Flat Fee MLS Listings in Kansas City by The Flat Fee Guy

The Top Five MLS Services for Selling Your Home

2011-07-22T02:35:00.001-05:00

If you're selling a house you can join thousands of other sellers saving money by listing a home on the Multiple Listing Service, an MLS listing. By getting an MLS listing yourself you won't have to sign with a full service real estate agent. And your home will still reach the eyes of many potential buyers and their real estate agents.

Here are the five best MLS listing services you choose from to list your home for sale by owner:

TotallyFreeMLS.com: You can list your home for free by using TotallyFreeMLS.com. With this service you can get your home listed on your local multiple listing service. Realtors have access to the multiple listing service system so your home will be viewed by thousands of potential buyers and their real estate agents. You can visit TotallyFreeMLS.com athttp://www.totallyfreemls.com.

MLS My Home: This service is a flat fee MLS listing. There are three packages offered through MLS My Home. The first is MLS Entry. With this level of service your home will be listed on realtor.com and on the local MLS. Your home will be listed in one or two days. You can showcase your home with up to six photos on a free page. The listing will be active for six months and you can manage your own account. The cost is $295. The second level of service through MLS My Home is MLS Entry Plus. With this level of service you get the same items as the MLS Entry and other items including 20 listing photos and an active account for 12 months. The cost is $595. The third package is the Full Service Listing where you can choose your own package that includes a listing on the local MLS as well as realtor.com. The cost is $195. You can find out more about MLS My Home athttp://www.mlsmyhome.com.

Owners' Flat Fee MLS: If you choose Owners' Flat Fee MLS you can have your home listed on large real estate sites such as realtor.com, Yahoo, MSN and AOL. You can still sell by owner and you won't have to pay a commission if you find a buyer for your property without the use of a real estate agent. You can choose upfront how you'll pay commission to the buyer's agent. The rate for Owners' Flat Fee MLS is $395. You can visit Owners' Flat Fee MLS athttp://www.owners.com.

FSBO Advertising Service, Inc.: The company FSBO Advertising Service, Inc. touts itself as the country's first flat fee MLS brokers network. You can choose multiple listing service packages from $199 to $499. For information on FSBO Advertising Service, Inc., visithttp://www.fsboadvertisingservice.com.

Fizber: You can create a great listing with Fizber to get your site sold. Fizber will submit your home listing to popular classified ad sites such as Craigslist, Trulia and Zillow. You won't have to create a separate ad for each. You can list your home for sale with your local multiple listing service by owner for $349.95 and get a premium MLS ad for $499.95. For information on Fizber, visithttp://www.fizber.com.

Get online with the Listing Cloud.com

2011-07-09T15:39:00.000-05:00

Homes-KC.com

2011-07-08T21:27:00.003-05:00

The Flat Fee Guy joins BurkeandJohnson.com

2011-07-08T13:32:00.000-05:00

List By Owner on the MLS in Kansas City

2011-07-05T22:37:00.001-05:00

Flat Fee MLS Listing with The Listing Cloud

2011-07-04T20:37:00.021-05:00

Learn How to Sell a Home
Without Paying 6% Commission
31 Day 100%* Money Back Guarantee

If you have been searching the internet to find the best way to get your home sold in the least amount of time,and at the highest possible price without having to anti up a huge sum of money to a real estate agent then you have come to the right place. Until the past few years only agents had access to the information and tools that greatly simplified the home selling process. Not today. You can now get access to same marketing, systems and tools as traditional agents for a fraction of the cost. * a $50.00 processing fee does apply. (have to pay the help)

Here are the basics of our $349 Stratus flat fee mls service:

MLS Listing: Attract More Buyers With The Most Powerful Internet Marketing System available In Kansas City. Get your home listed on the MLS with 20 pictures for 1 year.)

Showcase Listing on Realtor.com (with 20 pictures), Yahoo, Trulia, Zillow, Backpage, Craigslist (posted bi weekly) and Top Realtor sites like Reece and Nichols, Remax, Keller Williams, etc. Maximize Your Opportunity for Showings and Offers by Exposing your Home to Millions of Buyers Throughout Kansas City and the Nation

Free Pricing Assistance: You can get free comps of homes in your area sent to you. Get the same data that appraisers, lenders and agents use.

Free Posting to Craigslist Twice a month

4 Free Open House Postings: Get your open houses posted to Realtor.com and the MLS for free throughout your listing period.

Free Virtual Tour.

Professional Yard Sign: Get a free 18x24" courragated plastic yard sign. You only pay $5.00 plus shipping and handling.

Free Brochures: Once listed you can download a free brochure from our website and/or request a free pdf version of your MLS listing.

Free Contracts, Forms, and Disclosures: You get access to same sales contracts and disclosure forms that are used by agents in your area.

