What you might not realize is that their “discount rate” may be charged to you whether your home sells or not.
The upside to discount seller programs seems obvious: It’ll save you money when it’s time to sell your home, by charging a lower or flat fee listing side commission. However, it’s important to have the facts before you decide to go with one of these programs.
In today’s market, everyone wants to get more value for less cost in the selling program they choose to list with. Discount brokerages have been around for years, and they often multiply when a market is strong, and then disappear or go out of business when a market shifts - these days we are seeing a new crop of discount brokerages pop up, some backed by venture capital, with huge marketing budgets, and slick online marketing... and they bear an attractive message: We’ll sell your home. You’ll save money. Unfortunately, there is some “fine print” in this message.
One of these newer selling programs operate on a flat fee system — they’ll charge sellers $3,600 plus buyer’s commission (typically 2.5 to 3%) so in other words, $3,600 plus the 2.5 to 3% buyers agent commission.
On the surface, this might seem like a deal that’s hard to pass up. Though it can be found on their websites, what some sellers are unaware of is that their discount rate will be collected from you no matter what. In other words, whether they sell your home or not, you’ll be on the hook for that $3,600. You’ll pay it if you sell your home, or if your home fails to sell, or if you decide to cancel. So in other words, a seller will be paying the $3,600 whether the home sells or not. (unlike listing with a brokerage where sellers only pay when a home actually sells)
So please, before you enlist the help of a flat fee program to get your home sold, give proper consideration to the risk it poses to you financially. Before making a decision, insist on seeing a copy of the company’s local track record - in other words, a list of the homes they have listed, and which ones have sold and for what percent of the list price. Numbers don’t lie. Doing so could save you a good sum of money and frustration. We’ve personally researched the track records of these companies, and their success rate is far below the market average, and even more dramatically below the results we’ve delivered to our clients over the past 18 years here in the Tampa Bay area.
If you have any additional questions about how you can net top dollar for the sale of your home or if you have any other real estate needs that I can assist with, we’d love to chat with you. We’ve been helping homeowners here in the Tampa Bay area for years net top dollar in the sale of their homes. Give us a call at 813-907-2555 or send us an email today at email@example.com.