  Next year is already in the planning stages!

I am glad that this thread has lead to an interesting discussion.  There are so many sellers out there that want full service (and more) for a discounted price.   I think once agents start to discount the commissions it forces the better agents to begin to lower theirs as well. 

I still have received a couple of emails from "Ms Seller" that she still has not chosen an agent as of yet : ) .  More to come I presume...

On a side note, I just got off the phone with another seller who has 9 properties on the market (all way too high !) who is soliciting my business.  When I called him back he asked why I did not call him back sooner (his call was returned within 24 hours).  Well, if he was a client or a seller who was not shopping already active listings around, I probably would have called him back earlier.  Needless to say, I have seen one of these listings already go through 3 or 4 listing agents and it is still $75K too high.  Another very demaning individual... I bet he would have wanted a discount too !  LOL

I would lose her too. She is trying to get it all for free and you need to stick to your guns which it sounds like you are. Good luck.

My wife Stephanie is enjoying this thread !!!  Two morals:  (1) dont undercut your commission with demanding sellers  (2) always listen to your wife !! : )

If they go to a discount broker - they get discount service and marketing....period....the end....good luck to them in the selling of their condo and stick to your commission plan as I am sure that you are worth it!

Appreciate the comments - have not heard from the discount seller who wants full service in the last week or so.  When I do, will report back !  There will probably be many more of these types of stories as well as I hear about them a lot.  I would like to hear from flat-fee MLS agents to hear their opinion as well.

After back and forth emails with the seller, the seller has approached me with a flat fee proposal that is realistic and seems worth the time in terms of percentage of the sales price and some funds upfront for marketing and advertising - similar to a system that I saw that Jennifer Allan has in place.

Yes we get that sometimes down here too.  I basically explain what the difference between a flat fee listing and full service is and if they insist on the flat fee then I do as your wife suggested and just wish them good luck and move on to the next prospect.  If it doesn't fit in my business plan then I don't do it.

1. We are not all equal. Do you seriously think a new agent with 3 months experience is "worth" the same as a professional with 10 year or more of experience? Like any profession, some are better than others.

2. Commissions are negotiable. Period. You can ask for whatever you want--any percentage, or a fixed dollar amount.

3. We do not have a God-given inherent right to ANY AMOUNT. Your broker tells you what he/she fixes as the price, or you do in some offices. If the seller won't pay it, move on.

4. Some sellers do not understand that they truly are getting less representation/less services. But many do! And if they agree to take less for a smaller fee, then God bless them. If the house doesn't sell, they'll call you (hopefully).

5. I have a certain percentage I ask for. Will I negotiate? Yes. For repeat customers, in very special circumstances (some hardship cases), and if the seller agrees to GIVE UP certain costly marketing expenses. 90% of my sellers accept my asking price. The ones who haggle, get a reduction only if they accept less service/marketing/representation from me.

This is a business. Treat it like a business. If a certain dollar amount makes sense for you to take the client (even if it's not the amount you'd LIKE in an ideal world), I say do it. Only you + your broker can make that decision.

Christopher & Stephanie.

Very good post and though we have to deal with this on a regular basis. I still think that in the end you may have to just let it go and move on to clientele that have a better grasp of business and a realistic attitude. It will save you a lot of time and unnecessary stress!

You are also correct when you say that the hesitant seller will return so it's good to be firm and stay with those who understand the value of your service (and hard work)!