ListebyOwner Site included

Lock Box (29.00) extra

Call Eddie @ 816-694-3448

* 31 Day Risk Free *

100% Money Back Guarantee

If you are not completely satisfied for any reason you can cancel your listing within the first 31 days and we will refund the $349 that you spent on our service. (minus a $50.00 processing fee)

This service works equally well whether you are a for sale by owner, first time home seller, savvy investor or an industry person.

Here is your chance to Avoid All Realtor Commissions

This is crucial. All leads generated by our marketing efforts go to you. Wouldn’t it be perfect if an unrepresented buyer purchased your home? Then there would be no percentage commission to a buyer’s agent or a listing agent. A $250,000 home listed at 6% commission (which is quite common in Kansas or Missouri) equates to $15,000 in savings!

Most flat fee companies actually take leads and calls that come in through various websites and try to convert them into buyer leads for their company. This is not a our practice and we don’t do it.

We will not represent any buyers for the purchase of your property. Why not? Because it is a conflict of interest. You need the best advice you can get and we cannot do that if we are also representing a buyer for your home.

On the MLS all Realtors are directed to call you for all showings. Other websites like Realtor.com list our number. When a buyer dials our number we make sure that you get those leads immediately.

Call Eddie @ 816-694-3448

Does our listing cloud concept sound great to you?

Here is how we are able to
do this all for a low fee

We are not doing showings, meetings or hosting open houses We spend out time on internet marketing, not face to face with clients. Bottom line it took us years to get our systems in place and you get that advantage.

We are not holding our clients hands through out the process, but they say it feels like we do due to our great cloud communication system.

We maximize technology and the information available to us as experienced insiders so that you benefit with the latest techniques and strategies needed to sell your home. We support our clients via the phone, email, fax and internet and give great value or your hard earned dollar.

We are members of the Kansas Association of Realtors and have not had a complaint since we joined –

The Listing Process is Simple

After you fill out a listing form you will be sent forms, then you can pay for services. You credit card payment will be requested once your listing is input.

You will then be able to download the forms to your computer so you don’t have to have all the information in front of you right now. The process is done this way because your signature is needed to comply with the state laws in Kansas and Missouri.

Once you get those forms back to us your listing will be up and running in two business days. You can either fax or scan or email the forms back to us.

You will receive a copy of the listing via email so that you can proof and check it for accuracy. Any needed changes will be made quickly for your re review.

What Happens Once You Are Listed

You will receive an mls listing via email with your mls number. Once you receive this you are listed and could start receiving calls immediately. It does take 1-2 days for your listing to show up on Realtor.com and generally 2-5 days to show up on other sites.

Showings: All showings are conducted by you. If you cannot be there for showings you may want to consider getting a lock box. This will enable you to give permission to licensed agents to access your keys and show your home when you are not there.

There is also an option ($70) for an appointment setting service with Centralized Showings to handle calls for showings. They can give our showing instructions, confirm appointments with you and the agent and give out lock box codes. This is the same service all Realtors in KC use.

Call Eddie @ 816-694-3448

The Support You Will Get

Changes: All changes to your listing are free. You can change your price, pictures, description or anything else as long as it is within MLS rules and all applicable laws. Changes are done within 48 hours.

Cancellations: You can cancel your listing at any time with no fees. Cancellations are done the same business day that we receive them.

What if I want to list with a traditional agent after a few months?
You can cancel your listing at any time and once you cancel with us you are free to list with anyone you choose.

Phone and email support: is given 6 days a week. We only answer emails after 5 pm on Saturdays till Monday morning.

Forms and Contracts: All of forms and contracts that you need are available once you are listed.

How Offers and Negotiations are Handled

State law requires brokers to accept and present offers to their clients. Offers from agents are faxed or emailed directly to us. They come in as a pdf and sent you via email.

We will then be available to answer your questions and walk you through the offer. There is no extra charge for this service. This service is included in the package.

After contract is signed what happens?

After a contract is signed it is customary for there to be a 5-15 day inspection period. The title company can help you make sure the proper documents are in place so that closing runs smoothly.

The buyer usually also has to get their mortgage finalized which can take 3-4 weeks. Closing usually takes place 4-6 weeks after a contract has been signed by all parties.

Will agents bring in their buyers even though I listed by your service?

Yes, thousands of homes sold and counting have been sold using flat fee services. Most agents just want their buyers to find the right home and as long as they are getting paid for their services they will be happy to show and sell your home. It is important you offer a 3% buyers commission.

Are you locally licensed?

Yes – We are licensed in the state of Kansas and Missouri, members of the Kansas City Regional Association of Realtors, Heartland MLS Systems (Kansas City Area respectively). Eddie Davis will personally oversee the listing process and your home will be listed under The Hungry Agent, Redefined with Eddie Davis as the listing agent.

Is this really better than going with a traditional agent?

We think so. If you are looking for someone to hold your hand throughout the process then a traditional agent is the traditional way to go. If instead you are willing to do some work on your own in order to save thousands of dollars selling your home then this is the better way.

