Leaving High Real Estate Broker Commissions Behind
If you are in the midst of buying or selling a home, you may find that you have no need for the entire range of services offered by your broker. Yet, you are still responsible for the entire commission. This is where a la carte real estate services come in. A la carte real estate services allow you to pay for only the services you use during your buy or sell. That choice will save you thousands in commissions that would be better applied toward your closing costs.
Fees are determined by the service plan. Sellers have a few options. Whichever you choose, a la carte real estate services will give you the benefit of full service real estate listings for a fraction of the commission you would pay a traditional broker. If you offer your home for sale on the Multiple Listing Service (MLS) as part of your a la carte arrangement, you will enjoy access to all the benefits of a traditional MLS listing but will also be liable for the full buyer broker commission. However, total commission costs will still be thousands less than with a standard representation arrangement. (FYI, a la carte real estate services are available only for traditional purchase and sale transactions; short sales and lender negotiated purchases and sales do not qualify.)
A la carte real estate services work best in facilitating sales in which the buyer is also not represented by a broker. For a flat fee you, as seller, will receive help in negotiating and putting the purchase and sale agreement together, follow up on buyer mortgage qualification, deliver necessary disclosures to the buyer, open escrow, coordinate inspections and offer advice on repair requests. Hourly consulting services are also available.
Buyers also benefit from a la carte real estate services. You, as buyer, may even qualify for a 25 percent refund on the buying broker commission provided you commit to a minimum 30 day agreement with the a la carte real estate service. Under this agreement, your a la carte broker will locate potential homes for you to view, perform a market analysis to help you determine the best offer price, assist with contract negotiations, help you obtain the best mortgage and represent your interests at the final property walk through prior to closing.
Why not look into a la carte real estate services the next time you are in the market, particularly if you are selling. You will be pleasantly surprised at how much further ahead you will be financially by taking a nontraditional approach to your transaction.