Flat Fee MLS
Has anyone used the flat fee MLS service (I've seen some advertised for $499 on the internet) to sell their properties? I don't mind paying a buyers agent fee but I hate to pay a listing agent fee if I could do that.
you get what you pay for!!!
Yes, has saved me thousands! They
put your name as the contact number
and the agents call you direct. If you have a good product, it will sell. One trick
that I often use is offer 5-6% to the selling agent.
Jeffrey Adam
P.S.- You can negotiate down to an even
lower rate with repeat business.
[addsig]
Why the heck would you offer 5-6% to a selling agent?. I can get 5% total deal from a realtor here locally.
That totally defeats the purpose of listing it yourself in the MLS. If you are going to offer that much, just go to a realtor and save yourself the listing fee.
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I'd disagree telemon,
By offering 5% to the selling agent only, Jeff is advertising to the greed factor of the agents. Unlike the normal 5% fee, the "listing agent" is guaranteed half of the fee simply for listing the property.
Ask any honest agent, and they'll tell you, they will definitely try to show, and promote, a 5% house over a 2.5% house.
The fee doesn't have to be that large, though. Even a point above the normal split will create the same response.
Roger
In the flat fee listing agreements I have seen, you are selling your property as your own agent and agree to pay a sales commission to a buyers agent in accordance with the normal fee sharing practice in your area. So if a sale involves a buyer's agent, you only save yourself half of the standard sales commission.
Only if you sell the house privately without the use of a real estate agent representing either party, then no fee is involved.
Offering a bonus depends upon your market. In a seller's market when there are fewer properties in inventory to satisfy buyer demand, a bonus is unnecessary.
In a buyer's market, you may need to offer a bonus to induce real estate agents to show your property.
Remember that the fee paid as a sales commission is paid the the selling broker. The broker and the selling agent will then split the fee according to the fee split schedule established by their own agreement.
A few years ago, I used one of those listing services in a normal market. The typical time on the market for a fairly-priced, listed property in that area was seven weeks. I had a contract in hand by the end of my seventh week. Upfront, I paid $395 for the listing and $35 for the lockbox rental. At settlement, I paid a 3% sales commission to the real estate agency representing the buyer.
Thanks Roger!
I don't think Telemon understands what the split is with the commission between agents.
I recently sold a $900,000 house with a listing service. It cost me $300.00 to list the house and took 1 month to sell costing me 3% to sell. It was a good product, so I didn't have to offer 5% - 6%.
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 01/26/2004 ]
[ Edited by JeffreyAdam on Date 01/26/2004 ][ Edited by JeffreyAdam on Date 01/26/2004 ]
I've used the service and what I found is that it generally generates alot of calls from Agents who are trying to convince you to list with them. It does get you out on the MLS but I've found that motivated buyers are looking in multiple places to find property. Sites like www.Isoldmyhouse.com and newsprint advertising are what really sell the home.
I found a similar deal with a agent...or should I say list broker.
He charges me $275 as a listing fee which includes the lockbox. Then the commission paid out is 3.5%, where he keeps a half percent and the buyers agent gets the standard 3%. His contract is real flexible because I can cancel at anytime with no fee, and if I still manage to sell it on my own with it listed, I pay nothing. It's all in writing and I think it works out well.
Good Job Neb:
When you are doing multiple deals, it all
ads up!
Jeffrey Adam
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There is a savings. In some cases- a substantial savings. Refer to JeffreyAdam's post (my new found friend) savings of about $27k.
I have found that most Realtors are not motivated by an extra inducement (commission) to sell. In most cases, the prospective purchaser finds the home and the Realtor puts the transaction together and takes what's offered him.
Did you buy it yourself ? Why not sell it yourself?
It all boils down to checks and balances. You do what you do best and what makes you make the most money.
If that's buying, why not have someone get a peace of the pie for helping you get reed of the property. Besides that, buy building a new relation with new realtors in different parts of the town a deal or two a year might lend from each such source in your lap so don't be stingy.
Let everyone make some money.