I cannot guarantee you will sell your home but you will have a far greater chance of success in going with our service instead of a straight “for sale by owner” route. The fact is that if you are priced right and you have good marketing materials – good pictures and description of your home – that there is no reason your home will not sell just as fast as if it were listed with a full service traditional real estate agent.

Your basically getting the tools and advice your need to sell your home. And assuming that you do not ignore the information we provide you have an superior chance of being successful at selling your home and maximizing your equity.

Will my listing look the same as traditional agent’s listings?

Yes. It will look just like all the other mls listings.

What about commission for a buyer's agent?

Listing agents in the Kansas City metro area generally get paid 6% (which is then split with the buyer’s agent). BUT list with us and you will only pay a flat fee of $399. There is no percentage commission going to a listing agent. So right there you just saved 3% commission.

If an agent brings in the buyer that closes the transaction then you would be responsible for the buyer’s agent commission (which is set by you). .

If there is no agent associated with the buyer then you pay NO % commission and you just saved 6% commission.

What is your success rate?

We will not have a success rate that is the same as with the top agents for a few reasons.

Top agents do not take on listings they do not think they can sell. They will not waste their time coming up with a marketing plan that is doomed to fail because the home owner will not price aggressively, make suggested changes to their home, or make their home available at all times for showings. A top agent became a top agent by knowing where to maximize their efforts. A lot of our clients are trying to get the maximum dollar and are not as anxious to see, and don't want the pressure of a Realtor constantly reminding them to drop their price.

What if I want to hire a traditional agent down the road?

Not a problem. You would simply cancel your listing with us. (at no charge) At which point you would be able to list with whomever you wish.

Call Eddie @ 816-694-3448

The Flat Fee Guy Overtakes Albert Einstein

2011-07-04T14:57:00.000-05:00

Follr.Me Social Identity Card

2011-06-25T18:00:00.000-05:00

http://follr.me/flatfeeguy

2011-06-25T15:14:00.000-05:00

2011-06-25T15:03:00.000-05:00

Typical Real Estate Marketing Plan

2011-06-18T19:56:00.000-05:00

Cirrus Listing Option $399 - Our Most Successful Program

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Product - Powerful Full Listing Flat Fee MLS Listing Program
The Full MLS Listing Package is the most powerful, far reaching home selling strategy that property owners can utilize. The MLS is the only tool available which reaches every real estate professional in your area, and alerts them that your home is for sale. Plus, MLS listings are searched by up to 10 million, individual, internet home shoppers each month. Perhaps, best of all, the MLS offers homeowners the option to save thousands of dollars in commissions, without sacrificing their reach.

Our MLS Listing Program Includes:

1) A 6 month listing* on your local Multiple Listing Service (MLS) with multiple photos and detailed information
2) A 6 month listing* on your local MLS database, which can also be viewed on Realtor.com

• SHOWCASE Listing on Realtor.com
• Up to 25 photo images on Realtor.com
• Customized headline on Realtor.com
• Customized 250 character special text marquee on Realtor.com
• Customized 2500 character description on Realtor.com
• Upload Video Tour for Realtor.com and YouTube.com
• Bonus - FREE webpage with up to 20 photos and video tours
• Free Color Property Flyer download

3) Automatic property listing feeds to Google, Yahoo, MSN, Zillow, TheHungryAgent.com, Zillow, Trulia, Craigslist, Move.com and other major portals for real estate.
4) Free Featured Home Listing and Webpage on our site includes 20 photo’s, video tours with additional listing feeds to major websites not covered in the MLS.
5) Free Legal Forms and Contracts for Your Area.
6) Sales and Marketing Help and Advise.
7) Free Blog and Up to the Minute News about Real Estate.
8) Coordinated close with First United Title Co.
9) Kansas and Missouri require offers to be presented to agents.
We provide an OfferRunway where you get your offers automatically

Services included in Full Listing Package

1)Showing Service
2)Combination Lock Box
3)Professional Yard Sign

(*up to one year in many locations)

What are the steps to get on the MLS?
1) Order an MLS for a low flat-fee through our feedback form or by calling 816-694-3448
2) A local agent will contact you directly and provide you with the necessary paperwork.
3) Return the completed paperwork to the agent who will place your home on your local MLS within 48 hours.
4) The agent will contact you directly to confirm your home has been placed on the MLS and provide you with the MLS number for your property.
5) When a Realtor® brings you a buyer that results in a successful home sale, you pay the buyers agent a commission (typically 2-3%)

Want to Get Your Home on the MLS and Keep Your "By Owner" Status?

Now there is a way! A company designed to simplify the home selling process by providing useful information, innovative technology and quality products that give homeowners a choice. Since our inception, the #1 request heard from homeowners is the desire to place their homes on their local Multiple Listing Service (MLS). If after reading, you think the power and the exposure offered by the MLS fits your needs, please contact us at 816-694-3448 or Ed@FlatFeeGuy.com

What is the Multiple Listing Service (MLS)?

