Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Mike Kelcher — Sat, 21 Jun 2008 11:00:00 GMT

Sometimes a seller doesn't need the whole nine yards, or cannot afford full service. They have few options. Often the seller is upside down in terms of what they owe vs. what the home is worth. Unless they can afford to write out a check at closing, their options are limited. Historically, a sell in the above scenario simply had to sel lthe home themselves, without the power of the MLS, and therefore got little exposure in terms of making MLS affiliated agents aware of the fact that their home was for sale. By listing their home in MLS for a flat fee, the homeowner might just be able to afford to move, by making the selling costs manageable. This of course, means the seller has little or no representation. But, at least he's on MLS. Because MLS requires a listing to have at least "some" compensation to a buyer's agent, the buyer's agent can decide if it's enough. I've done such listings and always have the seller offer AT LEAST the usual rate of compensation to buyer agents. Usually, it's HIGHER than the going rate because the buyer's agent does more work. Where's the problem? How is this not in the seller's best interest? Sure, it might be better if he had representation, but not all sellers can afford that.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Karen — Tue, 18 Mar 2008 11:00:00 GMT

Yeah... Yeah... Yeah... I kindly refer to 'flat fee' as data entry clerks. They are not realtors and the big kicker here folks... Once you hand them a check, THEY'VE BEEN PAID! What motivation is there to sell the house? I'm an absolute believer in change, but MAXIMUM exposure and proper direction for the seller is of utmost importance... Afterall, the objective is to SELL and not just be FOR SALE - The perfect solution is just reducing the commission... The buyer still pays 3% to the selling agent anyway you slice it. Real Estate is not a game... it's serious business and the public is relying on us to facilitate a sale. How do you do that $400 upfront? If I were a crook, I'd be doing it all day long... wouldn't I? For you FRANCHISERS who claim to be worth every penny... The brainwashing is working... Keep believing

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Linda — Wed, 12 Mar 2008 11:00:00 GMT

This is in response to John's post on 2/25 as to why full service agents are reluctant to show FSBO's: As a Realtor I run my services like a business and I get buyer agreements in writing from anyone I represent to prevent the scenario you portray here. The days of showing 30 homes with no written agreement from the buyer ot use you are over. If you don't get the sale then shame on you for not protecting your time and investment. Realtors really need to start acting like business owners in today's market. Also, when you become a Realtor you agree to stand by a code of ethics which means to show properties to your buyers based on their criteria not on the listing type. I have FSBO sellers sign a compensation agreement etc. and have had no problems. Realtors should be working for the buyer - not working for their commission percentage. Just my 2 cents.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

John — Mon, 25 Feb 2008 13:00:00 GMT

RE Agents could level the playing field quickly by reducing the rip-off rates of 6% to sell a home. An agent does the same work for a $200K house that he/she does for a $500K house, but makes $6K for the one and $15K for the other. And EACH agent makes that. Marketing costs about $1,000 - give or take a few hundred depending on the agent and the area. The rest is payment for time and paperwork and some incidentals. NO ONE makes that kind of money in sales - ask a car dealer. So it is no wonder that RE Agents are up in arms about people slowing their sweet monopoly! Time for this to stop.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Denise — Fri, 15 Feb 2008 13:00:00 GMT

Ok.........for those of you who don't understand a "full service" agent's reluctance to show a "limited service" listing....let me clue you in. You are right to say that it is illegal not to show these listings or to boycott them in anyway. However, at least here in New Jersey, the "limited service" or "flat fee" listings have no agency signs on the property...the sellers can keep their FSBO signs. The sellers are also allowed to sell the home on their own, and owe nothing but the flat fee they already paid. So here is the scenario that scares the "full service agent". You take Mr. and Mr. Buyer to see 30 or more homes (because the inventory is through the roof, and they want to see EVERYTHING). You come to the limited service listing with the bright and shiny FSBO sign on the property. Next thing you know, your buyers have disappeared and the "limited service" listing has been withdrawn. What happened?? Your buyers went back after they left you....figuring they would just deal directly with the seller.......getting the home at a lower price.....because the seller could now take off the 2.5% he was planning on paying the buyer's agent. When this "glitch" is fixed here in New Jersey.....then I am sure that agents will not be as against the "limited service - flat fee listing".

