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#393077 - 10/26/11 05:54 AM Re: flat fee listing agents [Re: pikes peak]
lindenmoe Veteran Member Registered: 07/19/10 Posts: 816 Loc: jersey city	Originally Posted By: pikes peak Fee for service can be a viable model in real estate. Many professionals from accountants to attorneys and mechanics use it. Depending on your states minimum service laws, if there are any, I have heard of very successful agents in parts of the country, primarily the east coast, who make an excellent living from it. non sense..im east coast..name one..i'll wait.. first of all flat fee is usually like $1,000 per listing no matter the price.. so they would have to take over 100 listings..and sell them all to equal me taking 10 listings.. In my opinion they try to de-value our services and our industry.. So I will stick with my they are losers statement.. There was once a giant company well funded on the east coast that had this discount model.. google FOXTONS..where are they now..? ooooh I dont know BANKRUPt..and I loved watching them crash _________________________ http://www.gardenstatehomesearch.com/ http://www.facebook.com/linden.moe Search Downtown Jersey City Condos http://LindenMoe.com Search Hoboken Homes for sale
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#393102 - 10/26/11 11:03 AM Re: flat fee listing agents [Re: KWAtlanta]
PA Roadkill Major Contributor Registered: 11/15/06 Posts: 2050 Loc: The Middle of the Interstate	Foxton's tried to take their business model that was successful in London (England, not Ontario) and move it here. They had salaried agents but the American public never grabbed hold of the concept. www.foxtons.co.uk is a pretty neat website _________________________ Broker-Owner Thirteen Years REO Experience GRI,CRS,CRB,e-Pro Some days I feel like the bug, other days I feel like the windshield
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#393105 - 10/26/11 11:12 AM Re: flat fee listing agents [Re: KWAtlanta]
ColoBroker Major Contributor Registered: 11/03/07 Posts: 2335 Loc: Northern Colorado	I think they have their place. I used to be one until I decided it wasn't worth my time. And especially now with all battles we have to fight to win the war on selling a house it's not worth it. But if I decided to hang up my agent cap, put my license on ice and do fix and flips you bet I would hire the cheapest company I could find to just put it on the MLS with some pictures. Price and some curb appeal for that price range is what sells. Most consumers don't know much about what it takes to get a transaction done so the traditional commission agent sometimes works better then a flat fee limited service listing (depending on the agent as we all know there are some agents that are worse then flat fee limited service companies). But there are a few folks out there that recognize that price is what sells in this area and are willing and able to do themselves what the limited flat fee service will not do in order to save a few thousand. Edited by ColoBroker (10/26/11 11:15 AM) _________________________
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#393112 - 10/26/11 01:06 PM Re: flat fee listing agents [Re: lindenmoe]
pikes peak Major Contributor Registered: 12/15/04 Posts: 2744 Loc: CO	The agent I spoke to consistently carried over 200 listings. The listing price was determined by an appraiser paid for by the seller. The contract and closings were handled by the attorney. The agent placed it into the MLS and depending on service demands by the seller, did the marketing.
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#393125 - 10/26/11 02:30 PM Re: flat fee listing agents [Re: pikes peak]
Hunter 308 Veteran Member Registered: 07/22/10 Posts: 948 Loc: Canada	Pikes, Thats the funniest joke I've heard in a long time. Call be a lazy [censored] but I've been taking care of 4 hot listings and 3 buyers and the issues I run into and the time involved to deal with it all is out of this world.
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#393133 - 10/26/11 04:02 PM Re: flat fee listing agents [Re: Hunter 308]
pikes peak Major Contributor Registered: 12/15/04 Posts: 2744 Loc: CO	The agent was covering several states, similar to the company/agent that covers mostly western states (see link). The difference being, that the eastern states used mainly attorneys in their contractual transactions and closings, freeing up the agents time. Obviously, states like mine with minimum service requirements, make such a hands off service almost impossible. http://www.congressrealty.com/?gclid=CNeln7OIh6wCFQUKKgodGkwj_Q p.s. since all fees are up front, unless other payments from the seller are agreed to, there isn't much risk to the agent.
