What Is a Flat Fee Broker?
At PROmetro Realty, your questions are important to us! Here you can find quick answers to some commonly asked questions. Our definition of a flat fee broker may be different from what you’ve heard.
Or, feel free to ask us your own questions. We are happy to assist you.
Questions on Services
One of the most important things to know when signing a contract with a for-sale-by-owner outfit is that they, most likely, are NOT representing you as your real estate agent. At PROmetro, you always receive the full support of a licensed agent. Also, keep in mind that a real estate agent may approach you and ask you to pay a commission to them if they bring a buyer. In this case, you will be better off listing on the MLS where the home is exposed to more agents working with buyers. More buyers means a higher sales price!
At PROmetro, we list your home on the local Multiple Listing Service, DMAAR, used by the majority of agents in Des Moines. A company that does not advertise to all of these buyer’s agents is doing their client a disservice. In addition, you receive personal, one-on-one service from a licensed REALTOR®. Other outfits may leave you to handle some services on your own.
Absolutely not! Expect a full-service experience with a qualified and professional REALTOR®, whether you are buying or selling a home.
Questions on Fees
Real estate commissions are typically split in half between the buyer’s agent and the seller’s agent. For example, each side might receive 3% of the final sales price. However, at PROmetro, the seller pays a flat fee of $2,795 instead of a percentage. There are no administrative fees!
The 3% fee is used to access a large network of agents who work with home buyers. In 2019, 89% of home buyers purchased through a real estate agent or broker. Agents know that we are offering a cooperating listing when it appears on the the local Multiple Listing Service, DMAAR.
A buyer’s agent is typically paid through a commission offered on a listing and not by the buyer. PROmetro Realty does not charge administrative fees to home buyers!
The short answer is, “Yes”. While it is easier to utilize the same agent for both services, it is not required. It is helpful to work with one agent who understands your end goals. This way you and your agent can work together to achieve the best results.
Questions on DIY
According to the National Association of Realtors, 89% of home sellers were assisted by a real estate agent in 2019. Selling a home is not the same as selling a car, household items, etc. In a do-it-yourself culture, it is appealing to want to tackle this as another home project. At PROmetro, hiring an expert in real estate transactions means you don’t have to learn as you go while selling your largest asset.
You could try, but you would be missing out on qualified buyers who are working with agents. Also, be careful about what kind of information you post online as you may not be able to delete it (like your asking price). A better approach is to advertise your home directly to agents and offer a commission.
Zillow puts values on homes using an AVM or automated valuation model. Sometimes it is right on track and other times it is wildly inaccurate. Here is what Zillow says about it: “Zestimates are intended as a useful starting point to help you determine an independent and unbiased assessment of what your home might be worth in today’s market. Comparing your home to recently sold properties can also help you understand what your home is worth. Additionally, your real estate agent or appraiser will physically inspect the home and take into account special features, location and market conditions.”
While a company may list your house on the local MLS for a flat fee, it is of little benefit if you don’t offer a commission to a buyer’s agent. Remember, a REALTOR® with a qualified buyer is your friend when you’re selling a house. You want to advertise your listing to these agents. Also, keep in mind that some outfits simply do not offer a full-service experience and may even require you to pay a substantial start-up fee.