Flat Fee Commissions in Utah County

When the Utah County Real Estate market was hot it was easy to sell homes.  The flat fee commission brokerages thrived. This occurred between 2004-2007 in Utah County.  A seller would pay a low fee to get onto the MLS. The Realtor would post the listing to the MLS and in most cases basically abandon the listing.  The buyer would be charged a nice credit card fee. The buyer would typically be the one showing the home, negotiating the sale, doing the follow-up, selling and marketing the home.

I have meet many sellers that were extremely disappointed with the flat fee service. They had their credit cards charged and felt like they received little to no service. Did they really expect service? Did they really expect to get top dollar for their home? Did they think the Realtor would chase every buyer lead? Selling a home is a skill and not just data entry.

You are paying to get on the MLS and not for any service.  Do you think the home seller is at a disadvantage when I bring a buyer on their flat fee listing home? I have been selling homes since 1995 and have sold over 900 homes. This is like putting Hulk Hogan in a wrestling ring with Pee-Wee Herman.  Sorry, I am from the eighty's decade and use actors from the past to make a point.  If you are unsure who these people are please Google their names and look at their size difference.

I have a fiduciary duty to my buyer to get him the best price and terms on his sale. This seller is cannon fodder to me. They have no Realtor to defend their price and terms. I will bring my comparisons and politely debate a better price and terms for my client. Many sellers will give a lower price than they should.  What is the point of a flat fee commission? The seller often leaves a ton of money on the table and gets absolutely no marketing or service. It is like going to court without a lawyer and representing yourself without the savings.

If you want a flat fee commission just ask a professional Realtor that is skilled in marketing for a discount. Many good Realtors will give you a better commission if you just ask. The flat fee commission brokerages were once much more popular. Since the real estate market has become increasingly difficult in Utah County many buyers have dumped the flat fee commission idea and returned to the traditional Realtor. Years ago sellers would say, "I am going to hire a flat fee commission broker and save money." Now the sellers say, "I hear the flat fee commission companies don't offer good marketing and or the service I need." Sellers are becoming more educated about flat fee commissions from the internet and through word of mouth. I see it like a fad diet.

A revisit to the airline industry tells the story. While consumers demanded and got lower fares, they paid dearly by sacrificing safety, baggage fees and comfort. Anyone who has flown in a cramped seat, hungering for a hot meal, and looking over the wing wondering if maintenance had been performed definitely is paying a high price for low prices.

Buying a home in Utah County is not the same as getting a hot stock tip, or buying a seat on an airplane. The one advantage that the industry has is that every home, neighborhood and transaction are unique, and value can only be quantified by comparison. That gives the agent willing to hold the hand of even the most die-hard Internet consumer an advantage. Without complete market knowledge of a given home and its neighborhood, it is anyone's guess whether the seller sold for too much or too little or the buyer paid too much or too little.