I just saw a very interesting question posted on one of the Zillow forums. It asked: “Do buyer’s agents, steer their clients away from homes that are listed with a $3000 “flat fee” commission, as opposed to a percentage based (2.8%) commission?
Here was my answer…
Let me just share this recent, true story, and I’ll leave you to draw your own conclusions on the answer to this question.
I just took over a listing that had previously been offered by Denver’s predominant “flat-fee” listing broker. The home was listed by them at $359,000 for six months, with a $3000 flat fee co-op in place. During their listing period it had 64 showings and zero offers.
I took over the listing immediately after it expired, during the slowest time of the year for home sales (between Thanksgiving and Christmas). I did some very minor staging, updated a couple of the listing photos, and INCREASED the price by $6000 to $365,000. The only marketing change of any real substance was that I offered a more typical 2.8% co-op (commission) to the other agents.
Within ONE WEEK I had two competing offers, both above asking price, from extremely strong buyers. (Because of my price increase, my seller netted the same amount he had expected to net with the flat fee listing company, even though I had to charge him a bit more to offer the 2.8%).
I’ll leave you to draw your own conclusions on the answer to this one!