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New York Real Estate Article Summaries
Finance Your Real Estate Investment Properties
By: Peter Dobler: Copyright 2005 Peter Dobler
Unlike traditional residential real estate mortgages, real estate investment financing is ... is well worth it to build a real estate empire?
I think it is well worth the trouble and hard work. At the end of the d...
What is the Real "Real Estate Software"?
By: Anastasiya Shalayeva: Everybody knows the difference between the virtual and the real. When it comes to real estate online ads, this differe... be real and correspond to the resources spent on the product development. Marketing built in toolsSay, it may be short ...
Resources for Online Real Estate Courses
By: Jeff Lakie: You've made the decision to move ahead in the real estate world and get your real estate license through an online cou... education programmes. With all of the information that's available, you'll probably need some help. Here is a guide t...
How Can the Average Person Build Wealth in Real Estate?
By: Dan Auito: Books on real estate are a dime a dozen—and most focus on taking advantage of someone else’s misfortune. They frequent... explained Auito, who has bought, sold and rented many properties over the last fourteen years. “It gives practical, aff...
Realtors – Give Your Website a Success “Makeover”
By: Stan Smith:
You know something is wrong – but you just quite can’t put your finger on it. You visit other realtor’s websites and... and promoting their Resource Link page. Learn more about this at
Research shows that nearly 50% of all home sellers start out trying to sell their property on their own. Although some home owners are successful with FSBO, according to the National Association of Realtors (NAR) home seller survey, only sixteen percent of sellers actually sell their home without exposure on the MLS. And many of them end up giving away their commission savings to the buyer to close the deal.
Realtors tend avoid for sale by owner properties because they are working with buyers and have no written agreement to be compensated. If the seller has not agreed in writing to pay a commission to the agent, the buyer could cut the agent right out of the deal and negotiate directly with the seller. It happens....
With flat fee MLS service, the seller has agreed in writing to pay a commission, usually 3%, to the buyers agent. This motivates Realtors to bring the seller a buyer.
How it works:
Real estate commissions by law are negotiable. In a flat fee listing, the listing agent agrees to a flat fee instead of a percentage of the sale price. This can be anywhere from $300-$600 for the service of adding your house to the MLS. Then you choose how much to pay the buyers agent in commission for bringing you a buyer (typically 3%). So in the sale of a $200,000 house you would pay $6,000 plus the flat listing fee, saving a close to $5,700 in commissions. The plus side is in the listing agents contract, the right to continue advertising you house FSBO. So in the event you find a buyer without an agent you save on all commissions and only pay the flat listing fee.
- What do you get with flat fee MLS listing:
- Advertise your home on Realtor.com®
- Market to buyers working with a Realtor® through the MLS
- Market to Buyers working without a Realtor®
- Retain your right to sell your property by owner
- Avoid paying any real estate listing commission by paying a flat rate or fixed fee upfront
- Only pay a commission if a buyer's agent sells your home
- Why would a listing agent want to do this?
For real estate agents this can be an opportunity to increase revenue by listing more homes. There are many people who refuse to use realtors because of the 6-7% commissions, but are more than willing to pay 3%. With the increase of internet marketing, realtors can reach more people because all they are offering is to list the house on the MLS. Services are minimal and the listing agent really won't be trying to find a buyer for you, but rely on the buyers agents. This allows them to list properties in a larger area and in some cases in other states.
With the increase of house prices, is the 6% sales commission going to survive or will flat fee listings be the wave of the future. Only time will tell...
Richard Massey is a note broker with United Financial Resources and a real estate investor. You can get more information at http://www.unitedfinancialresources.com or to read more articles go to http://unitedfinancialresources.com/news.html
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