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#338011 - 05/14/10 10:40 PM Realtors offering flat fee services
The New Guy Member Registered: 02/10/10 Posts: 44 Loc: USA	Recently I've seen many Realtors offering flat fee services. What are you thoughts about this? Would this be a business model you might want to follow?
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#338014 - 05/14/10 11:37 PM Re: Realtors offering flat fee services [Re: The New Guy]
navarac Veteran Member Registered: 01/19/06 Posts: 994 Loc: New Jersey	Like what services? I am not aware of Realtors offering flat fee services at all in my area. There are a few low-level companies offering FSBO's a flat fee MLS entry service. But I'm not aware of individual Realtors offering any flat fee services. Be more specific. What services? And what flat fees?
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#338017 - 05/15/10 12:50 AM Re: Realtors offering flat fee services [Re: navarac]
super realtor Major Contributor Registered: 05/01/05 Posts: 8478 Loc: georgia	All kinds of business models out there for every type of consumer. Some have a MLS FSBO Plan for 399.00 and then if they upgrade the plan later after paying upfront they will credit off the commission at closing. Others just charge a flat fee period and others rebate back commission to buyers who purchase through them. Rather than do tons of volume for cheap I work with a select group of clients closely but I do commercial and the paychecks are much larger.
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#338023 - 05/15/10 07:44 AM Re: Realtors offering flat fee services [Re: super realtor]
ColoBroker Major Contributor Registered: 11/03/07 Posts: 2335 Loc: Northern Colorado	I did it for awhile for $1000 + 3% and was full service. But anymore it's so tough keeping deals together to only get paid $1000. So I went back to a more traditional model. _________________________
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#338046 - 05/15/10 12:05 PM Re: Realtors offering flat fee services [Re: ColoBroker]
The New Guy Member Registered: 02/10/10 Posts: 44 Loc: USA	ColoBroker - How well did this work out for you? Was that $1000 paid upfront or at closing?
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#338082 - 05/15/10 06:17 PM Re: Realtors offering flat fee services [Re: The New Guy]
The New Guy Member Registered: 02/10/10 Posts: 44 Loc: USA	Would I need brokers permission to charge a flat fee? I was thinking something like $500 due at listing + 1/2 of 1% of sales price at closing.... Edited by The New Guy (05/15/10 06:17 PM)
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#338087 - 05/15/10 07:18 PM Re: Realtors offering flat fee services [Re: The New Guy]
ColoBroker Major Contributor Registered: 11/03/07 Posts: 2335 Loc: Northern Colorado	I took it at closing. Upfront I felt like I would be just asking for trouble if the property didn't sell. Don't do it though New Guy. It's not worth it. Your sellers will want everything for nothing. They won't understand they get what they pay for. Though I did alot more for $1000 then a lot of agents do for much much more. I didn't like it. I stopped being motivated to really do a good job for listings. Especially after I started getting full commission REO properties. You would need your brokers permission depending on your agreement with them. I was my own broker and owned my own company. Therefore anything goes. _________________________
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#338091 - 05/15/10 07:56 PM Re: Realtors offering flat fee services [Re: ColoBroker]
The New Guy Member Registered: 02/10/10 Posts: 44 Loc: USA	Thanks, Seems like where I am located everything is REO's (including expireds).... and only a handful of agents have those listing and since I have only been in the business 5 months can you tell me how exactly you got into listing REO's?
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#338092 - 05/15/10 08:32 PM Re: Realtors offering flat fee services [Re: The New Guy]
super realtor Major Contributor Registered: 05/01/05 Posts: 8478 Loc: georgia	The easiest way would be for you to go work for one of the REO kings in your area and work the buyers. You could make over a 100k that way. Just starting out you probably don't have the knowledge,resources (money),and credibility(time in the business) for banks to give you listings left and right. Some of these REO brokers are owed up to 40k at a time in re-imbursements for the banks for doing rekeys,lawn maintenance,trash outs,etc.
