Selling A House - Full Service, Limited Service or Do It Yourself

By
Real Estate Agent with Jeff Fritzson Real Estate, Ebby Halliday Realtors 0629874

In hot markets such as Frisco Texas or San Jose California, many sellers are thinking that it may be OK to try and sell it themselves or just work with a broker who will provide MLS access for a flat fee such as a limited service broker. Many sellers regardless of the market also try to save money thinking that the big costs are the broker commissions. However, there is more to real estate than commissions.

Costs To Sell YourHome
A good rule of thumb is that it costs the average homeowner about 7-9% of the sales price to sell their home when working with a full service broker. I like to use 8% as a good ball park figure. SInce there are no fixed commissions it will vary. Out of those costs about 1.5% to 2% are fairly fixed title, and other fees that the seller will be responsible for in order to legally sell their home.

Using my suggested number of 8% and 2 % that would mean that a good average number to use for a full service broker fee to be about 6%. This fee is often split between the listing (seller's) broker and the buying broker. If you use a limited service broker you will usually pay the buyer's agent percentage, in this case 3%, and then either a flat fee or an additional percentage. If you sell on your own you will also most likely have to work with a buyer's agent who wil request their percentage or if you are "lucky' find a buyer who is unrepresented.

Listing Options
With a full service broker, you get exactly that—full service. That includes multiple levels of first class marketing, assistance throughout each step of the selling process which will also reduce your risk of litigation as well as a higher level of security.

The biggest "benefit" you receive from a limited service listing is access to the MLS. In Texas they are also supposed to handle all communications as the broker is not supposed to refer buying agents/brokers to speak directly to the principal. Often times this is not done. You can see in the MLS listings that the broker refers all communication to the principal.

When you sell it by yourself, you will either have to pay the buyer's agent or drastically reduce your buyer potential pool. Representing yourself may save on what you pay out but you will also not get as much from your home.

Find Out More
You can find out more details about each of these offerings and the details that support these numbers by looking at this post. Either way you decide to go, if you are selling a home in the north DFW\Frisco Texas area, please call me as a resource or even better to help you sell your home. Find out what my other clients already know—Your Success is My Focus.

 

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Topic:
Home Selling
Location:
Texas Collin County Frisco
Groups:
Active Rain Newbies
Realtors®
Real Estate Rookie
Frisco Texas Real Estate
Bananatude
Tags:
home selling
limited service
full service
frisco tx
fsbo

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Rainmaker
2,765,439
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Jeff, The basics will almost always apply in any City or Town in any State.  Full service will cost more and typically nets a seller more as well. We typically get what we pay for.

Jul 28, 2014 09:41 AM #1
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Thank you for taking the time to read and comment. Your opinion is greatly respected.

Jul 28, 2014 10:39 AM #2
Rainmaker
2,233,227
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jeff. Hiring a professional to sell a home, no matter what market is a good investment. Unfortunately the do it yourselfers end up with less money in the long run, if they are able to sell at all.

Jul 28, 2014 07:28 PM #3
Rainmaker
456,015
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

I love how you come from contribution telling those looking to sell their house in Frisco to call you as a resource. Some will try FSBO but will likely run back to you when it doesn't work out.

Jul 28, 2014 11:04 PM #4
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hello Joe and Shannon - it is always great to hear from both of you. I relly like the investment thought process you brought to the table Joe. Shannon thank you for your very kind words. If I can help someone sell their home on their own I say good for them. They will see that it is a lot of owork and if they tell others about me as a resource, some may stil be needing my professional services in addition to the resources I can provde.

 

Thank ou both for taking the time to read and comment.

Jul 29, 2014 12:18 AM #5
Rainmaker
1,284,671
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Jeff~ you tell it like it is my friend! FSBO's will most likely fail miserably on their own, and when they do they will need us more then ever...

Jul 29, 2014 01:54 AM #6
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

THank Jon - alwys great to read your blog and comments. Thank you for your kind words.

Jul 29, 2014 09:57 AM #7
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Rainer
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Jeff Fritzson: Frisco Real Estate Pro

Your Success is My Focus!
Your success is all that matters. Contact me.
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