MLS stands for Multiple Listing Service. The MLS is a database of homes for sale in a specific area and is run by the
local Board of Realtors®. It's the traditional method agents use to find homes for their buyers or to advertise their
listings to other agents.

What is the benefit of putting my home on the Multiple Listing Service (MLS)?

There is one very significant benefit to having your home listed on the Heartland MLS EXPOSURE to the local pool of
real estate agents! The fact that you have your home for sale in the MLS will now be known by the hundreds, if not
thousands, of real estate brokers and Buyer's Agents in your market who are helping buyers find homes.

How long will my home be listed on the MLS?

Six (6) months.

What is the difference between a Sellers Agent and a Buyers Agent?

A Seller's Agent lists the property, represents the seller and is legally obligated to put the seller's interests above all others. A Buyer's Agent represents the purchaser in the transaction and puts the buyer's interests above all others.

What does it mean to "co-op"?

Co-op (cooperative payment) means that you would be willing to pay a Buyer's Agent a fee for bringing a
buyer to you. Typically, a Buyer's Agent is paid 2.5% - 3.0% of the sales price. It is necessary to list the commission amount you are willing to pay on the MLS when you list your home with the real estate agent.

If I do not want to "co-op" with a Real Estate Agent, is the MLS still a good idea for me?

No. A Buyer's Agent expects compensation. Without offering it, an agent will have no reason to bring a buyer to your
home.

Do I have to pay an agent if I put my home on the local MLS but find the buyer myself?

NO! In this scenario, you would have only spent $399 ** to get on the MLS using

So what are my cost savings with putting my home on the MLS as opposed to going with a full- service Real Estate
Agent?

Let's go through both scenarios with the assumption that you are selling your home for $150,000. One scenario uses a
regular full-service Seller's Agent with a 7% commission. The other scenario uses Yes Flat Fee MLS service.

Using Traditional Real Estate Agent Using Yes MLS service only
Your costs $10,500
(7% of $150,000) $399 **
(MLS fee)

$4,500
(3% "CO-OP" fee)
Total paid
after sale $10,500 $4,899

SAVINGS OF $5,701

Think about it. Wouldn't you rather use that money for a vacation or a new car? When you're ready for MLS, we're here to help you!

** $399 MLS fee includes a $50 non-refundable processing fee.

Title Insurance Explained Visually Click on Picture

2011-06-18T19:18:00.001-05:00

941 SW 58 Highway; Holden, MO 64040

2011-06-16T19:59:00.000-05:00

35 Acres M/L Horse/Cattle Ranch in Holden, MO 64040. State of the art horse barn with covered riding arena, fenced, dog pen with run, and much, much more. Check out this great 1 bedroom.

The Listing Cloud.com

2011-06-09T21:35:00.002-05:00

Rainmaker Real Estate

FAQ's When Pricing Your Home

2011-05-29T15:24:00.000-05:00

Here is a Home Pricing FAQ I thought might come in handy.

Frequently Asked Questions When Pricing Your Home

I want to price the home high, since I can always come down later.
Many homeowners want to price their homes above market value in order to ‘leave room’ for negotiating. However, this strategy usually backfires. Most home buyers won’t even bother looking at homes that are overpriced which results in fewer showings. Fewer showings means fewer offers. A better strategy is to price your home at or slightly below market, in order to generate more offers and get the highest possible price.

What is Market Value?
Market Value is the price that similar homes in your market area have SOLD for.

I’ll price it higher, but I’ll consider all offers.
It’s good that you are willing to consider offers. But again, most buyers won’t even bother looking at homes that are overpriced, let alone make an offer. Unfortunately, most buyers believe that sellers who overprice their home are unrealistic and will be difficult to work with and will likely be a waste of time. This belief halts the stream of offers. Remember, the average buyer is looking at 15-20 homes at the same time they are considering yours. Sellers who price their home too high aren’t taken seriously by prospects or agents. Buyers would rather negotiate on a home that’s priced at market value.

Many home in my neighborhood are priced the same as mine.
Don’t get confused by looking at what other homes are currently listed for. Many sellers overprice their homes. Market Value should be based on homes that have already sold and closed.

I live in a newer subdivision where homes are still being built.
This means you will not only be competing against other resale homes, but also against the builder. To compete, you will want to price your home at below what the builder will charge to build the same home. When given the choice, buyers almost always prefer new. You can compete by offering a more competitive price.

My home has more features and benefits than the other homes, so shouldn’t I pricing it higher?
Unless these features and benefits are major, ie, a pool, guest house, kitchen/bath remodel etc., your market price will not ferret out any higher than homes that do not have these upgraded features and benefits. This is hard for most sellers to understand. Many sellers believe that because they have upgraded flooring, lighting, crown molding, paint, etc, they should price their home higher. However, if you upgrade your home for your personal benefit and then choose to pass these costs on to the buyer, you may be surprised with the response. When given the choice, buyers usually prefer a lower price in lieu of upgrades which they didn’t choose, but are being ‘charged’ for.