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#393134 - 10/26/11 04:09 PM Re: flat fee listing agents [Re: Hunter 308]
Dodger52 Member Registered: 10/14/11 Posts: 54 Loc: Montana	Flat fee brokers have their place, the issue I have is when the flat fee is too low. I used to figure I spent $1,800 to $2,000 per transaction (total exp / total transaction sides). If I was charging a flat fee it would have had to be darn close if not at the commission % our market would support to justify staying in the business. I really think that 5-7% is a much easier sell than, my fee is $14,000 for your $200,000 home. A flat fee broker can't offer what I do for any less, If they don't charge more they can't afford to stay in the business. Yeah I get that the business model says they are going to make more money on the buy side, but so does mine. If you charge $500 per listing that means that each buyer sale is now costing you $3,100 to $3,500 per. How long are you going to put in the hours it takes to do this business when your walking away with a $25,000 annual paycheck. (math:20 sides half being buyers with an average commission of $6k)(btw there is no broker split figured in) My best seller presentation against flat fees was "why would you trust your largest investment to a broker that can't figure out how to keep his business investment from losing money." just my two cents! _________________________ Dodger52 (Chris) Prudential Montana Real Estate www.MT-RE.net www.facebook.com/MissionValleyMTHomes
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#393138 - 10/26/11 05:11 PM Re: flat fee listing agents [Re: KWAtlanta]
super realtor Major Contributor Registered: 05/01/05 Posts: 8479 Loc: georgia	It's easy to crush a flat fee lister. Mr. Seller unlike a flat fee company I don't get paid until it closes.The flat fee person charges the money upfront.They are just like FSBO companies.If the service is so great Mr. Seller and is guarantee to work why don't they get paid only when they perform?? Sounds like they will just take your money and when you have an issue or problem just hand you off to someone else. What you pay for in commission is the broker/agents network and keeping the contract together until closing.That is where the money is earned.Anyone can charge a flat fee and stick it on the MLS and that doesn't do much. The flat fee company also won't fight you on your list price and will tell you what you want to hear because they are getting the money upfront.If it sits on the market forever it can cost you money not having it priced correctly.Upfront money and sign exposure for them to get more flat fee listings and loss in asking price and time and aggravation to you because nobody told it to you straight on what it would take to sell. I don't even do residential anymore and I haven't for years but it is easy to rip apart the flat fee model without even going into statistics. It's simple in that whoever makes the best points and presents the best will win over the mind of the seller and get the business. Broker on here has been saying the industry is changing with flat fee for over 6 years and all that has happened is all these flat fee companies have went by the wayside. The sky never fell and I am still taking 7 to 10% listings in commission.
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#393195 - 10/27/11 06:22 AM Re: flat fee listing agents [Re: super realtor]
lindenmoe Veteran Member Registered: 07/19/10 Posts: 816 Loc: jersey city	Originally Posted By: super realtor It's easy to crush a flat fee lister. Mr. Seller unlike a flat fee company I don't get paid until it closes.The flat fee person charges the money upfront.They are just like FSBO companies.If the service is so great Mr. Seller and is guarantee to work why don't they get paid only when they perform?? Sounds like they will just take your money and when you have an issue or problem just hand you off to someone else. What you pay for in commission is the broker/agents network and keeping the contract together until closing.That is where the money is earned.Anyone can charge a flat fee and stick it on the MLS and that doesn't do much. The flat fee company also won't fight you on your list price and will tell you what you want to hear because they are getting the money upfront.If it sits on the market forever it can cost you money not having it priced correctly.Upfront money and sign exposure for them to get more flat fee listings and loss in asking price and time and aggravation to you because nobody told it to you straight on what it would take to sell. I don't even do residential anymore and I haven't for years but it is easy to rip apart the flat fee model without even going into statistics. It's simple in that whoever makes the best points and presents the best will win over the mind of the seller and get the business. Broker on here has been saying the industry is changing with flat fee for over 6 years and all that has happened is all these flat fee companies have went by the wayside. The sky never fell and I am still taking 7 to 10% listings in commission. I suggest you guys read the above post..twice..and the one above it.. You