More on Real Estate Selling Fees
After yesterday's post about discount brokerage offices, I thought it worth expanding on the discount commission issue. Commissions (from every agency) are ALWAYS negotiable. Each office may have it's own company "policy" but the fees are still negotiable and you can ask for a discount regardless of who you work with. It doesn't mean you will get a discount from everyone, but you can ask. This being said, it makes sense to " shop" for your discount if you're determined to get one.
In my experience, the difference in getting a fee reduction from a more "conventional" real estate office is that the listing agent generally takes the discount. This means the listing agent does not discount the commission paid to the buyers agent, but reduces his or her own fee. Therefore, all agents have equal incentive to sell your listing as compared to any other. This gives you the advantages of saving money (theoretically) and the advantage of working with an agency who cooperates fully with the entire roster of Multiple Listing Service agents.
The problem with making a decision solely on the listing and selling fee is the intangible factors involved in the marketing and sale of a home. There are a multitude of ways to lose ALL the money you "saved" (and more)... but that is a discussion for another day. Just remember, make your decision based on who you determine will do the best job of marketing your home. Balance the pros and cons the best you can.


Reader Comments (2)
Flat Fee, gives a strict marketing plan with a single pricing structure.
Flex Fee gives a menu of different services and a corresponding fee structure.
For example a simple MLS imput might be a couple hundred dollars, negotiate the contract also, possibly a thousand dollars, work with the appraiser, a hundred dollars? Go to closing, more. Paying for the level of service, or how much does the Agent take care of and how much does the Owner cover is an easy way to look at this concept. Negotiating the fees is the same as negotiating the commision. What are the Agent's efforts worth?
A Seller that is computer savvy, not afraid of contracts, willing to spend time on the phone to handle details should pay less than a elderly person who's out of state children are trying to sell a home.
Managing costs and increasing returns is what is is all about.
Giving the consumer options is a good thing!