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Common Myths About
Flat Fee Listings

 

Myth #1:  In a slow market, "full service" agents give you an edge.

The Truth:  The added expense of a full service agent hurts your chances of selling in a slow market. In spite of what some agents may claim, it's your price that is the primary factor that determines your success. With a full service agent, you will need to have a higher asking price, which reduces your competitiveness. Home buyers are normally very immersed in the market and know what is a deal and what isn't. Flat fee listings show up in the MLS and public websites the same as full service listings do.

 

Myth #2:  You won't get the same exposure as "full service" companies provide.

The Truth:  If you use a virtual tour and multiple photos, you will actually get more exposure than many full service companies. Your home will be on over 250 websites including all of the major sites. Plus, you can continue marketing as a by owner seller. Often full service agents use the leads from your listing to sell other properties. All our leads we refer directly back to you.

 

Myth #3:  Flat fee listings don't sell.

The Truth:  Our largest source of new business consists of repeat clients and their friends. In fact, a large percentage of our clients are professional investors and real estate agents themselves. These listings sell every bit as well and in some cases faster than full service listings. We have found that success with our flat fee service depends on the same factors as selling with a full service agent. Price your property correctly and offer the recommended buyer's agent commission, and your chances of success are as good, if not better, than if you were listed with a full service company.

 

Myth #4:  Agents will not show flat fee listings.

The Truth:  The vast majority of our clients sell because an agent brought them a buyer. If anything, our clients are disappointed that they couldn't find their own buyer before an agent beat them to the sale. We have not found any agent willing to walk away from a commission because the property was a flat fee listing.  Some agents specialize in listing properties and don't have a buyer anyway. Some of these very unethical agents will even show up with straw buyers (another agent or friend) to give you the false impression that you will sell faster by listing with them. In truth, that type of agent will just put your property back on the same MLS, their straw buyer will magically disappear, they will then just move on to the next unsuspecting seller.

 

Myth #5:  Flat Fee companies provide no services.

The Truth:  We process thousands of emails, phone calls, listing updates and property inquiries on behalf of our clients on a regular basis. Whenever we receive an inquiry from a private party, we send that lead directly back to you so you'll have a chance to sell with no commissions. Such services are rarely, if ever, provided by full service companies.

 

Myth #6:  Full service companies offer you error and omission insurance.

The Truth:  Full service companies do have error and omission insurance. However, this insurance protects them—not you. By the way, we also have error and omissions insurance.

 

Myth #7:  The buyer's agent will have to do all the work.

The Truth:  An agent that complains about doing all the work is simply creating a false impression. Whenever an agent claims they will be doing more work, you should ask them—what extra work are they referring to? They have to present their offer and open escrow—exactly the same as any other transaction. On the contrary, many agents have told us they appreciated not disputing with a listing agent, as is common in the industry. Being able to use the escrow company they are used to working with actually makes their job easier. Eliminating the listing agent from the transaction also works to simplify the process. We provide you with all your seller's disclosures, which you are obligated to complete even if listed with a "full service" agent. If you need clarification with your disclosures, you can call us, and we will be glad to help.

 

Myth #8:  You will get 16% more for your home if you list with a REALTOR®.

The Truth:  According the National Association of REALTOR's website they claim the primary reason for this statistic is "getting full market exposure." When listed with our company you get the same full market MLS exposure as a full service REALTOR® provides. And remember, we are REALTORS®.