I finally switched to flat fee listings after losing $3,000 on a 6% commission deal

For two years I did the standard 6% split with my broker and told myself it was the only way to get clients. Then I had a $50,000 sale where I walked away with only $1,500 after broker cuts and desk fees. A guy I know from my HVAC side of things does his own flat fee listings for $500 a pop and he showed me his numbers. He sold five houses last quarter and pocketed almost $25,000 total. That really opened my eyes to how much I was leaving on the table. Now I list homes for a $750 flat fee and handle showings myself. Has anyone else made the jump from the traditional commission model to something simpler?

3 comments

3 Comments

viola_garcia562d ago

Right, because nothing says "luxury home" like a for sale sign from a guy who also fixes your AC.

taylor.brooke2d ago

Exactly this. So tacky.

scott.alex2d ago

Ha! Yeah, I mean nothing says "I'm selling my biggest asset" like a guy rolling up in a pickup truck with a magnetic sign on the side. But honestly, if the guy does good work who cares what his day job is. I bet his HVAC customers trust him way more than some slick suit at a big agency. And hey, if he's pocketing $25k from five sales that's $5k a house, which is a lot better than splitting with a broker who does nothing. Maybe it's just me but I'd rather have a sign from the AC guy who actually shows up than the agent who takes 6% and disappears after the papers are signed.