The conclusion? Having additional upgrades in your home will certainly help it compete and sell faster than similar homes that don’t have these features and benefits. However, you may not be able to get ‘more’ for your home than similar homes that do not have these upgrades.

Call or email me with any questions.

9937 Cedar Overland Park, KS 66207

2011-05-02T00:56:00.000-05:00

Discounters Down But not out

2011-04-24T21:55:00.000-05:00

Full-service brokerage model going strong in downturn

Matt Carter
Inman News™

Editor's note: This is the first article in a multipart series focusing on low-fee real estate business models.

The full-service real estate brokerage model has emerged from the downturn largely intact, defying expectations that traditional companies would face stiff competition from brokerages offering commission rebates and discounts or a menu of fee-based services.

When information about property listings and housing markets once available only to Realtors started to become accessible over the Internet more than a decade ago, many predicted that innovation and competition among brokerages would drive down commissions paid by consumers.

If homeowners could market their properties online, the thinking went, more sellers would list with limited service brokers offering a menu of services including "MLS only" listings. And if buyers could go online to find their ideal home, why pay a Realtor full commission to chauffeur them around town?

Internet-based brokerages sprang up offering commission rebates to buyers willing to do some of their own legwork.

Flat-fee and limited service brokers offered sellers a menu of services on an a la carte basis, including "MLS only" listing packages, so that clients could choose to pay only for the services they wanted.

During the housing boom, discount and limited-service brokers attracted the notice of the news media and consumers alike. Statistics show the companies also grew their market share, and commission rates charged by traditional full-service brokers declined.

Redfin expanded out of its home base of Seattle, ruffling feathers in the industry by plugging its commission rebates and discounts in high-profile forums like "60 Minutes."

ZipRealty Inc., a full-service brokerage that rebates part of its sales commission to buyers and offers reduced commissions on listings, made an initial public offering in 2004, five years after launch, and climbed into the ranks of the nation's top 10 brokers.

Although the percentage-based commission rates charged by real estate brokers declined during the boom, they didn't come down as fast as home prices went up -- meaning the total commission revenue generated by each sale still increased sharply.

From 2002-06, the average commission rate earned by brokerages owned and operated by Realogy Corp. subsidiary NRT, the nation's largest brokerage, fell from 2.63 percent to 2.48 percent per transaction side, according to the company's annual reports to investors.

During the same period, the average home-sale price in transactions involving NRT brokerages climbed more than 56 percent, to $492,669.

As a result, the average commission revenue generated by each transaction side involving NRT brokerages climbed nearly 49 percent from 2002-06, to $12,691 per transaction side, even as the average commission rate declined by nearly 6 percent.

After adjusting for inflation, the increase in average commission revenue per transaction side at NRT brokerages from 2002 to 2006 was nearly 33 percent.

(A "transaction side" refers to each instance in which a brokerage represents either a buyer or seller in a sale. The total commission rate on a sale is equal to twice the commission rate per transaction side, if the brokers representing the buyer and seller split the commission paid by the seller equally.)

NRT has 750 offices in 35 markets, staffed by 44,000 sales associates operating under the Coldwell Banker, ERA, Corcoran Group and Sotheby's International Realty brands.

Although NRT brokerages tend to represent high-end properties, median commission fees for the industry as a whole grew an inflation-adjusted 20 percent from 2002-06, to an average of $12,458 per transaction, according to the U.S. Department of Justice's "Competition and Real Estate" website.

"Unless broker costs were also rising sharply during this period of time, competition among brokers should have held commissions in check even as home prices were rising," the DOJ observed.

Representatives for Realogy and NRT declined to be interviewed for this story. Before it was taken private by private equity firm Apollo Management in 2007, NRT parent company Realogy was publicly traded, and Realogy continues to file detailed reports to investors that provide valuable insight into commission practices.

Realogy also provides franchise services to independently owned brokerages operating under the Century 21, Coldwell Banker, ERA, Sotheby's International Realty, Coldwell Banker Commercial and Better Homes and Gardens Real Estate brand names.

Industry leaders maintain that competition between real estate brokers is intense -- ZipRealty, citing figures compiled by Real Trends, noted in its most recent annual report to investors that in 2009 the 10 largest brokerage firms handled less than 6 percent of residential real estate transactions.

There's evidence that average commission revenue is cyclical, dropping off in a downturn. John C. Weicher, Director of the Hudson Institute's Center for Housing and Financial Markets, concluded in a 2006 paper that inflation-adjusted commission fees per home sale declined by approximately 7 percent from 1991-98.

But Weicher, who served as assistant secretary for housing in the Bush administration from 2001-05, also noted the widespread perception that commission rates are "sticky" on the way down -- even though technology has supposedly reduced brokers' costs. Much of his paper addressed the difficulty of ascertaining the truth of such perceptions.

