Are Flat Fee Real Estate Companies the way to go? I will tell you no way and here are some reasons why. A flat fee company is only as good as the agent you have working for you. In many cases these agents are capable and diligent but have way to large of a workload. The majority of the work is left up to the seller. This would be ok, except that sellers are not real estate professionals and don’t know the market. Sellers are sorely misinformed about current real estate and (rightfully) only have themselves and their own best interest in mind. A Realtor working on commission makes nothing if a property doesn’t sell. It doesn’t matter how much time, money, and energy an agent has put it; the only way an agent gets paid is if they actually do their job and sell a house. What other job says, no you did everything right and you put your own money into it, but we decided not to pay you because it didn’t work out the way we planned. None.
Flat fee makes you do all of the work. I touched on this but wanted to elaborate. Many flat fee companies have an option that let’s the owner conduct showings and keep the home out of MLS for the most savings. However, not all owners are suited to this task and, it is a fact that the vast majority of homes are sold through MLS by other agents. If you have a lot of patience, price your home attractively, and are not in a hurry to sell, this may be an option. But more often than not, a seller put a house on the market because they expect results. Otherwise, what is all of it for? Nobody wants to put effort into something and not receive the rewards. In some cases though, flat fee companies offer a full service option that includes a competitive commission for cooperating agents through MLS. In those cases, the savings is typically not as great, but can still be significant. The only one losing out is the actual agent who took the listing. That may seem ok for the seller, but the realtor isn’t going to go above and beyond for your listing.
Ultimately, many brokers and agents who have tried the discounted flat fee commission business model have found that they simply cannot make enough money to survive in the marketplace. That, however, does not mean that it is necessarily a bad thing for consumers. However, most sellers elect to go with traditional full service agents and there are many good reasons for that. The main reason is simple: service. A Full Service Realtor makes it their personal mission to sell a home. They are as motivated to sell as the actual seller. Sometimes even MORE motivated. The agent knows the market and tells the seller the hard truth when it is needed. People selling their homes want the most money for their property and think that because a neighbors house sold for a million dollars 5 months ago, that they will be able to receive the same. There are so many factors that determine than and only a Realtor can determine if it is true.
So in conclusion, flat fee real estate is a quandary. It is tough because it can save the seller thousands of dollars. In the grand scope of things, saving thousands of dollars in the long run may have cost them way more if their property sat on the market because they had to do the job of a Realtor. There is a reason Realtors are experts in real estate and sellers are very unsuccessful when they attempt to sell homes themselves. Go with a Realtor, in the long run, it will save you time, effort, and money! – See more at: http://www.realestateponce.com/blog?post=Flat-Fees-Mean-Flat-Sales&xid=040113-01#sthash.p0kOyRt3.dpuf