Do commission realtors do anything more than flat fee realtors?

Question

My last 2 realtors just "seemed" to market my house on mls and nothing more, so a flat fee realtor could do the same for less, right?

Some realtors promise better results than others, but is there much more that can be done? Some promise faster results and a higher asking price, but is that really possible?

Account Closed · Answer

Hold on a minute while I get my popcorn.

Russell Brazil · Answer

Some realtors are experts at what they do, and some are morons....just like any profession.  What the top tier agents do versus some part timer is going to be night and day. Also depending on local laws, a top tier agent might be protecting you from a lot of liability post closing.  Im under contract on the buy side of a transaction now, and 1 day after we close me and my buyers will be filing 1 form with the state that will cost the seller $18,000 because the discount broker they used did not have their seller fill out the disclosure form properly, and the mistake they made will cost them that amount.  No lawsuit needs to be filed, just 1 form, and if they dont send a check within 90 days, wages get garnished. Nice and simple.  They also forgot to fill out the federal lead based paint disclosure form...that isnt really pertinent to my buyer, but the EPA could fine them up to $40,000 for that.

Jonathan Minerick · Answer

The National Association of Realtors does a yearly study on how buyers found the home they purchased. The revealing part about this study is that is shows listing a home on the MLS (and offering a fair commission to buyer agents) really does all the marketing work you need.

When listing agents talk about special programs to sell your home, they are mainly gimmicks. A few well known examples:

1. Pre-marketing to their database of buyers. This is done so the listing agent can capture the entire commission for themselves. The seller is told they can avoid heavy foot traffic in the house and sell quickly. Known as a "pocket listing", it can cause sellers to make much less money. Even the Realtors association has warned agents on this.

2. Guaranteeing to sell your home, or they'll buy it. The agent gets you to list at a price well below market value. No agent would buy a home for what it is worth, as they would lose money having to hold and resell. A home listed below market value sells quickly. If it doesn't, the agent buys it at the below market price. They win, you lose.

3. Print marketing. Accounts for 1% of buyers. Just not a good use of money for what you get.

4. Open houses. This is a well-kept secret in real estate. Listing agents host open houses to recruit new clients (it's not about selling your home). It's basically free marketing for the listing agent. Yes, they'd be ok with selling your home, but it's much more about finding new buyers to work with. The serious buyers (or their agent) will reach out regardless of whether you have an open house or not.

Jorge Zea · Answer

Some do ... some don't. It is a one on one basis analysis and not a blanket to cover all.

... but the fact that Flat Fed Listing services (Entry Only Brokerages) exist and are growing exponentially, can be understood that the public considers listing agents too expensive ... this is our opinion for most situations.

On the other hand, Bure Agents deserve their money. Most do most of the legwork: pre-approve the buyer, (or verify fonds), show the properties, prepare offers and most disclosures, work with the bank, appraiser, title company, escrow agent, seller and buyer ...

Jorge Zea · Answer

@Chris Kraemer: Agents are trained to get a lot of listings so they will come up with a list of marketing strategy that is mainly aimed at getting more listings, not selling the house. Most of the exposure will be automatic and included in all (or vastly most) MLS listings even as Entry Only: MLS exposure, Realtor.com, Zillow, Tulia, Redfin, Movoto, HousePads, HomeSnap, .... presence in other's Realtors and Brokerages websites (aka IDX syndication). These, in the majority of cases (unless it is a particular property that diverts from the standard of the market) will get the property sold within normal average sale time if priced correctly. Open houses you can host yourself and the Entry Only broker should list them for free in the MLS and syndication sites. Professional pics are also important and you can get a good set for $150 with virtual tour and /or slideshow. Yard sign you can get chep online with teh Entry Only Brokerage logo  to comply with MLS rules (and you phone)

95% of the properties in the USA sell via the MLS. This is by far the most important element of your marketing mix. This is why FSBO without MLS rarely sell..

Whatever additional marketing elements Realtors offers  focus on getting the WOW factor and getting the listing. they can build a website specific for the property (this doesn't work if not matched with an aggressive and expensive google ads, bing ads and facebook and instagram campaign). Drone videos - these are only useful when property is difficult to show through stills and 360 V Tours (like large land parcels, mountain properties or waterfront properties to show view form the water - You can hire this yourself.

With all the resources an Entry Only (Flat Fee) listing broker has through the MLS, in most cases(not all), it is difficult to justify a high commission by listing agents.

Again ...before the fellow Realtors react to my comments. The Entry Only or Flat Fee model is not for everyone and there are a ton of very good and very professional Listing Agents out there that are worth the money .... but unfortunately they are not the majority. ....and Entry Only listings are just a tiny fraction of the market (much less than 1%) so no need to concern...keep doing what you are doing, ethically and professionally and you will always have good paying listings. The Flat Fee system is for a fraction of the population that feel they can do it themselves and want (or in many cases "need") to save the money.

Jade Henderson · Answer

Hey, Chris.  I schedule open houses on a regular basis, not just one during the term of the contract.  I also advertise for my open houses throughout the neighborhood and community, including the closest apartment building to entice renters to buy, just to name a few.  I do additional advertising too, but that is just some items i do just prior to regularly scheduled open houses.  If your realtor isn't doing at least that, you may want to request from them, prior to signing, what they intend to do to sell your house.

Jake Thomas · Answer

Flat fee Realtors will only list your house on the MLS and do nothing else typically. You're not just paying for marketing in the beginning but someone to get you through the process smoothly. Not all agents are created equal but typically a good agent can make the process for someone with no experience easier. If you are unsatisfied with your current agents keep looking or I encourage you to get your license.

I have one client that has been through 17 agents before they found me and now we have a great working relationship. You just have to find the right agent and it takes time. Eventually you will find someone that suits your needs.

Good luck.

Jade Henderson · Answer

Jorge, I agree. Listing on the MLS is not even close to enough work to get a house sold.  MLS is just one part.  Good agents will do a lot more to get a house sold.  All of the additional advertising  and open houses, which takes up a lot of time, will get a house sold more quickly.

Chris Kraemer · Answer

Hey Jon, I appreciate the input. Thank you!

Chris Kraemer · Answer

Thanks Jade

Do commission realtors do anything more than flat fee realtors?

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