Flat fee to realtor?

Question

I've been considering potentially selling a large duplex of mine in Tulsa, OK but I'm not exactly thrilled to pay 3-6% to a realtor to list it on the market. Can any realtors (or anyone who has done this before) chime in on what kind of flat fee I might be looking at if I find a buyer myself and just need a realtor to handle all the paperwork/disclosures for selling? Since its less time/marketing expense/etc. I would imagine a realtor would be happy to do it for less than the normal cost of listing a property, but maybe I'm wrong. Thanks for your input.

Caleb Brown · Answer

For a flat fee most do around 2%. One point though is 6% for listing it shouldn't be a deal breaker. With low inventory across the board listing in MLS should be a no brainer. FSBO you won't sell for as much as MLS would.

Kyle Wells · Answer

Hi Kevin, this is a great question. Every realtor will be different and it will depend on how busy they are. If you approached me to simply dual broker the deal to handle writing up the purchase and sales agreement and supporting disclosures through the closing process (this includes a lot of coordination between buyer's lender, inspector, appraiser, and title and escrow), I would consider a 2-3% commission (depending on price point). It's important to remember that commissions don't go 100% to the agent as the brokerage firm gets a portion, there's franchise fees for using the brokerage name, potentially local taxes, ongoing expenses for realtors, federal taxes, etc. Not every agent will find it worth their time to take a significant commission discount especially if they're doing a lot of business already. I would also ask yourself if you're missing out on a higher sales price by not hiring an real estate agent that would in return increase your net proceeds even while paying 5-6% in real estate commissions. Good agents will be able to generate more market exposure on your property. Hope this helps and good luck with the sale of your property!

Charlie Cameron · Answer

@Kevin S. You'll pay the buyer side either way.  Quick story, I just sold my first investment property (two quads).  I started by trying to sell it myself (I'm not licensed in the state I owned in).  That fell through (buyers/friends wayyyyyyyy too conservative and I wouldn't have made nearly as much as I thought was reasonable).  I told my PM and she made a couple calls and had an all cash offer at the price I wanted lined up that same day.  I ended up giving her and the buyer's agent a total of 4%.  In total the "loss" of commissions was WAY less than if I'd sold it to the first buyer.

I had a similar experience before I became an agent where I sold my own home.  Still had to pay the buyers agent (who was fantastic to work with and earned more than her fair share), and I didn't realize how the tax proration was done, which cost me a few grand more than I expected - didn't even realize it until the closing table.  Wouldn't/shouldn't have had that issue with an agent.

Albert Hepp · Answer

If you have found the buyer yourself, do an internet search on "close my home sale" and you should find a flat fee purchase agreement and closing arrangement service (although not area has such services available).

If you haven't found a buyer and are considering a flat fee MLS listing, many of the reputable services will include the purchase agreement forms and guidance on how to get a transaction closed when the buyer does not have an agent. If you go the self MLS listing for a flat fee route, be careful because the best advertised/cheapest websites typically have awful reviews. You will read stories of paying, getting a listing with errors and then the brokerage not helping fix the listing. There are also lots of reviews about how the seller gets switched to an entirely different brokerage, and things go south. If you can't find hundreds of positive reviews, keep looking! Also, be sure to ask about whether assistance with an unrepresented buyer is included with the listing service.

Marian Smith · Answer

@Kevin S.  You need a realtor bring a buyer.  If you can find your own buyer you do not need a realtor at all.  If you know the value of your property.  And you can read a contract.  Most sellers need their property listed on the mls to get market exposure and you can list for as little as $500.  But you have to agree to pay the realtor representing the buyer a commission.  Stick a sign out front and test the waters.  Give a title company a call and ask if they work with private sales.  Is there a state re sales contract that everyone in the state uses?

Zackary Shephard · Answer

Sending you a message

Tony Bellantuono · Answer

@Kevin S. If you find a buyer willing to pay your price, I'd lean on your lawyer for paperwork and disclosures. You're paying him/her anyway. If you need assistance finding a buyer and want to have the property actively marketed, spend the 3%, its worth it.

Nate Sanow · Answer

@Kevin S.

I’m an agent but I won’t sell you on being an agent for you, which I suppose may piss other agents off but I get it you want to look out for your bottom

Line...... but I will say I’ve noticed a ton of FSBO’s stay on the market long periods of time this year due to being overpriced, not appraising, just using a Zestimate, etc. Also some do sell, no agent, yes. I’ve dealt with some in my off market stuff and it seems like most know a realtor and have their advice in their back pocket.... which is ironic to say the least. The service provides value but the client wants free work.

I’m actually currently involved in bringing a buyer to a FSBO who was willing to pay the buyers agent fee at a reduced rate. I’m still providing a full range of service and IMO doing so for both sides to an extent... the FSBO in this case was able work it herself she felt being under a LO and “having a lot of realtor friends” who coached her on what to do. So— again I’m just saying it’s ironic to see value in the service and just not want to pay for it.

Brian Wagers · Answer

Depending on what your other focuses a good realtor can be well worth it not only saving you time/energy but getting the most out of your property. Flat fees are not uncommon in commercial RE. The percentage/fee is negotiable and a good realtor shouldn’t get to hung up on it and should want to do what it takes to get the property sold depending on how high maintenance the deal (or seller/buyer) is. I You can really go either way but my personal opinion/vote would be to get one

Jeremy Paul · Answer

@Kevin S.  Sell it yourself, you don't need a realtor.

Flat fee to realtor?

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