So you are getting ready to list, or relist your property with a professional REALTOR®, here is a rundown on what to look for as your options.
This is a company that charges a flat fee to provide you the services of a broker to assist you in selling your home. This is only an option if you are willing to do most of the work yourself. They do the minimum amount of work to place your home in the local Multiple Listing Service (MLS). After that you’re on your own to market, show, and hold open houses. You have to determine your BAC (what an agent who sells your home gets) which can determine how many showings you get. If your property doesn’t sell, you’re out their fee and all your time and money spent marketing the property.
This is an agency where you will have an assigned agent to work with you to list your property and only charge you a discounted fee (typically 5 to 6 %) if your home sells. They will provide you the necessary service to list your home in the MLS, usually show your home or provide a method for other agents to show the home, and maybe even do some limited marketing. They might do open houses if you request it but probably won’t offer that willingly. They will list on the MLS at a reduced BAC rate depending on what the commission is set at, which can sometimes impact the amount of showings. The better ones will offer some extra marketing such as virtual tours but don’t count on it.
Full Service Broker
This is an agency where you will have an assigned agent to work with you to list your property and charge you a fee based on several factors for the area (typically 7 % or more in the metro west area) if your home sells. They will provide you the necessary service to list your home in the MLS, show your home and provide a secure method for other agents to show the home, and will do much more marketing. They typically will provide a improved web search ability to help sell your home on the Internet (where 90% of buyers start their home search) and some additional print marketing such as flyers and books for potential buyers to have. Most will have their own sections in the newspaper to advertise homes and open houses. They will offer the highest BAC which draws other agents to show your property. And most will offer to do open houses if you want.
So to summarize:
Listing Service: Flat fee, home on MLS, sign in yard (you pay for it), show the home yourself, you pay out the BAC, out time and money if home doesn’t sell.
Discount Broker: Lower commission, home on MLS, sign in yard, take care of showings, lower BAC, some marketing and maybe open houses. No charge to you if home doesn’t sell.
Full Service Broker: Standard commission, home on MLS, sign(s) in yard, take care of showings, offer attractive BAC, extensive marketing and open houses. No charge to you if home doesn’t sell. They will work the hardest to sell your property as they will put more time and money into selling your property and will get nothing in return if they don’t succeed!
The market for selling homes is very competitive, especially in this current economy. You need to compete with homes being marketed by Full Service Brokers. Is it worth the risk to try saving a few dollars in a large financial transaction when there is so much at stake? Contact your Full Service (and more) REALTOR®s, The Derrick Team today to find out more what we can do for you. Call or text 317-563-1110 anytime, we work 7 days a week, evenings too.