Full service agent vs. flat fee listing....

To sellers considering a flat-fee listing;

As a broker, I understand that sometimes sellers need to save every penny they can to make the deal work for their buyers. Many sellers opt for what is called "Flat Fee MLS Listing," which means that the broker simply charges the seller a nominal fee let's say $300 and enters the listing in to MLS on behalf of the seller. The seller is then responsible to conduct all showings, negotiations, and open houses thereafter.

Not only do I think MLS should make this type of listing illegal, I also think that this type of listing is dangerous for the buyer, seller, and the broker alike. MLS was created for the purpose of enabling brokers to enter and manage listings in a unified system and work cooperatively to ensure a smooth transaction for the party they represent. Flat-fee listings create unfair competition and create a slew of problems from bad showings to bad representation. Every action that has been taken to diminish the role of the broker has historically proved unsuccessful.

It is documented that approximately 80% of those listings go unsold and are eventually handed over to a full time broker to handle. In addition, the sellers I have seen list this way lose thousands of dollars and time marketing the listing and dealing with buyers, lawyers, and taking time off from work.

One of my customers once told me, it is single.... If you need dental work, you see a dentist, is you need a haircut, you see a barber, etc.... Why is real estate any different. You don't go to your neighbor who is studying to be a barber and ask him to cut your hair and expect the best haircut? You don't go to an unprofessional dentist and ask him or her to remove your tooth....

There is nothing in my opinion as good as a full time dedicated broker who knows how to market and list your property. When choosing a broker, insure the following:

1. Ask your broker how many online avenues he or she uses to promote your listing.
2. Ask your broker what type of print advertising he or she does.
3. Ask your broker how many open houses will he or she conduct and where will those be advertised.
4. Ask to see a marketing plan like the one shown here.

In today's market an experienced broker is very valuable at the same time, don't be afraid to change brokers if the one you are working with is not delivering the goods.