How a Flat Fee Listing Differs From a Full Service Realtor®
In a standard real estate transaction with a Realtor®, the seller agrees to compensate the Realtor® a percentage of the sale price, typically 6% for a house. The Realtor® then places your property in the Multiple Listing Service, offering half(3%) of their commission to any agents that finds a buyer for the property.
In a flat fee MLS listing, you pay a broker a flat fee to place your listing into the MLS. The broker will still offer the 3% to any agents who find a buyer, as required by most Multiple Listing Service boards (you pick the commisson you would like to offer during sign up). The savings would be in the form of 3% of the sale price, minus the fee you paid up front.
The Savings Can Be Great!
If you were sell your home for $200,000, using a traditional Realtor® you would have to pay $12,000 in commission, $6,000 to the Realtor® you listed your property with, and $6,000 to the agent who found a buyer for you.
If you used a flat fee listing, your commission owed would be $6,299, $299 for the flat fee MLS listing broker (using our Silver program as an example), and $6,000 to the agent who found a buyer for you.
By using a flat fee MLS service instead of a full service agent, you would save $5,701!
Find a Buyer Yourself, Keep you Buyer's Agent Commission!
As an added benefit, many flat fee brokers, let you keep the 3% commission a buyer's agent would receive if you found a buyer yourself. Most full service Realtors® would keep the full 6% commission for themselves in that situation!
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