What services do "Flat Fee" real estate brokers offer?

"Flat Fee" real estate brokers (sometimes referred to as "fee-for-service" brokers or "limited-service" brokers) represent a departure from "traditional", full-service brokers, who typically charge a commission based on a property's sales price in return for a "full-bundle-of-services".

"Flat Fee" real estate brokers offer home sellers the option to purchase less than the "full-bundle-of-services" provided by "traditional", full-service brokers.

"Flat Fee" real estate brokers offer an array of products and services and home sellers are given the option to pick and choose the ones that best suit their needs.  Most "Flat Fee" real estate brokers offer home sellers two (2) or more service packages, and many offer an additional itemized list of optional services.

The "Flat Fee" real estate business model benefits home sellers, who do not want to forgo broker assistance completely but who feel comfortable handling many aspects of the transaction without such assistance.

"Flat Fee" real estate brokers often offer an MLS-only package, which allows home sellers, who are not permitted by MLS Rules and Regulations to list their homes in the MLS on their own, to list their homes in the MLS by contracting with a broker, who is a member of their local MLS.

 For a one-time, flat fee, a broker will list the home in the seller's local MLS and make an offer of compensation in the MLS to other brokers who may cooperate in the sale of the home. 

• The "Flat Fee" real esate broker retains the flat fee whether or not the home ultimately sells  
• If a Buyers’ Agent or Facilitator ultimately secures a buyer for the home, he or she would receive the cooperating commission
• A seller who finds a buyer own their own (without the help of a cooperative broker) would not pay a commission

MLS-only packages offered by "Flat Fee" real estate brokers typically include other services provided via the MLS.  These include advertising the seller's listing on third party, real estate websites that home buyers search directly (e.g., Realtor.com) and on other MLS members' websites.

Additionally, "Flat Fee" real estate brokers typically provide the home seller with additional selling aids, such as yard signs, online advertisements, and a lockbox to allow Buyers' Agents to show the home when the seller is not present.

In addition to MLS-only packages, many "Flat Fee" real estate brokers offer other brokerage services.  A recent review of "Flat Fee" real estate broker websites indicates that most offer at least two (2) tiers of service and the complete array of “traditional”, full-service brokerage services; sometimes at a reduced commission.

Therefore, home sellers who purchase a MLS-only package, but later feel they need more assistance with their transaction, typically can obtain this additional level of service from their "Flat Fee" real estate broker; for an additional fee.

Further, many "Flat Fee" real estate brokers allow their clients to cancel their Listing Agreement at any time, leaving consumers free to pursue other brokerage or non-brokerage options if they become dissatisfied with the "Flat Fee" real estate busines model.

Although the "Flat Fee" real estate business model has existed since the 1970s, many major national real estate brokerage chains have been slow or resistant to offer such services to their clients.

The main reason for their resistance is obvious: In a booming real estate market, a relatively stable commission rate translates into higher commission fees per transaction and an increased profit opportunity for the corporate chain and its agents.

Therefore, you will find that most brokers who specialize in the "Flat Fee" real estate business model are not affiliated with major national brokerage chains and, by nature, internet savvy professionals.