Economist Chang-Tai Hsieh has theorized that during a boom, rising home prices and commissions attracts more people to the industry, but that increased competition between agents doesn't benefit consumers or individual agents.

The most recent real estate boom nearly doubled NAR membership, from 700,000 in 1996 to a peak of 1.37 million in October 2006 (NAR membership has since declined to 1 million and falling).

Instead of offering reduced commission rates, Hsieh's research suggests agents in competitive markets spend more time prospecting for clients, and close fewer deals. Hsieh concludes that in high-priced markets with intense competition between agents, consumers end up paying higher commissions but individual agents are no better off.

While discount and limited-service brokers made inroads during the boom, some of the downward pressure on commission rates was undoubtedly due to rising home prices.

Realtors often say that all commissions are negotiable. Sellers are aware of the fact that rising home prices meant bigger commission checks for Realtors.

There was a widespread belief during the boom that, with loans easy to come by based on market conditions -- just about any home could essentially "sell itself," even without the marketing expertise of a skilled, experienced agent.

A 2008 survey by Consumer Reports, based on responses from 3,753 readers who sold or tried to sell a home, 4,029 who bought one, and 7,368 who did both within the past few years, found that about 46 percent of sellers attempted to negotiate for a lower commission rate, with a 71 percent success rate among those who tried.

"Sellers who paid commission rates 3 percent or lower were just as satisfied with their brokers' performance as those who paid 6 percent or more, suggesting that haggling can't hurt," and there were no statistically meaningful differences among the report's rated companies in customer satisfaction, Consumer Reports found.

The Consumer Reports survey also revealed that "paying an agent a lower commission rarely had any effect on the sales price."

When the bottom fell out of home prices, median commission fees came tumbling back down, to $9,733 per transaction in 2009 -- about where they'd been a decade ago, according to DOJ figures.

But as home prices dived, commission rates rebounded, demonstrating brokerages' resolve to stanch the bleed in commission revenue -- and a willingness on the behalf of sellers to pay full commissions to agents with proven marketing abilities.

At Realogy's NRT brokerages, the commission rate bounced back 3 basis points, to 2.51 percent per side in 2009, before retreating to 2.48 percent in 2010. Independently owned brokerages affiliated with Realogy's franchise brands boosted commission rates from 2.47 percent in 2006 to 2.54 percent in 2010.

But because home prices were falling, the average gross commission income per side at NRT brokerages dropped 24 percent from an all-time high of $13,806 in 2007 to $10,519 in 2009. During that time, the average home-sale price in transactions involving NRT brokerages dropped nearly 27 percent, from $534,056 in 2007 to $390,688 in 2009.

While commission rates at NRT brokerages slipped in 2010, gross commission per side increased to $11,571, boosted by a rise in the average home-sale price to $435,500.

Franchisor Keller Williams Realty's studies also show overall commission rates rebounded from 5.09 percent in 2007 to 5.59 percent in 2009, before softening slightly to 5.42 percent in 2010.

"Right now, the consumer is having to really value the agent," said Mary Tennant, Keller Williams' president and CEO. "(Consumers) can't achieve the results without the agent."

Austin, Texas-based Keller Williams is one of the largest franchisors in the U.S. Brokerages affiliated with the company operate 700 offices with 80,000 agents in the U.S. and Canada.

"In 2005, some of our agents may have elected to be more flexible than they are in 2011," Tennant said. "Fees are not one-size-fits-all -- we teach our agents to be responsive to their market."

If full-service brokerages were more willing to negotiate commission rates during the boom because rising home prices more than offset any concessions they made, they also faced growing competition from limited-service and discount brokers.

An analysis by Keller Williams revealed that the share of listings represented by limited-service brokers surged by 7 percent in 2006. After that, limited-service and discount brokers saw their market share plummet by 34 percent in 2007 and 18 percent in 2008.

The analysis looked at the top five limited-service and the top five full-service brokers in each of several markets.

"I don't think 'worry' is the best way to describe our mindset," Tennant said of the inroads made by limited-service brokers during the boom. "We were very aware of the dynamics coming our way."

When housing markets cooled, many brokerages and franchises -- traditional and discount alike -- found the going tough.

One of the earliest and most prominent casualties among discount brokerage was Foxtons, which operated in New Jersey, New York and Connecticut before filing for bankruptcy in the fall of 2007. Foxtons made waves by offering to list homes for a total commission of 3 percent, and offering only one-third of that to agents representing buyers.

In fall 2008, the Help-U-Sell Real Estate franchise company filed a petition for Chapter 11 bankruptcy, with company officials blaming the housing downturn. Although Help-U-Sell lives on under another owner, Infinium Realty Group Inc., the flat-fee brokerages affiliated with the franchisor now operate 117 offices, down from nearly 820 in 2006.

