Flat Fee or Normal Commission Fee, That Is The Question
I have been in the real estate field for many years on and off, lately all on and not off. Commission fees have fluctuated according to the economy but in the last ten years somewhat steady. When I first began in the early 70's we asked for red M&Ms and no one ever questioned that, it was normal, and since, fees have changed over the years as the economy changed.
It seems to me this is not discussed a lot, at least I have not seen the conversations, and I have heard the cliches that say Realtor's make too much money for what they do and the seller pays too much to sell their property. I do agree that there are circumstances that might warrant the listing agent to take a lessor commission so that the seller will be able to sell his property and not come out with a deficiency but at least even, which might save them from a short sale position.
I do not know much about "Flat Fee" companies except what I have been able to research on the Internet (and we all know the Internet never lies), but what I have found out is this. Flat fee companies charge a certain (lower) fee up front and a small percentage at the closing of the transaction, some charge singular fees and some have different choices or packages. One that I looked at had
1. Full Service
2. Flat Fee MLS
3. Flat Fee MLS + Broker Assistant
Some say that they will be there for you just in case, and I hope they are, some provide the forms needed if seller sells property himself, but what I do see and understand is the responsibility of selling the house with all that goes with it, is totally on the seller to do it all. Open houses, advertising if any, interacting with potential buyers, negotiating, figuring out if they are qualified if not represented by an agent, dealing with the title company and making sure all goes as smoothly as possible. As sellers representing themselves, they need to be there to show the house and let people in as some agents do not provide a lockbox for the other agents. It does take away from the seller's busy schedules.
I am not saying paying Flat Rate Commissions is a bad thing, just something I personally am not used to and for some sellers it may be the way to go, if they have had experience or the time, or are just willing to give it a try. Bottom line is they are trying to save costs.
As a Realtor, and like other Realtors I know, I go above, beyond and to the end of any real estate transaction. I am involved in protecting either the seller or the buyer from whatever lurks out there, so that in the end both parties get what they are looking for, a SOLD HOME or a NEW HOME.
I hope the consumer that either wants to sell their home or buy a new home realizes and can understand that REAL ESTATE AGENTS/REALTORS who do not do flat rate commission fees are there to service them and not take advantage, but to protect them and make sure they are all treated ethically and fairly, making sure their transaction goes as smoothly as possible for the best possible outcome.
Flat Fee or Normal Commission Fee, That Is The Question
