Why You Should Consider Flat Fee Listings
One of the things we do in our business is when we rehab and sell a property – instead of listing it with a Realtor – we use a flat fee listing service instead. If you are not aware of flat fee listing services, there are flat fee services in almost every real estate market.
Why I like ‘em…
A flat fee listing service is one where a broker will take a flat fee for simply taking the listing and putting your property on the MLS.
The service we use, which only operates in the Southern states, charges a $175 flat fee. But you should be able to find another service local to you.
Since it is a “Fat Fee,” there is no “percentage commission” to pay to a listing agent. In other words, you are not paying out 3% to a listing agent. You are only paying $175. This can save you thousands of dollars depending on the price of the house you are selling.
When you flat fee list, you get to choose the amount of the commission you want to pay the agent who brings the buyer.
A word of caution here: Always pay the agent who brings the buyer a minimum of 3% OR MORE!
The reason for this is when a Realtor has a fully qualified buyer, they truly expect to get paid at least 3% for bring their buyer to the table.
In many cases, if I’m trying to sell a house really fast, I offer the buyer a 4% commission to bring the buyer. Or you can offer an “Early Closing Bonus” of say $500 or $1,000 on top of the 3%.
Think about this from a Realtor’s prospective…
The more lucrative you make it for a Realtor to get paid a nice commission, the more showings the house will get, and the more showings the house gets, the faster it sells.
But wait, there’s more good stuff…
Another bonus of flat fee listing, is you don't have a listing broker in the middle of the transaction.
I have found that it’s easier for me to communicate directly with the buyer’s agent and keep tabs on the progress of their buyer’s mortgage in the event they are getting financing.
When there are two Realtors involved, they always think they have to talk to each other and keep YOU the seller out of the loop. When I am selling, I NEED to be in the loop.
Especially if borrowed hard money on the deal, every day the interest clock is ticking.
I have seen something as stupidly simple as a termite report hold up a closing for 30 days or more all because no one was tracking every detail of the mortgage the borrower is getting.
Let me tell you something here…..
When you are the person paying high interest on a hard money rehab loan, you want this deal to close as fast as lightening! The only way that happens is to take personal responsibility for touching base with loan officers, closers, loan processors, appraisers, termite guys, home inspectors, and of course the Realtor who brings the buyer.
Sometimes the buyer drags his feet on getting certain items over to the loan officer to process his loan. It happens all the time.
Ultimately, some of this stuff may be out of your direct control, but for the most part, you can stay on top of it and be in “the know.”
The Realtor who brought the buyer will not have any choice but to work with YOU, because you are all there is on the selling side!
One last thought, when a market is red hot – like most markets are today, there is very little value the listing agent brings to the transaction, unless you know nothing about real estate and do not want to be involved in the selling process.
So – flat fee list!
Enjoy the Journey!
Tom Nardone “Millionaire Mailman”
Talk to Me
Do you have experience with flat fee listing services? Share in the comments section below.