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Discounted & Limited Service Listings

How does a real estate company offer “Discount Fees”?   State Real Estate Commissions don’t really like the term “discount”- since there is supposed to not be a “standard”, or “typical” fee.  The US Federal Trade Commission insists on no set fees in order to maintain fair trade.  So, on what standard is the discount based?  Let’s therefore leave the term “Discount Brokerage” aside.

If Company A offers a bundle of 10 services within its “Full Service” listing agreements, how can Company B offer all 10 of those same services for 1/3rd of Company A’s  fee?   The answer is, if all other aspects of the operations are the same, it will be difficult.

Un-Bundling the typical “full service” listing contract, and offering a “Menu of Services” can allow a company to accept less in commission percentage ( or a small Flat Fee)  for serving the Listing Side.  Maintaining a good commission for the Buyer Agent side is a good idea, however.  There are agents who select the properties to show Buyers-  after reviewing the commission potential of each!!!

If the Un-Bundled service means that the Owner/Seller has elected to negotiate on their own behalf, this will potentially yield an advantage to the Buyer thru his/her agent’s representation of the Buyers.  Remember the old saying, “an attorney who represents himself has a fool for a client”?   With a real estate transaction, self-negotiation isn’t quite that harsh, but a Seller without negotiation assistance may miss some key points relating to competitive advantage.

 

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