I get this question quite often.
Answer: No
What is a flat fee listing?
A flat fee real estate listing is a listing in which a flat fee is charged as opposed to a fee calculated as a percentage of the sales price of a property. But flat fee listings are most commonly associated with “limited service” or “no service” listings.
Generally, a home seller will pay a real estate brokerage firm a fee to get their home posted to the local MLS so that it will be visible to Realtors who use the MLS database to search for homes for their buyer clients. The seller offers compensation through the MLS to any real estate broker that produces and represents a ready, willing and able buyer for the property.
But that’s usually where the listing brokerage’s service stops. Property inquiries are directed to the homeowner. The seller also handles showing the property to any prospective buyers. Offers are presented directly to the seller and the listing firm usually does not provide any assistance other than listing the property on the MLS.
This is basically a “for sale by owner” listing in which the seller represents his own interests but offers to cooperate with real estate agents who may represent a prospective buyer. The going rate for this service in Florida is anywhere from $199 and up depending on the term of the listing, and what extra services a seller may want such as signage, flyers, lock box, etc. For the seller who wants to handle the sale on their own, this is an inexpensive way to get on the MLS. You get what you pay for.
So why don’t I do them?
I’m a full-service Realtor and I want the buyers’ agents who see my listings on the MLS to know that they can have confidence knowing that my seller clients are well represented. As Realtors, we all know that when we see a listing brokered by one of the flat-fee companies, that this is basically a “FSBO”.
This may scare away many buyers’ agents because of the lack of knowledge about how the seller will represent him/herself. “FSBOs” scare off many agents. The agents feel more comfortable working through a transaction with a professionally represented seller. Granted there are some agents who offer pretty awful service as well.
But as a Realtor who represents sellers, you want to develop a reputation as someone who is easy to work with, is fair and honest, returns phone calls and e-mails, and keeps the stress level to a minimum. I have worked with self-represented sellers who were a pleasure to work with and knew the routine well.
Conversely, I have worked with self-represented sellers who did not know a thing about the sales process and assumed that I would handle all tasks for them, even after having them sign a “no brokerage relationship disclosure” and making sure that they understood it.
So, no, I do not participate in “flat-fee” or “limited service” real estate listings. Flat fee listings are a niche market and best left to those who specialize in them. We specialize in offering full-service to our clients and want other area Realtors to recognize when a seller is professionally, and well represented.
Great post. Not that there’s anything wrong with “flat-fee” listings, it’s just that they are a much different animal from the traditional full-service guys such as ourselves.
Jonathan,
Nothing wrong at all with any limited service listing. I just think many home sellers don’t realize that some agents may be scared off, although a good buyer’s agent will negotiate a fee based on the amount of service provided, and not worry about what a seller is paying or how the seller may represent themself. Personally, when an agent sees my name on a listing, I’d like them to know that they can expect professionalism from someone who does it for a living.