Flat Fee vs Traditional Brokers
The Difference
You can get your home listed on the same database and websites that every other home is listed on without paying a real estate agent 5 to 6 percent commission.
That database is the MLS (Multiple Listing Service). It’s the database that real estate agents use to search listings for their buyers. It’s a proven fact that MLS-listed properties sell faster and for more money than non-MLS listed “for sale by owner” properties.
Listing agents primarily depend on listing the home on the MLS to find a buyer and most buyers come from buyer’s agents and from finding the home on the internet.
Don’t let a traditional real estate broker take a hefty percentage of your sale price just to list your home on the same MLS database we have access to. A listing agent charging 5 to 6% commission may just put a sign on the front yard, list it on the MLS and wait for some buyer’s agent or the buyer itself to find your home.
Why pay a traditional brokerage firm an enormous commission when we primarily do the same work for a fraction of the cost?
For decades, the traditional real estate model has not been serving the consumers’ best interests. Let’s say you are selling a $300,000 home. If you pay a 5% commission, typically, 2.5% would go to the buyer’s agent and 2.5% would go to the listing agent. In this example, that would total around $15,000 in commissions you would need to pay out at closing. However, with ListHomeFlatFee.com, instead of paying the traditional 2.5% to the listing agent, you now only pay a small upfront flat fee. That’s a savings of approximately $7,000 in this scenario.
| Service | ListHomeFlatFee.com | Traditional 5%-6% Brokerages |
|---|---|---|
| ServiceCommission Offered to Buyer’s Agent | ListHomeFlatFee.comTypically 2%-3% of selling price or staggered percentage for properties over $1,000,000 | Traditional 5%-6% BrokeragesSame |
| ServiceProperty Listed on MLS Database | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceProfessional 6’ Tall Yard Sign | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceProperty Listed Online on Third-Party Real Estate Searching Sites | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceAbility to Sell Your Home by Owner and Not Pay a Commission to Buyer’s Broker | ListHomeFlatFee.comYes, only if a buyer’s broker is not present on the transaction | Traditional 5%-6% BrokeragesNo, a traditional brokerage will still take its full 5% - 6% commission regardless if there is no buyer’s broker present |
| ServiceProvide Market Analysis | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceBuyer’s Agent to Show Listing | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceCan List Property Without Coming to Your Home | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesDepends on agent |
| ServiceProvide All State-Required Documents | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceCancel at Any Time for Any Reason | ListHomeFlatFee.comYes, listing fee and additional options costs are non-refundable | Traditional 5%-6% BrokeragesTypically no, depending on the agent you may be responsible for incurred costs like signage, marketing, cancellation fee or have to wait till the contract term is over |
| ServiceAssist Seller in Contract Negotiating | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceAnswer Client’s Questions Relating to the Offers, Counteroffers, Notices and Contingencies | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
| ServiceShowing Appointment Scheduling | ListHomeFlatFee.comYes | Traditional 5%-6% BrokeragesYes |
Calculate Your Savings
The United States Department of Justice Antitrust Division has reported that new sales models can reduce consumer home sales costs “by thousands of dollars.”
From the United States Department of Justice website:
Most consumers want to make as much money as possible on the sale of their home and spend no more than necessary when purchasing a home. In many cases, the standard broker’s commission can offset a portion of the equity value that has been building up in a seller’s home or push the price of a home beyond a buyer’s purchasing power. Consumers who want to perform some of the steps involved in selling a home can reap significant financial savings by purchasing only those real estate brokerage services they actually want.
From the Federal Trade Commission (FTC) website:
More and more, consumers can choose among real estate professionals who do business on a “fee per service” basis and others who provide the full complement of services. Because buying a home is the single most important purchase many consumers will make, the Federal Trade Commission has enforced antitrust rules in the real estate business to make sure that increased competition continues to lead to more choices, better prices and stepped-up services for buyers and sellers.