Flat Fee MLS Listing Service VS. Traditional Agencies
Updated: May 19
Selling your house is a tremendous financial decision to make. There are plenty of variables involved including the market, time of year, amount of equity you have and more. One thing never changes and that is the options you have to sell your house. You can sell by owner or with a traditional 6% company. However Flat Fee companies have been emerging and taking over for years. Today lets examine the differences between a flat fee agent and traditional agent.
Let's start with the biggest and really only difference in my opinion. Commission. Traditional agencies charge 6% on the sale of your home. On a $400,000.00 home sale you will be paying $24,000.00 at closing. If you sold with a flat fee company like 1 Grand Realty you would only pay $10,600.00 at closing. At closing most sellers actual receive a check because they have enough equity in their home so I think they often don't even notice. However if you had to go to closing and physically write a check which amount would you rather shell out? I think that is the mindset sellers need to have prior to listing.
The biggest argument I hear to combat that difference is that traditional realtors can sell your house for more money. That just isn't the case and every home is different. The price of a home depends on the house itself, location, and the market. A realtor is there to assist from start to finish to maximize the sale price of your house. Negotiations are the biggest area where a realtor can be of value and is what separates the elite realtors. Most home sellers just hire who they know but it important to do your research prior to selling.
Most flat fee companies and traditional real estate companies do the exact same things. The biggest question to ask a flat fee company is if they are full service or not. Also ask if interior and aerial video is included like 1 Grand Realty. Often those services are extra costs. Make sure there are no upfront fees as well. This is your biggest investment and again think of it like you are writing a check at closing instead of receiving one. There are plenty of things you could do with an extra $13,400.00 I would imagine.