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3 Comments on AgentGenius.com - Flat Rate is the Only Way to Fly by Jonathan Dalton
Changing the real estate fee from contingency fee paid on success to one of flat fee paid up front would require the change of the culture of real estate brokerage where the brokerage fee is paid from the proceeds of the negotiated sale.
I don't see it anywhere on the horizon. Appraisal, tax laws, etc. will have to change too and that could be a lot harder than changing folks habits.
It would take all of the real estate agents changing together to make this a success. I don't think it will make a lot of agents change anytime soon
In many states this "For buyers, we charge a professional services fee and then give it back doubled at closing so the customer is rewarded for their loyalty." is considered to be a ethics violation.
To my way of thinking it is paying buyers to work with you. not the way to build client loyalty, what will these same clients do if something changes and someone else offers to pay them more, they go to that someone else because these types of buyers are not considering the quality of the services you provide, only Money.