Flat Fee or normal commission fee - That is the Question

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Real Estate Agent with HomeTrust Real Estate, LLC, Homes for Everyone 780403182

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

 

 

 

 

 

 

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  2011, 2012 , 2014 and 2015 FIVE STAR REAL ESTATE AGENT
for OVERALL SATISFACTION

 

HomeTrust Real Estate, LLC  
Licensed in the State of Oregon           

 

Disclaimer - As an Independant Contractor of HomeTrust Real Estate, LLC, the views of my blog are my own and not of HomeTrust Real Estate, LLC

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Topic:
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Oregon Clackamas County
Groups:
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Bananatude
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Feather Nesters
Tags:
selling your home
flat fee commissions
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Rainer
209,943
Michael McGuffie
Regal Classic Homes - Windermere, FL
Custom Home Building, Additions & Remodeling

Well said, Mary! As a home builder that regularly pays real estate commissions, a professional Realtor earns every penny of their commission. 

Jul 03, 2015 07:03 AM #1
Rainer
255,449
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

Thank you Michael.  We do ALL earn every penny we earn and more.  The liability we carry is also large, something the average seller/buyer does not realize I am sure.  I will look up your site I want to see the homes you build in Florida.  Thank you again.

Jul 03, 2015 08:31 AM #2
Rainmaker
1,676,330
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

I enjoyed your read tonight, and thought it had great points to share with the readers.

Jul 03, 2015 01:05 PM #3
Rainmaker
2,751,347
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Those are interesting thoughts on the topic, Mary!  Like Winston mentions in his comment, you had great points to share!

Jul 04, 2015 12:42 AM #4
Rainmaker
2,751,347
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Mary - CONGRATULATIONS on having this blog FEATURED in the Feather Nesters group! 

Jul 04, 2015 12:43 AM #5
Ambassador
2,994,465
Anna Banana Kruchten Arizona's Top Banana!
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Mary I hire experts when I need service and they are worth their fees. Same goes for real estate brokers. As we know there is a lot that goes into marketing a home for sale.....and our years of experience is a priceless commodity. Home sellers should chose the best, expericed agent possible.

Jul 04, 2015 01:22 AM #6
Rainer
255,449
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

Thank you Winston. I am a firm believer of you get what you pay for in most cases and of course everyone is entitled and should do what they need to do.  I have nothing against that at all.  I just know that as Brokers or Agents we do a lot for our clients whether they are buyers or sellers.  These are just my thoughts and sometimes they just need to be said.

Jul 04, 2015 01:57 AM #7
Rainer
255,449
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

Myrl thank you so much.  I am honored to be featured in the Feather Nesters group, very honored.

Jul 04, 2015 01:58 AM #8
Rainer
255,449
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

Anna, I am with you all the way.  When I want a service, I too hire an expert who knows what they are doing and makes me feel confident that I am being taken care of.  I don't have the training or experience in a lot of areas and I don't mind paying the fees to have the job done right.  

 

Thank you Anna.

Jul 04, 2015 02:02 AM #9
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Rainer
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Mary Stewart

Wilsonville and Surrounding Portland Metro Areas
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