What is a flat fee Denver Realtor? Flat fee and discount real estate listing agency in Denver comes in many different forms. I have been implementing a FULL SERVICE, flat fee and discount real estate model in my Denver real estate practice for over 2 years. I found that what I did to sell homes does not vary greatly no matter the price point. And I wanted to find a good deal that I could offer friends and family. I do not deviate from this structure to avoid the awkwardness of offering one person a better deal than another and having it discovered by the lesser benefiting party. My Denver full service, flat fee real estate model is $5,000 + the 2.8% that I pass through to the buyers' agent.
Here is a video about my full service, flat fee Denver real estate model.
How does the money flow in a real estate transaction in Colorado?
You need to know that although both agents are paid at simultaneously at closing, the seller is paying the listing brokerage one large sum, and then the listing brokerage is paying the buyer's agent out of that amount. The buyer's agent commission is advertised in the MLS (multiple listing service) with the listing for the house. Buyer's agents are discouraged from discriminating against showing homes with lower commission rates, but there is no way to know if an agent chooses not to show a home because of the commission rate offered. My bigger fear would be that an agent would speak negatively of a home, pointing out flaws or suggesting it is overpriced, if the commission rate is less than competing homes for sale. In my model I offer the most frequently offered amount in the Denver MLS (recolorado) of 2.8%.
How much does my full service, flat fee real estate model cost metro Denver home sellers?
I charge 2.8% + my $5,000 flat fee.
Many real estate agencies charge 6% to sell your home. With a sales price of $380,000 (The median sales price April 2017) the total commissions paid with a 6% model would be $22,800.
With a sales price of $380,000 the total commissions paid with a 2.8% + $5,000 model would be $15,640, saving the average Denver home seller up to 7,160.
But commission savings are meaningless unless all the pieces are place to still sell your home for top dollar.
What marketing do I do with my full service, flat fee Denver real estate model to sell homes for top dollar?
I implement every marketing strategy I have seen to position all of my listing clients to sell for top dollar and create bidding wars whenever possible.
1. Professional photography
I explain to clients that everybody sees your home online before they see it in person. Photos are the new curb appeal. And quality photography can make a huge difference in how many people come to see the home, which translates into the number and price of offers received. The company I use has talented and experienced photographers with top of the line HD photographic technology.
2. Floor plans
Virtuance also creates floor plans. I find this especially useful for flyers, so that I can encourage potential buyers to take home a flyer and imagine their furniture in the home. Also the online virtual tour shows on the floor plan where each picture was taken.
3. Dedicated URL
I create the website address of your address.com, for instance www.4125Clay.com. This is displayed on top of the luxury yard arm and on the flyers. It makes it easy for people to remember your address and look up information about your home.
4. Luxury yard arm
This used to mean something but almost nobody uses the old signs anymore.
5. MLS and syndication.
I am a member of 2 local MLS's: www.recolorado.com & www.iresis.com . In addition to listing on the MLS, the home is displayed on all major public web sites and all agents' web sites with IDX searches.
6. High quality flyers
I like a flyer with the floor plan on the back for viewing buyers to take with them. Hopefully they want to think about how well their furniture would fit. I also like them taking something with them that would help them give the home a second thought if they were not initially wooed.
7. Open houses
I like to do 1 open house. I advertise the open house in the first line of the description, in the MLS, on Zillow, and Realtor.com . There are 2 reasons to do the open house. The first reason I do an open house is to try and find an unrepresented buyer, reducing your total commissions to $10,000. The second, and more common reason, is to enable buyers, whose agents are out of town, to view the home. More than a few times I have received the strongest offers from these buyers and their agents.
8. Showing coordination
I use showingtime.com or showings.com for my showing coordination. A barrier remains between you and the buyer's agent, while utilizing technology to have showing requests immediately sent to you for approval. Both services also have feedback systems and surveys for buyer's agents to let you and I know what they thought of the home. I am willing to use a manual lockbox or a digital sentrilock lockbox to assist, depending on your preference.
9. E-mails advertising to agents with prospective buyers.
Did you know we enter buyers into the MLS the same as we enter sellers? You probably do know this. A real estate agent has probably set you up with a home search that fit a set of criteria that you provided. Did you know, when I enter a listing into the MLS, I can see a list of agents that have buyers for whom my listing fits their criteria. I am pretty savvy with technology and mailchimp. I will send an e-mail blast notifying these agents of my new listing, sometimes 1,000 agents. I will also be able to see the agents who have a client who favorites my listing. I will be reaching out to those agents directly.
What other services do I offer with my full service, flat fee Denver real estate model?
1. Price analysis
I advise you as to my belief of a realistic sales price and best list price.
2. Contract negotiation
I assist in the initial and ongoing contractual negotiations. The devil is in the details, and I help you understand how the terms of the contract will affect you. This includes positioning you to buy and sell a home simultaneously if desired.
3. No risk and no obligation
You can terminate your contract with me at any time, if you have not signed an agreement with a buyer. I do not want anybody stuck working with me. I take pride in my work and work as though I could lose my job tomorrow, if I don't do it today.
What are my duties to you as a full service, flat fee Denver Realtor?
- Promoting the interests of Seller with the utmost good faith, loyalty and fidelity;
- Seeking a price and terms that are acceptable to Seller; and
- Counseling Seller as to any material benefits or risks of a transaction that are actually known by Broker.
Broker must exercise reasonable skill and care for Seller, including but not limited to the following:
- Performing the terms of any written or oral agreement with Seller;
- Presenting all offers to and from Seller in a timely manner regardless of whether the Property is subject to a contract for Sale;
- Disclosing to Seller adverse material facts actually known by Broker;
- Advising Seller regarding the transaction and advising Seller to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker;
- Accounting in a timely manner for all money and property received; and
- Keeping Seller fully informed regarding the transaction.
Broker must not disclose the following information without the informed consent of Seller:
- That Seller is willing to accept less than the asking price for the Property;
- What the motivating factors are for Seller to sell the Property;
- That Seller will agree to financing terms other than those offered;
- Any material information about Seller unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; or
- Any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property.