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Sonny Jo — Tue, 12 Feb 2008 13:00:00 GMT

As a Realtor and loan officer in Southern Calif I would like to let you know the MLS I belong to requires compensation to the buyers agent for a proeprty to be listed on the listed on the MLS. The seller can choose a percentage of the sale price or state a fee. I think this a great idea. The buyers a gent knows exactly what they are going to get paid. The sellers and buyers are much more knowledgeable than in the past. Also, knowledge is pretty easy to come by on the internet. I think flat fee listings are great. Most "Flat Fee" companies have a list of prices for providing other services. As an agent I have decided I want to stay in the business and to be successful I have to change with the times.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Eric Henderson — Mon, 04 Feb 2008 13:00:00 GMT

I think this post is very short sighted.. I own and run a brokerage in Kansas - we have full service and flat fee options - but we do provide most services of full service traditional 6 ot 7% guys out there... We get our share of traditional listings as well at these higher rates. We have a flat fee option, which is perfect for many of our customers who either know how to negotiate, are professionals themselves and at lease think they know, are attorneys, are bankers or just families who may not even have the equity due to recent purchase and now a job transfer or lay off... We provide a way for these people, of all sorts, to list their home on the MLS through a regular brokerage, and get featured listings on REALTOR.com as well as into the IDX data feed on all the other local broker websites... we also publish these listings in the local home magazines... a lot more than some of my competitors that are "limited service" as we also schedule showings and put a real electronic mls lock box and yard sign out... are we crazy? Perhaps - but the last time I checked, this was America and the Dems and Libs out there have not made us a social republic where the free market can not really be free... I'll probably get heat for that comment... but seriously - the thing that really makes our country great is the ability for anyone here to start a business, create new things, and compete... be it an invention of sorts or in a regulated service industry like real estate. I love what I do - I figured out exactly how much it costs me to take a listing and market it properly. I've created systems to streamline things and this is basic business skills 101 - you compete... I compete with price and options not available to sellers from the brokerages that charge huge transaction fees to their sellers agents or who have to pay huge royalties to franchisors. I was a loyal C21 guy for a while - then they ticked me off and lied to me... now I am independent and taking all their business... and still making a 6 figure income with less headaches.. the change forced me to reevaluate my business and what it took to be in business as a REALTOR... I figured it out - set a reasonable price for my efforts and out of it was born a $500 flat fee service - 500tolist .

Pretty simple really... for those big brokers out there worried that we are providing less service or not helping out clients at all... please chew on this for a moment... when you close a house - you typically spend money on closing gifts for your sellers and buyers... well - my sellers give us closign gifts and send on average 3 more sellers to us the same year, plus we get the buyers for all our houses...

Perhaphs you might need to rethink your commission splits as well as I also give my agent upto 95% with very little overhead, and no crazy nickle and dime techniques... we streamlined our services, made it clear and easy for the average person to understand real estate transactions, then found office space that was affordable and we dont over spend on anything - like ridiculous extravagant parties where other realtors get drugged and loopy with booze... we are a serious group that loves to support our community by offering an alternative.

So sue me... we use the same contracts as the rest of the area here, provided by the board. We have everything we need to launch in other markets as well...perhaps if we found another broker in your area that likes having business, even in down markets, we'll license our in-house developed software (yeah, we got sick of the junk being pushed to us by vendors at trade shows and national conferences - so we hired our own team of programmers and graphics artists... developed our own MLS IDX Search site with tracking, paging, drip email, favorites, mapping, directions, etc...)... You just never know what can happen when you are forced to make a decision to either stick with the old status quo or try something new - and when you do decide new isn't always as bad as others who have something to loose might make it out to be - you start to get creative and whammo - a new idea or way to compete is born - and in America - this is what makes us great - you can act on it and reward yourself for your efforts and ideas, and make an honest living..