ZipRealty charged into 16 new markets in 2006 and 2007, only to post a $13.3 million loss in 2008 -- even as the company's 2,800 agents handled 17,156 transaction sides, a 23 percent increase from 2007.

With losses continuing to mount -- the brokerage posted a $15.5 million loss in 2010 -- ZipRealty kicked off 2011 by announcing in January it was closing offices in 11 markets. That move reduced the agent count in the company's remaining 23 markets to 2,500, down from 3,403 at year-end.

In fall 2008, Redfin announced it was laying off 20 percent of its workforce. CEO Glenn Kelman said at the time that the downsizing, which left the company with 75 to 80 employees, had more to do with the downturn in housing markets than the company's business model.
The following month, the company announced a new pricing structure that provided more services but reduced buyer rebates and discounts on listing fees.

In his 2008 book, "SHIFT: How Top Real Estate Agents Tackle Tough Times," Keller Williams co-founder and chairman Gary Keller predicted that agents who mastered markets like short sales, foreclosures and bank-owned homes would prosper. The book detailed techniques for agents to overcome buyer reluctance, manage expenses, generate leads, and utilize creative financing.

Short sales and real-estate owned REO properties have accounted for more than half of sales in many distressed markets in California, Florida, Nevada and Arizona.

"We felt that if our agents were the best educated going into this, they would stand the best odds of prevailing" during the downturn, Tennant said.

Derek Eisenberg, broker-owner of Hackensack, N.J.-based limited-service brokerage Continental Real Estate Group Inc., said that listing with a flat-fee service provider can help sellers recoup equity they've lost in their home.

And while large lenders and their asset managers don't seem to have realized it yet, "If anything, REO (listings are) the best situation to be using an a la carte broker," Eisenberg said. Cleanout services can ready REO properties for sale, and asset managers can handle negotiations for the seller, he said.
"I'm not seeing it with the Chases and the Bank of Americas, but I'm definitely seeing it with small, midsize lenders," Eisenberg said. "Most of them are putting combination lockboxes on the door and letting people go unaccompanied to see the house."

Tennant said Keller Williams looked at a la carte pricing models nearly 20 years ago.

"We don't inhibit our agents in any way. They can operate in any way they choose," Tennant said, adding, "We believe the market validates our view that more people are looking for full-service agents who are knowledgeable about the entire process. Right now that's what we're hanging our hat on."

Keller Williams' studies show the market share of listings claimed by top limited-service brokers rebounded by 16 percent in 2010, but those brokers still represented less than 3 percent of for-sale listings. The top limited-service brokers in markets analyzed by Keller Williams included Assist-to-Sell, Housepad.com, ZipRealty, Help-U-Sell, and SellSmart.
The latest trends

In a recent Inman News survey conducted in February and March 2011, 1,054 agents, brokers and sales managers shed light on the commission and compensation practices at their firms.

Although 94.3 percent of agents and brokers surveyed said they charge clients a percentage-based commission, 12.3 percent said they offer services on a flat-fee basis, indicating some overlap between the two models.

In addition, 6.5 percent of those surveyed said they offer cash rebates or other rebate incentives, and 4.4 percent provide services based on a fixed hourly rate.
One Oregon broker-owner who's a sole practitioner reported charging clients $125 an hour, up to a maximum of 4.5 percent of a home's sale price.
A broker in Nevada reported typically charging a percentage-based commission of 6 to 6.5 percent, but also offers consulting service packages that include a choice of hourly or task-based compensation.

A brokerage in New Hampshire reportedly offers clients different marketing plans, with commissions ranging from 6 to 10 percent. Most choose the marketing plan with a 6 percent commission, but about one in five sellers choose plans with commissions of 7 to 8 percent, reported an agent who works for the brokerage.

Most of those surveyed -- 58.7 percent -- said sellers were not more likely to negotiate commissions in 2010 than they were in 2009. But 45.6 percent said they believed sellers are more likely to negotiate commissions this year than they were in 2010.

Nevertheless, only 5.4 percent said seller negotiations related to compensation had the biggest impact on their income in 2010. An even smaller number -- 3.4 percent -- said competition from low-cost brokers had the most impact.

An earlier Inman News survey, released in September 2006 and based on responses from more than 1,000 real estate professionals, revealed that 20.3 percent of respondents reported that seller negotiations related to commission had the most impact to their bottom line. In that 2006 survey, about 27 percent of respondents said their broker limits their freedom to negotiate listing commissions.

The latest Inman News compensation survey, conducted this year, found that Local and national economic conditions (44 percent), distressed properties (17 percent) and business from past clients (13.1 percent) were identified most often as the factors having the biggest impact on income.

When asked to identify typical compensation per transaction side for listing agents in their market area, 85 percent gave responses in the range of 2.5 to 3 percent. Nearly 91 percent put typical compensation for buyer's agents in their market in the 2.5 to 3 percent range.
Half of those surveyed said their broker required a minimum total commission in order to list a home. Most often, the minimum total commission was between 5 and 6 percent (20.2 percent of responses), followed by 2 to 3 percent minimum commission (11.2 percent of responses), 6 to 7 percent minimum commission (7 percent of responses), and 4 to 5 percent minimum commission (6.3 percent).

