Is there a trend for flat fee brokerage firms?

 Recently I have noticed more “flat fee” or otherwise known as discount brokerage firms entering the market. A discount brokerage firm offers a flat fee, typically $1,700, to sell the home instead of charging the traditional 6% that a full service agent would charge. The homeowner would also need to pay the buyer’s agent’s commission. This rate is also a flat fee, usually $3,000, and not the traditional 2.8% of the sale price. On the other hand, the full service broker would charge 6% of the sold price to pay for both brokers. For example, if the home is sold for $300,000 it would cost the homeowners $18,000 to sale. This would save the homeowner $13,300. This looks like a great option for seller in a hot market right? Not necessarily.                                                                                    2002 S Xenia Way Denver, CO Denver Townhome for Sale         

What kind of service do you get with a discount brokerage firm?                                                                                                
I have never worked for a discount brokerage firm, however some of these agents have showed my listings and I have shown theirs.  Last year my sellers went under contract with a buyer working with a discount broker. Unfortunately there was a lack of communication and misinformation and the contract was canceled. On the flip side, I had a buyer interested in a home that was listed by a discount brokerage firm. The buyer had some questions about the property and the agent would have their assistant return our calls. The assistant had little to no information on the home and our questions were never answered. Because of this we did not end up moving forward on this house.

How does their marketing compare to full service firms?

The marketing seems to be minimal at best. Most buyers start their search online. This is the time to make a great first impression of your home. A buyer will overlook a great home if the photos and descriptions do not do it justice. It is common to see a listing by a discount firm to have below average photos, errors or missing information listed in the MLS.

Before I list a property, the home is professionally staged and a professional photographer takes beautiful photographs that highlight the home. We remove family photos, de-clutter the house, and remove furniture to maximize space which makes it feel warm and inviting. We also hang “special feature cards” throughout the house to highlight areas of the home.  All of this work pays off as my listings always look wonderful and sell quickly.

Summary

In my experience, Denver homes that are listed with a discount brokerage firm will generally sell for less money than a full service firm. Nevertheless investing more time and money into the sale of your home will in turn net you a better profit and you will likely walk away with more money. The level of customer service you will receive with a full service firm outweighs what you might get with a discount firm.  My advice to any Denver home seller is to do your homework and interview both types of brokers. Check their reviews and ask each broker to provide you with a list of past clients for references.