Now, for those out there that are listing in the MLS and not offering any compensation for buyers agents - shame shame.. you should at least offer something... we try to get 3% out here but some sellers cant even afford that so they fill in the form and we take care of it... of course it is well disclosed on the MLS exactly what a buyers agent should expect - I have yet to see anyone tell me they do not want to offer a fair compensation to a buy agent should an acceptable contract come in... -Eric

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Anonymous — Sat, 02 Feb 2008 13:00:00 GMT

Full service listing agents are on there way out and not soon enough. SELLERS, ask your full service agent this question: "Out of the last 5 buyers you worked with, were did you find there homes?" More than likely all 5 homes were found through the MLS, but they dont want you to know this. They want you to believe that they work so hard. Sorry Full Service agents, but the sellers are smarter these days. It's to bad the MLS still isnt in book form. This way you could put it in a breif case and handcuff it to your wrist to protect your commission.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Richard Poppe — Thu, 24 Jan 2008 13:00:00 GMT

A former President of the Salt Lake Board of realtors said in a broker meeting in 2002, "I promise you that ten years from now there will be NO LISTING AGENTS. If you plan on being in business, you'll need to open your eyes right now and see what's going on around the rest of the world. Companies will be doing business very similar to the way Richard's company (Fidelity Realty) is doing business right now." Flat Fee Real Estate. In 2007, Fidelity Realty's one office sold more homes (229) than most individual offices of Colwell Banker, Prudential, Re?Max and manny others. That's double the business from the year before. This January 2008, Fidelity is on track to realize 4 times what they nsaw last January. The public will drive this movement because the public owns the real estate not the "Industry". You can see broker statistics at www.fidelityutah.com

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Anonymous — Mon, 07 Jan 2008 13:00:00 GMT

I'm commenting late in the game here.. but I wonder if the agents who state they "can't show a disocunt listing" realize they're in violation of the law. They can not only NOT refuse to show a listing, they can't threaten to boycott, either. What seems to be completely lost on the agents is that all the flat fee brokerages are doing is opening up MORE listings for them to sell, and earn a commission from. It's nothing more than when a FSBO offers commission to a buyer's agent. Duh.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

anonymous — Fri, 19 Oct 2007 11:00:00 GMT

Flat fee MLS is useful for the many for sale by owners who just want to sell their homes without having to pay a good amount just to list their homes.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Denise — Fri, 12 Oct 2007 11:00:00 GMT

Having a middle man do your negotiating is great if you have a substandard product (I'm thinking of the car I traded in instead of sold myself because I couldn't honestly say it was a good purchase!). I've sold 4 houses and the easiest sale by far had no middleman - I worked directly with the buyer. There is still a need for realtors to help people who do not want to be bothered with selling their house. But for those of us who understand how this works, let us handle the sale ourselves.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Craig Davidenko — Tue, 09 Oct 2007 11:00:00 GMT

Ok lets all calm or should I say "com" down?! Denial, some people think that certain things last forever.however those people eventually learn the plain and simple truth.many many years ago the dinosaurs romed the earth alongside real estate brokers and agents who held the "holy grail".."the mls book" but then came along came the world wide web.dinosaurs extinct and brokers and agents wondering when people would notice that they in fact did not hold the "mls" anymore.

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Bill Brynelsen — Sun, 26 Aug 2007 11:00:00 GMT

I have a quick question for the author of this article and the traditional real estate agents that have posted a comment. "I have a broken typewriter, does anyone know where I can get it fixed or buy a new one? I hope you get the point! You change or go out of business! I won't waste much more time on this except to say this. Traditional real estate companies and their agents are doing nothing more than rearranging deck chairs on the titanic!

RE:Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash

Laura — Thu, 23 Aug 2007 11:00:00 GMT

Flat Fee is here to stay - we offer full service, discount service and flat fee in the st louis area - we let the seller choose how they want to sell their house - and we give first rate service! Just because a company doesn't charge a fortune is no reason to down them - of course there is a new kid on the block offering free mls listings - they are not in missouri yet, but they will be.