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#338093 - 05/15/10 08:55 PM Re: Realtors offering flat fee services [Re: super realtor]
Doin' bpose Major Contributor Registered: 01/26/09 Posts: 2961 Loc: Old Dominion	I have to point out that REO commissions are often much lower than traditional commissions. REO is attractive to many right now, but it is no cake walk-the paperwork is very daunting-and Super pointed out there are financial implications of having to pay out large sums of money during listings. Now your job is also to be repaid just to be EVEN. It is a whole other job, that pays nothing. I am not discouraging you just saying work close contacts, make more solid regular contacts and investigate other ways of making money in RE. REO will fall away as the next years come to us and if you are focused only in that niche you will be flat footed. Keep exploring and GOOD LUCK. Edited by Doin' bpose (05/15/10 08:56 PM) _________________________ Trust your Maker. Watch your manager.
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#338094 - 05/15/10 09:17 PM Re: Realtors offering flat fee services [Re: The New Guy]
Perky_REALTOR Mod Squad Major Contributor Registered: 11/27/06 Posts: 7685 Loc: PA	Originally Posted By: The New Guy Would I need brokers permission to charge a flat fee? I was thinking something like $500 due at listing + 1/2 of 1% of sales price at closing.... Because the broker sets the policy - all policy - at his/her office and expects agents under him/her to abide by that policy. _________________________ Lake Wallenpaupack & Northeast PA Real Estate Blog Lake Wallenpaupack / Northeast PA Poconos Homes & Property For Sale Sell Your Pike / Wayne County PA Home ~*~ Karen Rice REALTOR - About.Me Profile
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#338096 - 05/15/10 10:09 PM Re: Realtors offering flat fee services [Re: Perky_REALTOR]
ColoBroker Major Contributor Registered: 11/03/07 Posts: 2335 Loc: Northern Colorado	At this point New Guy Super is right. Go to work either for an REO king or at least at the same company they are in. It's very hard to get in to the REO business now. I'm not in very far either. Though the one REO company I get listings from up until last week paid traditional commissions. I had 8 years of experience before I started even thinking about the REO world and I owned my own small company and was managing broker. And because of that it was easier then you would have it only having 5 months experience. I won't spell out anymore here, but if you want to know how it starts go over to the REO/BPO section and read alot. _________________________
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#338215 - 05/17/10 11:23 AM Re: Realtors offering flat fee services [Re: ColoBroker]
The New Guy Member Registered: 02/10/10 Posts: 44 Loc: USA	So today I went to my broker about this. She said we can do it but she "really, really, really dislikes those business practices" She mentioned that she does not like the fact those types of agencies can make money providing those services over a "full" service broker I just don't understand... Why can't you provide the same services at a cheaper rate. You would have more clients(volume) which will bring more moeny etc... Because really since I have been in real estate(6-7 months) I have not spent much time on listings... The listings I have all have been under contract within 30 days and sold within 60 days. I've found that the price determines how fast something sells (as long as you price them right they will move fast) Because I think I can still provide the same level of service at a cheaper rate. How do you all feel about these flat fee services? Edited by The New Guy (05/17/10 11:24 AM)
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#338223 - 05/17/10 11:45 AM Re: Realtors offering flat fee services [Re: The New Guy]
Perky_REALTOR Mod Squad Major Contributor Registered: 11/27/06 Posts: 7685 Loc: PA	I think you need to find a Housepad.com broker and be happy there. _________________________ Lake Wallenpaupack & Northeast PA Real Estate Blog Lake Wallenpaupack / Northeast PA Poconos Homes & Property For Sale Sell Your Pike / Wayne County PA Home ~*~ Karen Rice REALTOR - About.Me Profile
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#338227 - 05/17/10 12:03 PM Re: Realtors offering flat fee services [Re: The New Guy]
estatereal Major Contributor Registered: 01/27/07 Posts: 2779 Loc: LAND OF THE FREE!	Originally Posted By: The New Guy So today I went to my broker about this. She said we can do it but she "really, really, really dislikes those business practices" She mentioned that she does not like the fact those types of agencies can make money providing those services over a "full" service broker I just don't understand... Why can't you provide the same services at a cheaper rate. You would have more clients(volume) which will bring more moeny etc... Because really since I have been in real estate(6-7 months) I have not spent much time on listings... The listings I have all have been under contract within 30 days and sold within 60 days. I've found that the price determines how fast something sells (as long as you price them right they will move fast) Because I think I can still provide the same level of service at a cheaper rate. How do you all feel about these flat fee services? time has proven that this method does not work. the market is the best test. if it were the best way to sell a house, it would be used more often than not. look at the wheel. it words best. that is why the wheel is used over the square. market tested and proven. sure, i could have used a better analogy, but, oh well.
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