Omega is right. You have to do what is
good for your situation!
Having bought and sold over 40 houses
last year, it was favorable for me to use
either a flat-fee listing service or my broker at a discount. If you work a full-time job and do this part-time, then let the realtors handle it, just don't let them
beat you up in price and give away the farm!
Best Riches,
Jeffrey Adam
[addsig]
It was pleasant to hear from investors some nice words about real estate agents out there working earning their fees and commissions.
Alot of confusion between buyer and their agents would be limited is when the buyer starts asking questions to their agent and puts their demands in writing on the contract and service agreements.
Yes ... us agents can be of service to the real estate investors. Working with one or two good agents will make you money.
I don't know if any of you remember a nice old man by the name of M.Penn Phillips. He was the Dean of the desert land dealers. As time went on his transactions became more and more complex. Buy a hunk of desert land, then jimmycrack subdivide it without benefit of clergy (means without doing it correctly and permited.) Then sell the smaller parcels for gigantic sums because it was a little money down and lots of mortgage going on for 10 years or so and then an www.exploder.Most of his Title work was done by a John Doe Title company who issued policies without any knowledge of the land itself. It was a fun time.
Once he had a tract of land that just could not move. He broke it into 60 Acre parcels and still nothing. So he came down to 10 Acre parcels and still nada.
Sooo he cut the parcels to 2 acres each, advertised them as prim high desert land. whatever that meant and payed a 10% commission on every sale. And oh god did he take back paper. All of which he sold at about a 50% discount for cash. Well it was scam city and half of Los Angeles was buying this land. The LA Times ran a cartoon of a Coyote in a top hat with a fist of dollars in his hand and a cigar in his mouth. I think the title was "I just changed my name to M.Penn Phillips!"
From all of this Scamming, came the first desert retirement developments. Even some of the more recent desert resorts all date back to this land grab and please do not forget the 10% commissions! Sometimes from a great evil comes a bunch of good things. This was one of them.
Memory Time. Lucius
The 5-6% commission to the buyers agent is something I have contemplated for some time. In doing so I have spoken to quite a few realtors asking their opinion on the subject.
Of course all of them loved the idea of being paid that high of a commission, but for the most part most of them admitted that the homebuyer is ultimately going to make the final decisions, and while it may get them (the realtors) attention, if the house doesn't fit the specifications that their client has outlined even a 20% commission is still won't get their clients past the front door.
Further what they have said is that regardless of the commission, if the house meets their buyers specifications they are going to show it to their client anyways regardless of what the commission is, since the bottom line is the house is ultimately going to make the sale or not, not the commission to the agent.
In my area, I am one of only a hand full of
investors who play the "no-money" down game of selling houses. I use a government program that helps first time buyers. So it is a win-win for both the buyer and realtor.
Next time you have a house for sale Rehabinator in a not so desirable area,
try out one of those MLS service and put:
6%commission, 6%commission
Put this across the first line in the comments section and see how fast your house is sold.
Best Riches,
Jeffrey Adam
[addsig]
If I get into a desperate situation I will serious put some thought into trying it.
We brought a repo home and now it is time to sell it. I'm trying to figure out how to market it. I'm thinking about paying the 499.00 to put it on the mls listing and paying the 3 percent to an agent if any of them would find a buyer. My question is that I don't know anything about the contract stuff for selling property so I was thinking about getting a realestate lawyer. If a agent gets 3percent does he do anything else besides finding a buyer?
I have used this with good results. The broker I go through charges $299 and of course you pay 3% to the agent who brings you a buyer.
Just shot my forms over for another MLS flat fee listing yesterday. Wish me luck!
Hmmm...... I'm a broker and I use MLS. Sounds like this might be a way for me to make some extra money! No one around here is doing that yet.
I guess I need to clarify my question, I was wondering if the realestate agent
helps with any of the paperwork on the sale if he gets the 3% fee. Also wanted to say this forum has been very helpful, thanks to all that have put their knowledge to print. And to the person who responed to me "Good Luck" on your sale!