Mike’s Real Estate Show

 Depends what you mean by a flat fee brokerage. We have one in our area who, for $500.00, they will put it in MLS. You drive up to show the property and there sits a FSBO sign? Sometimes you’ll get their sign but MOST Realtor/Agents are hip to the “flat-fee” companies and have a tendency to avoid them. Why? The reasons are numerous:

* The Realtor/Agents don’t know who they ultimately will be dealing with and the level of professionalism involved! I had an instance where I did not “catch” the company name before showing. I pulled up at the house with a client and there sat a FSBO sign. My client looked at me and asked why where we looking at a FSBO? Was I going to represent both parties, how would my Buyer be represented? She was angry and disappointed. I reassured her I had no idea this was a FSBO. I then checked the listing and recognized the company as a “flat fee” brokerage. I further read they stated, “Contact seller directly to show and present all offers”. When I knocked on the door the Seller was ALL OVER my client! He literally took her by the arm and dragged her throughout his house explaining every detail in minutiae!! We almost got into a tug of war with the poor gal! He then had the audacity to tell her, “why don’t you come back and we’ll work out a deal!” I called the “Flat Fee” broker and he said, “I’m sorry-I don’t have anything to do with these people once I put it in MLS.” I asked him about the Mandatory California Agent Inspection disclosure and he told me nothing would be forthcoming on his end because he was NOT the cooperating broker but just placed it into the MLS. When I told him doing so made him the cooperating agent, as per our MLS by-laws, he reassured me that was incorrect and I was on my own! My client thought the Seller a complete jerk and couldn’t’t see his house beyond his boorish actions!

* Another time I showed a “flat-fee” property as my client noticed it and asked to see the house. I NEVER do NOT show a property if a client wishes to see it, regardless of representation. This time it was a very pleasant seller who had a darling property my client fell in love with. We came back and asked her when she’d be hearing offers? This was when the market was running amok with multiple offers, extreme overbidding. She said anytime I wanted. I immediately wrote the offer and came back, presented it and got the offer accepted at full price. The Seller was delighted.  Problem here? I only saw 5 other Realtor/agents cards when I showed the property. All the other properties we had previewed there where 30+ cards and the listing Realtor/Agents where saying all offers presented a week down the road! Her flat fee got her a full price offer of which she was delighted but it cost her most likely $25-50,000 because she did not know the strategies in properly “listing/marketing” the property! Her flat fee broker got paid his $500.00 upfront. He too didn’t provide a mandatory agent disclosure. We noted this in the file and our corporate attorney sent him and the Department of Real Estate a letter to this end. I wrote the offer with ME representing the Buyer ONLY!! She was on her own!

* I could go on about how Realtor/Agents will avoid you like the plague, but first time homeowners don’t want to fool with you as they need extreme handholding and representation. A relocation buyer won’t want to waste their valuable time with a glorified FSBO as they need to act and act now. However Investor’s and Bottom-feeders LOVE running into smart Sellers wanting to save 3% of the sales price.

This is a business decision you, as a Seller, can make. I respect your decision either way.