With a Flat Fee MLS Listing service, the Flat Fee Broker will list your property in the MLS system, but you only need to pay one side of the sale commission. You don't pay a Discount Realtor- you only pay an agent to bring you a buyer. You agree upfront to pay a 2% to 3% commission to an agent that brings you a buyer. This is significantly less than the typical 6-7%. Buyers' agents will contact you directly with your phone number as the contact number. You only pay them if they sell your property at your terms. You also retain the right to sell on your own and pay no commission at all.
Surveys show more than 80% of all properties sold were listed on the MLS by Flat Fee Broker. But in addition to the MLS by Flat Fee Broker, most Flat Fee MLS listing packages give your property exposure on the Discount Realtor websites. Your home shows on most of the real estate brokerage websites that display property listing information through the MLS IDX. That's a tremendousness amount of exposure for your property. Millions of home buying customers and buyers' agents will have access to your property's information.
Flat Fee Realtor ensures that your home is listed on the MLS without the expensive sales commission you would pay out because you pick the commission personally. You're guaranteed increased exposure on hundreds of real estate websites utilizing a Discount Realtor program and you're in control of everything. With Flat Fee Realtor you take advantage of the opportunity to get the most for your money, whereas with typical real estate agents, you must go by their rules and regulations and turning up with paying high sales commission on closing the sales.
You would think that if there are flat fee discount realtors and rebate real estate agents in the market the buyers' and sellers would celebrate. You may also think that there would be many traditional agents leaping at the chance to become flat fee realtors and offer discounts. In most part of US, brokerage fees are as high as 7% of the sales price. The average co-brokering fee would be 3% (split the fee paid to a buyer's agent). Discount Realtor offer to sell a home for 3%, 4% or 5% of the sales price, and give half to the buyer's agent. Sometimes they may give more to the buyer's agent because this is the person who actually sells the home (brings the buyer to the table). In any case, the seller pays less than 7% what he used to pay the traditional real estate agent for selling his home.
A flat fee broker will charge a flat fee upfront for a listing, and pay a cooperating fee on top of that amount to the selling brokers. The home seller will also pay the cooperating fee. The primary reason why home sellers and buyers are turning to flat fee realtor and Discount Realtor is to save money, and lots of it. With rising home prices, commissions too have gone through the roof. Home sellers know that the local MLS is where most homes get sold, reaching the eyes of prospective buyers. In addition, some discount realtors are offering full service as before.
In recent years, certain discount realtors have moved away from commission-based pricing and have offered flat fee listing services. These services are often customized to meet the sellers' needs. For many sellers, their main goal is to get their property listed in the MLS for a flat fee which is done by Flat Fee Broker. They want the maximum exposure for their property so that maximum buyers' see the property and maximum number of real estate agents come across their listing.