Fewer than 1 percent said their minimum commission was either less than 2 percent or more than 7 percent.

"Normally we get 6 percent, but this market has taken us to some 5 percent listings," said one Oregon-based broker associate. "They state in our manuals: 7 percent."

"We work to have a 7 percent commission on listings under $300,000 and a sliding scale above that but nothing is set in stone," reported an agent in Indianapolis, Ind.

An agent in Pennsylvania said that for listings under $60,000, the minimum commission charted is $4,000 (about 6.7 percent or higher). The minimum commission for homes priced above $60,000 is 6 percent, while commissions can be as low as 5 percent for homes priced over $500,000.

"Anything under $1 million is listed at 6 percent" commission, said a New York broker associate.

"Below 5 percent, you need to discuss with (the) broker," said a Florida agent.

"We start at 7 percent and settle for no less than 5 percent," said an agent based in Las Vegas.

The percentage of agents and brokers who responded that percentage-based commissions would become more popular in the next five years (43.6 percent) exceeded the percentage of agents who responded that flat-fee services would be more widely embraced (35.8 percent).

About 13.1 percent of those surveyed responded that cash rebates and other rebate incentives would become more popular in the next five years.

Next week: Part 2 in the series will explore the history of competitive issues and antitrust actions related to low-fee real estate business models.

Contact Matt Carter:

Email Letter to the Editor

Copyright 2011 Inman News

2011-04-24T11:59:00.000-05:00

APRIL - 2011 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local Kansas City housing information that you may find useful whether you’re in the market for a home, thinking about selling your home with a flat fee mls listing in Kansas City, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click here to view the APRIL- 2011 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

Follow this blog

2011-04-16T14:24:00.002-05:00

Esolist, Revolutionary Social Media Marketing for HomeSellers

2011-04-10T23:21:00.000-05:00

Eddie Davis on Realtor.com

2011-04-02T19:21:00.000-05:00

2011-03-16T08:09:00.000-05:00

MARCH - 2011 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local Kansas City housing information that you may find useful whether you’re in the market for a home, thinking about selling your home with a flat fee mls listing in Kansas City, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click here to view the MARCH - 2011 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

New Offer Management System at Yes Flat Fee MLS.com

2011-02-27T16:48:00.000-06:00

Your Offers Are Cleared For Landing.

Managing offers on a listing is time consuming, especially if you are a Flat Fee Listing Agent. Yes Flat Fee MLS has a solution that will drastically reduce the amount of time and effort spent on offers every day. Offer Runway allows me to receive offers for all properties in one online platform and efficiently manage those offers. These offers are automatically sent to you as a listing client of Eddie Davis. Even when I am sleeping. Yes! That was what you were looking for!

Features

This system allows Buyers, buyer's agents and attorneys to make offers
Easily search for properties from our main page
Submitted offers are routed to the user's Offer Runway platform for each property
Offers can be uploaded or faxed to a dedicated offer fax number
Easily manage all property details with our Snapshot feature
Accept, counter or decline offers from the property detail page
Obtain a buyer with built-in transaction broker agreement for buyers with no agent
Email confirmation for listing agent, buyer, buyer's agent and seller (optional)
Property settings include showing number of offers, email seller, auto-counter & more

How It Works

In your MLS listing remarks, simply put "All offers must be made through offerrunway.com" (This can optionally link directly to the property detail page on your Offer Runway account)
Buyer (or buyer agent) goes to the property on offer runway, and fills out the offer details
The buyer (or their agent) uploads the required offer documents. Alternatively, a fax cover sheet is created with a barcode to fax the offer - the system reads the fax, and attaches it as a PDF to the offer
The listing agent & buyer's agent receives a notification via email for each offer submitted, optionally the seller also receives a notification and the buyer receives a notice if their email is provided
A list of offers by date submitted is viewed on My Properties page in an easy to read format
Respond by clicking the ‘Respond' next to the offer record and the offer can be accepted, declined or countered with a single click
The buyer is notified via email of any action the listing agent or buyer's agent takes if their email is provided in the details

Benefits

All offers go to one place
No more looking through stacks of papers
Offers are organized and easy to access from anywhere with internet access

Automatic email notifications to the seller and listing agent
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Confirmation emails include uploaded files and offer details
One-click offer operations make responding to offers easy

YesFlatFeeMLS.com

2011-02-23T01:29:00.000-06:00

FEBRUARY-2011 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click here to view the FEBRUARY-2011 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

Yes Flat Fee MLS Realtor.com Listing System on Realtor.com

2011-02-10T01:32:00.001-06:00

Yes Flat Fee MLS.com Listing Presentation

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