What is Fixed Fee Realty?

Fixed Fee Realty is a concept designed to save consumers money.

Before the advent of the internet and computers, buyers and sellers had to use real estate brokers in order to buy and sell homes. Brokers had a lock on the market because they had all the information/inventory in hard copy. The entire real estate industry has changed because of the internet. Consumers may now search for properties on their own. Information that once was only in the hands of the brokers and the industry, is now available for anyone to access by using the internet.

Brokers can be bring much value to the table and there are many consumers who continue to prefer to use them, but increasingly consumers are discovering that they can conduct much of the real estate transaction on their own or with the help of a real estate attorney, and save a bundle.

It used to be that consumers had two options. One was to list the home with a regular, full service real estate broker. The other was to sell by owner, FSBO (For Sale By Owner.) Fixed Fee Realty is here to offer yet another option, designed to maximize marketing power and minimize expense. It is called the Limited Service Listing. Here is how it works:

With Fixed Fee Realty, you pay a fixed fee to list your home on the MLS, marketing to all the real estate brokers, as well as the general public. You offer roughly ½ of a regular commission (about 3% or whatever you decide) to the agent who brings the buyer to you. You represent your own side of the transaction with support from the Fixed Fee Realty broker. This strategy saves you roughly ½ of what you would have paid a traditional broker to sell your home. Plus, you still reserve the right to sell your home on your own and pay 0% commission if no buyer broker is involved!

Real Estate 101:

The traditional real estate transaction involves two brokers. The listing broker is the one who is representing the seller. They place the home in the Multiple Listing Service, and install a sign in the yard. If agreed to, the listing broker will also host open houses for the seller. The seller agrees to pay the listing broker a fee, usually on average of about 6%. Real estate commissions are not set and are negotiable, but 6% ends up being about the average. Typically the listing broker keeps 1/2 (or 3%) for him/herself and offers the other ½ (or 3%) for the buyer’s broker. If there is no buyer’s broker, the listing agent may keep the entire 6% for him/herself.

It’s All About Choices:

Fixed Fee Realty offers the consumer an alternative choice, designed to reduce or eliminate commission fees. It’s your hard earned equity we’re talking about here.