come in my market with that flat fee stuff.. I will crush you.. you will go broke I will ridicule you..to death.. I will enjoy watching you go bankrupt.. There is only but so much you can charge for a flat fee listing.. Here's why..its a race to ZERO..hahahahsa fsbo.com got 3 brokers in my market competing for who can flat fee it the lowest..lol.. I love that.. 1. desperate flat fee guy says I do it for $500 next says I do it for $400 next one says I do it for $300 smells desperate..to me..hahahahah and SOMEBODY gotta input all those listings in the MLS.. so you an admin..your salary will reflect your an admin.. oh so you will pay an admin? yikes..there goes your profit.. I have laughed at 5 different flat fee companies who came here and went broke.. come on in ..I need a good laugh.. _________________________ http://www.gardenstatehomesearch.com/ http://www.facebook.com/linden.moe Search Downtown Jersey City Condos http://LindenMoe.com Search Hoboken Homes for sale
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#393226 - 10/27/11 10:14 AM Re: flat fee listing agents [Re: super realtor]
pikes peak Major Contributor Registered: 12/15/04 Posts: 2744 Loc: CO	"The flat fee company also won't fight you on your list price and will tell you what you want to hear because they are getting the money upfront.If it sits on the market forever it can cost you money not having it priced correctly." Remember, the listing agent is not determining the price, it's the appraiser and the seller can make adjustments depending on their motivation.(under my scenario mentioned above)
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#393233 - 10/27/11 11:37 AM Re: flat fee listing agents [Re: KWAtlanta]
Home Seller Guru Member Registered: 10/02/09 Posts: 207 Loc: Salt Lake City, UT	Spend $1800 to $2000 per listing? Really? What the heck are you doing? Almost all marketing is now on the internet and doesn't take that long to get it all posted. I know when I started in this business 10 years ago, I asked "how do you get listings sold?". I was told over and over again - pricing. Price it right it will sell. Oh and also make sure it's cleaned up good. If you have a good flat fee agent that will provide the pricing information AND the sellers take that advice, that listing will sell as fast as someone charging 4 times as much. It's not rocket science to sell a house. Oh and as for bashing the flat fee agent at your presentation? Well several agents here got to pay big fat settlements for doing just that. Not only is it a violation of the Code of Ethics but without any real proof to the claims it's also slander and libel. Ahh - this is why I deal only with buyers. Agents aren't as nasty to each other on the buying side. LOL
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#393234 - 10/27/11 11:46 AM Re: flat fee listing agents [Re: lindenmoe]
pikes peak Major Contributor Registered: 12/15/04 Posts: 2744 Loc: CO	"I will crush you.. you will go broke I will ridicule you..to death.." You are such a class act!
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#393240 - 10/27/11 02:11 PM Re: flat fee listing agents [Re: Home Seller Guru]
Vermont Major Contributor Registered: 04/12/08 Posts: 4726 Loc: Vermont's North-East Kingdom	Originally Posted By: Home Seller Guru Ahh - this is why I deal only with buyers. Agents aren't as nasty to each other on the buying side. So, do you not deal with Listing Agents at all . . . . just FSBOs ? _________________________ Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#393253 - 10/27/11 03:54 PM Re: flat fee listing agents [Re: KWAtlanta]
Home Seller Guru Member Registered: 10/02/09 Posts: 207 Loc: Salt Lake City, UT	Listing Agents are much nicer when you have the buyer for their listing. LOL Then they like you - well most of the time. LOL But when you are competing against them for a listing they are nasty and lie like rugs. There was one agent in town that was also going after FSBOs when I was doing that a few years ago. He would pull up my last 2 months production on this computer and say "see this is all the production there is for the last year - why go with them?" then he would pull up his production for the last 2 years and claim it was for one. I found out from a couple of people that did sign with me. One of them said something about - well even though you've only sold 8 houses in the last year we still would like you to sell our home. Actually when I think about it, it was this type of behavior from other agents that has completely soured me on anything to do with listings and getting involved with the local association. I find a lot of listing agents arrogant and jerks. They only do 1/4 or 1/2 of the production they claim to do and are basically incompetent. Oh yeah - I said that out loud. Ah therapy.
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#393259 - 10/27/11 04:36 PM Re: flat fee listing agents [Re: Home Seller Guru]
pastmember Member Registered: 01/22/06 Posts: 387 Loc: USA	Either several people posting on this thread don't belong to the NAR or they just don't take our code of ethics very seriously
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