I am a new realtor and all of these flat-fee listing ads are bugging me. What if I have a client or customer who requests that I show them one of these homes? What's in it for me? Am I supposed to spend my valuable time, money, and fuel catering to some seller who isn't going to pay me a commission? Not to mention all of the risks and liabilities that could arise. What are your feelings about this and how do you handle it?

If there are one or two I say show them. But the objection you raise should serve as a warning to homeowners who do this sort of thing.

You serve your client. Have them sign an EBA agreement to secure your commission.

Write your Buyer Broker Agreement so that your Commission will be paid from the proceeds of any Sale.

In my state, commission talk should not be part of the offer contract UNLESS the buyer client agrees to it, even then though, its not always enforced if it goes before a judge.

I don't use the Buyers Agent contract often, in this case I do though.

Don't most flat fee listings offer a competitive coop commission based on percentage, but the flat fee part is for the listing side? That's how it is here. And that's how I used to do it. So you will get your usual percentage. What does it say exactly on the MLS for your compensation?

[quote=ColoBroker]Don't most flat fee listings offer a competitive coop commission based on percentage, but the flat fee part is for the listing side? That's how it is here. And that's how I used to do it. So you will get your usual percentage. What does it say exactly on the MLS for your compensation? [/quote]

Yes, sometimes they do, sometimes they don't.

In NC, everyone works for the seller unless you have an exclusive buyers agent agreement signed. I just hate to tell a buyer (and i'm not sure if it's legal for me to tell a buyer) that, "this seller isn't willing to pay me a commission and therefore i'd rather not show you this house".

I guess I should bring this up with my BIC and see what she says.

But I still have another concern. When these sellers pay (usually an out of town company) a flat fee for a MLS listing, who is checking the property for known defects? Who is making sure the square footage is correct? How reliable is the information that is submitted to MLS? Who is representing the seller? This just seems messy to me.

I saw an ad on craigslist today where a flat fee listing company was looking for local agents to list properties in the local MLS for them for a $100 fee per listing. So, if I were to sell one of these houses, who do I submit the offer to? The homeowner, the listing agent (who knows nothing about the house or the seller), or the flat fee company? I guess it would be treated as a FSBO. But then, what if the house turns out to be 500 sf smaller than what was listed in the MLS? Who is responsible?

I am new and I hope this isn't getting on the experienced agents nerves. I just want to know if anyone has had any experience with this.

For all intents and purposes the seller is representing the seller. The flat fee company may provide contracts but their involvement is going to be very minimal. Usually the buyer's agents have to call the seller to arrange showings, set up inspections, etc. The buyer needs to exercise due diligence in verifying the square footage, getting the seller's disclosure, etc.

we have an item in our buy sell agreement that puts the burden on the buyer to verfy dimensions during the inspection process.

Always serve the client first but there is nothing wrong with charging the buyer if needed. As long as you disclose.

Did your BIC offer any advice on this? After all, they have a vested interest in all this.

Ask your broker! I know around here the flat fees usually, USUALLY offer a competitive commission to buyers. They will indicate who to talk to for negotiations. Remember that the listing is still theirs, just at a different cost, so over here, everything else remains the same unless otherwise noted.