Selling a home in Idaho? 

It used to be that the only option for those seeking professional help with this was a full-service real estate broker. But in recent years, a new player has entered the picture: flat fee realtors.

But are they a good choice? Could they end up costing you more in the long run? Before you decide, it’s essential to understand the differences between these two kinds of realtors. 

What’s the difference between full-service and flat fee real estate brokers?  

Full-service brokers receive a percentage (typically 5–6%) of the sale price, split between the buyer’s and seller’s agents. Flat fee agents charge a set fee, no matter how much the property is worth. 

A full-service real estate broker does everything for you, from listing your home on the Multiple Listing Service (MLS) to marketing and showing your home to potential buyers. Because they’re getting a commission, you won’t pay a penny more for these services. 

On the other hand, those employing flat rate real estate agents pick and choose the services they want, which will determine how much they’ll pay.  And over time, the costs of these services can really add up.

Flat fee brokerages are like a la carte lunches. Individual items may seem cheap, but once you add them all up, the final bill can be expensive. 

By contrast, a full-service brokerage is like a sumptuous five-course prix fixe meal where everything is included in the price. 

The hidden costs of flat fee brokers 

Flat fee agents will do whatever you want them to do—as long as you pay them for each service. For instance, they might charge you $500 to list your property on the MLS. While that might sound cheap, you’ll have to shell out more cash if you want other services, such as staging or hosting open houses. 

Some brokerages claim to offer full service even though they’re flat rate. The problem is they have zero incentive to do more than the bare minimum because they get the same amount no matter what. 

In some cases, sellers working with a flat fee broker end up spending just as much—or even more—than they would have with a commission-based agent, though they get a lower level of service and support.

Risks of flat fee listings 

If you’re familiar with the ins and outs of real estate and are equipped to handle property showings, negotiations, and the dozens of other details that go into a real estate transaction, you might be able to save some money with a flat fee broker.

Keep in mind, however, that one of the biggest disadvantages of using a flat fee broker is that you’ll have to do much of the work yourself. This includes completing all paperwork for the transaction, such as the seller’s disclosures. If you make mistakes (and you probably will) you’ll have to redo them, which is both time-consuming and stressful.

And what if your home takes longer to sell than you thought? You could find yourself paying additional fees for additional marketing or relisting or even needing to switch to a traditional agent—losing both time and money in the process. Even worse, you might have to cut back on realtor services so you don’t bust your budget—which could put the entire sale in jeopardy. 

Even if you’re lucky enough to sell quickly on your own, the price could be thousands of dollars below what you could have gotten with a motivated full-service expert by your side.

The full-service advantage 

From the first consultation to the glorious closing day, a full-service agent is right there with you, providing guidance and support throughout every phase of your real estate journey.

Many flat fee brokerages will just list your property and wait for buyers to appear. Not so with full-service agents, who are motivated through commission to sell your home quickly and at the best price possible. They’ll go above and beyond to connect with potential buyers, tirelessly working to get your home sold.

Here are some services they offer: 

• Hosting open houses to show off your property to potential buyers
• Promoting your home on the MLS
• Helping you complete paperwork to avoid costly mistakes
• Giving expert advice on how to stage your home to attract buyers
• Coordinating home inspections and appraisals to ensure everything is in order
• Recommending mortgage brokers and lenders to make financing easier
• Offering tips on home improvements that can significantly boost your property’s value
• Creating a personalized marketing strategy for your home, including professional photos, virtual tours, and social media ads
• Conducting a thorough market analysis to help you set a competitive yet realistic price

Closing thoughts 

Selling your home is one of the most significant financial transactions you’ll ever undertake. Don’t settle for a broker who’ll sit on the sidelines and wait.

Instead, choose one who will fight hard to get you top dollar. A great agent doesn’t just list your home and hope for the best; they roll up their sleeves, market it aggressively, and negotiate to get you the best possible price.

A full-service brokerage offers all this and more. There are lots of moving parts to a real estate transaction, and ensuring that they come together harmoniously requires a real estate professional who’s invested in your success and will do whatever it takes to get you a fantastic deal.