Recently the State of Colorado made some rulings that will most likely do away with the FSBO Flat Fee entry only MLS listing services. Other states may follow suit. This appears to be an attempt to return to the old rigid six percent MLS listing model, a more traditional approach, where the six percent is usually divided with three percent going to the Listing Broker and three percent to the Buyer Broker.
Flat Fee Services offers the seller tremendous savings and come in a variety of packages. A Flat Fee 4 phase Essential Only listing could really save you some money. You pay as you need the service and only for the basics, no frills.
There has always been a segment of Realtors who clung to charging six percent and another segment of Brokers who tried to give the consumer a fair service for a fair price.
So What will the Ruling mean to you? Could be you’ll pay exorbitant commissions to get your property in MLS.
The alternative is to find Brokers in your area who are doing something like what we’re doing with 4 phase Essential Flat Fee listings. See if you can negotiate a 4 phase Essential Only listing. What’s that?
There really are only four Essential phases of a real estate transaction:
1. List with Multiple listing service
2. Have a Broker write and/or review your contract and counter offers
3. Have a Broker act as a transaction coordinator and follow all the myriad details, dates and deadlines of closing to ensure contract obligations are met.
The Broker will keep you informed on contractual obligations and write amendments to the contract as needed.
4. Have the Broker oversee the details of closing.
The Broker is usually paid a success fee at closing. That’s it. In a nut shell, that’s what’s involved in selling Real Estate.
These 4 phases are the components of a real estate deal. If you paid for each service separately and paid a Flat Fee rather than a percentage of the sales price you would save a ton of money.
Generally you’ll also get listed on:
• The Broker’s website
• Hub sites
• Various publication
There’s a lot of other stuff involved in the sale of a property but it is not part of the Essential 4 phases.
There are additional tasks such as:
• Setting Showings
• Lock boxes
• Open houses
The Seller can take on more responsibility and handle some or all of these tasks. None of these tasks require a license. Are these five tasks worth three percent? On a $200,000 dollar sale that’s $6,000 dollars. If you could pay a Flat Fee for each of the 4 essential phases and pay separately as you needed the service, you’d save thousands of dollars.
So I’m suggesting you find a Broker, in your area, who is willing to negotiate and break away from the traditional six percent listing.
Where do you find Brokers who are willing to do some sort an Alternative listing?
Look at advertising online and yellow pages for Flat Fee, discount, FSBO, pay less Brokers in your area. Call the local Multiple Listing Service and ask who provides alternative services. You can find someone who is willing to work with you Essential four phase Flat Fee listing is the approach my company is taking to meet the requirements of a restrictive state law. We will continue to offer considerable savings.
Let me summarize and reiterate… You do not have to pay six percent to get a home sold through the MLS. So why would you?
If you, as the seller, are willing to take on more responsibility for the marketing of your property then take the 4 Phase Essential listing ideas to some Brokers, in your area, and negotiate a deal that’s a Win-Win for both of you.
I would not be surprised to see some antitrust and restraint of trade lawsuits come from these ruling that attempt to stymie Broker creativity in their offerings.
Copyright © Wee Dilts 2010