Think twice when you hear “low listing commission”

Thinking about savings thousands by using low flat rate listing commission? I encourage you to read this article and to rethink it again. In my opinion it is very hard to save money that way, and is easy to loose them. Here is my reasoning:

Realtors work with Realtors

Yes it is possible to list the house in MLS® for a very low price for example $500. But do know that the half of the commission paid while listing a house is going to a buyer’s agent? How many realtors will bring their buyers to see a house when they know they will be earning $250 commission? Of course you have a chance to attract a private seller, but it is slim. There are nearly 600,000 listings in MLS® and without any additional marketing there is a big chance that your home will stay in a market for a long time – which will result in a lower price.

You get what you paid for

When you decide with what agent to list your house always ask them what is included in the price. Service from a Realtor® that lists your house for a regular commission usually includes: lawn sign, advertising in a newspaper, advertising on internet, 24 hour phones, negotiations, and dealing with contracts.

When you use a flat rate commission all you get is a listing in MLS®. You will have to spend incredible amount of time and extra cash to market your home. You will deal with negotiations and the contracts by yourself.

The bottom line is that it is possible to save with low flat rate commission, but it is hard. You will be basically selling the home yourself and you will have to put extra cash if you don’t want your house to stay on a market for a long time. You might as well pay 4%-5% from a get go, but get a professional and timely service without the headaches.

If you have any questions or comments please contact me or go back