Common Myths About Flat Fee MLS Listings

Myth #1 In a slow market "full service" agents give you an edge.

The Truth: The added expense of a full service agent hurts your chances of selling in a slow market. In spite of what some agents may claim it's your price that is the primary factor that determines your success. With a full service agent you will need to have a higher asking price reducing you competitiveness. Home buyers are normally very immersed in the market and know what is a deal and what isn't. Flat fee listings show up in the MLS and public websites the same as full service listing do.

Myth #2 You won't get the same exposure as "full service" companies provide.

The Truth: Our customers get more exposure than many full service companies offer, plus you can continue marketing as a by owner seller. Some full service agents won't even allow their listing to go out to the internet. Of the agents that do allow their listings to go to the internet many won't allow your address to show because they are afraid they won't get the phone calls if someone comes directly to you. Often full service agents use the leads from your listing to sell other properties. All our leads we refer directly back to you.

Myth #3 Flat fee listings don't sell.

The Truth: Our largest source of new business consists of repeat customers and their friends. In fact, a large percentage of our customers are professional investors and real estate agents themselves. These listings sell every bit as well and in some cases faster than full service listings. We have found that success with our flat fee service depends on the same factors as selling with a full service agent. Price your property correctly and offer the recommended buyer's agent commission and your chances of success are as good if not better than if you were listed with a full service company.

Myth #4 Agents will not show flat fee listings.

The Truth: We have not found any agent willing to walk away from a commission because the property was a flat fee listing. Certainly some unethical agents will threaten to boycott your listing if you don't list with them. However, these agents mostly specialize in listing properties and don't have a buyer anyway. Some of these very unethical agents will even show up with straw buyers (another agent or friend) to give you the false impression that you will sell faster by listing with them. In truth, that type of agent will just put your property back on the same MLS, their straw buyer will magically disappear, they will then just move on to the next unsuspecting seller.

Myth #5 Flat Fee companies provide no services.

The Truth: We process thousands of emails, phone calls, listing updates and property inquiries on behalf of our customers on a regular basis. Whenever we receive an inquiry from a private party we send that lead directly back to you so you'll have chance to sell with no commissions. Such services are rarely if ever provided by full service companies. In addition we regularly confront anti-trust violations that negatively effect you as a consumer of real estate related services. And since many "full service" agents are going to charge you upwards of a hundred times or more than what we charge what are they really doing for you?

Myth #6 Full service companies offer you error and omission insurance.

The Truth: First of all, we HAVE error and omission insurance. Full service companies also have error and omission insurance. However, this insurance protects brokers, not you.

Myth #7 The buyer's agent will have to do all the work.

The Truth: An agent that complains about doing all the work is simply creating a false impression. A buyer's agent should not be giving legal or real estate advice to the seller ever! Whenever an agent claims they will be doing more work you should ask them what extra work are they referring to? They have to present their offer exactly the same as any other transaction. On the contrary, many agents have told us they appreciated not disputing with a listing agent as is common in the industry. Being able to use the agencies they are used to working with actually makes their job easier. Eliminating the listing agent from the transaction also works to simplify the process. We provide you with all your seller's disclosures, which are you are obligated to complete for your buyer.

Myth #8 You will get 16% more for your home is you list with a full service REALTOR.

The Truth: According the NAR website they claim the primary reason for this statisic is "getting full market exposure." When listed with our company you get the same full market MLS exposure as a full service REALTOR provides!