Flat Fee Discount Brokers? Do They Save You Money Or Cost You Money? Article

Flat fee Mls or fixed fee Mls refers to the practice in the real estate industry of placing pertinent information about a property for sale into the local database of the Multiple Listing Service for set fees or a dollar amount as opposed to commission based on the sales of the price of the property.

Fees can range anywhere from $200-$650. Realtor commissions are based on 3%-6%. 3% to list your property and 3% to a co broker for bringing buyer. These numbers are not set in stone, especially in today's current real estate market they are negotiable. In the past when the real estate market was flowing these flat fee brokers were popping up by the hundreds everyday. The claim is to save you big bucks because of paying a one time flat fee of listing your property on the Mls, instead of paying a Real Estate Agent a commission to do so. Savings can be substantial 3% .

When using a flat fee broker it is almost as if you were doing a FSBO (for sale by owner). If you find your own buyer than you could also eliminate the co brokers 3% and save additional money. The potential downside to this is that you are representing your self and will need to arrange for services such as a real estate attorney or title company to handle the closing. If you are new to this it can be overwhelming.

In my experience as a top producing licensed Realtor in Florida I try explain the advantages of using the flat fee services compared to what services I offer my clients. You pay for what you get. If you have tried to sell a home as I an FSBO , you will know exactly what I am talking about.

I will outline some of the key differences why you Should use a Realtor.

A seasoned Realtor will guide you step by step through the entire process from start to finish.
How to prepare your house with curb side appeal.
The ability to discuss with other Realtors the results of showings and what improvements need to be made.
Dealing with buyers instead of you (the owner) is extremely significant.
Buyers are trying to gain advantage in the negotiation process looking for reasons to lower the value and signs from an owner that he is having financial difficulties.
Marketing the property. Most FSBO do not have the tools to market the property, the MLS itself will not sell a property.
Determining todays market value for selling your property based on a current detailed comparative market analysis ( CMA) .

These are just some of the reasons why I think you should use a Realtor. Yes, in the short term you will save some money by listing your property with a flat fee broker, but I believe with current market conditions you can find an experienced Realtor who will take less than the 3% to list your property and give you all the benefits you get with his/her experience and the avenues of promoting your home.

What sells a home in todays market? The right price and doing your research CMA (comparative market analysis of what has sold in the past 30-90 days and compete directly with the lowest house listed in your area with compatible square footage , features etc.