All Forum Posts by: Jorge Zea

@Lynn McGeein: Whoever gave you that advice most probably is a full service broker trying to steer you away from Flat-Fee listings. Full service brokers think that Flat Fee Listings are "not fair" and take business away from them ... not true. It is just a different product for a different type of seller.

WE have listed thousands of properties in multiple states and not once have we had a problem with agents not wanting to show a property because of the type of listing. They will get paid anyway and with the online resources buyers have these days if their agent refuses to show them a property they will just go to homesnap or zillow or trulia, get the listing agents name and go directly to the seller. 

I agree that customer must make sure it goes in the correct MLS ... that is VERY important.

Investors like BP members should never be paying full commission. Here it is all about ROI and Cash on Cash.

Get a reputable locally licensed Flat Fee MLS listing company (google it). Make suer they are licensed in the State and not a referral service. You will be fine and will boost your Cash on Cash exponentially way beyond the 3% (assumption) you will save from the Listing Agent's side.

Always remember: commissions are calculated on the TOTAL sales price but the come out DIRECTLY ONLY FORM YOUR EQUITY. This triggers and exponential effect on your COC and ROI way beyond the % of commissions paid.

Hey everyone. The Flat Fee system is clear. You save the ListingAgent's side of the commission. But nothing is free ... seller must do the work that the listing agent usually does. That's the saving.

It's like growing tomatoes in your backyard. You save money because you don't have to buy them but you have to do the work that the farmer does like plant, prune, fertilize, de-weed, water and harvest (in exchange for the saving).

It is up to each individual if they decide that the work they will put in equals or overweight the money they will save.

@Matt M. I know some MLS have detached from Zillow (with good reason - Zillow is horrible and unreliable ... anybody can post whatever they want there). I participate in around 13 MLS systems in 4 different states ... all syndicate to Zillow Group who now owns Trulia. Nevertheless systems like homessnap.com are gaining popularity and have better tools and more reliable info than Zillow - furthermore, for Realtors is amazing as it brings the MLS power in one single simple powerful application; including listing agent contact info, commission offerings, property lines, public records etc. Most MLS are partnering with homesnap (owned by some Realtors out of DC). it is the best application by far out there and will be the trending name in years to come.

I am pushing all of my customers towards it (it is MLS feed only - much more accurate and reliable than others) and away form Zillow/Trulia.

There is market for everyone: Discount Brokers, Full Service Brokers, Flat Fee Brokers ... etc. All of them complement each other and together we encompass the entirety of the market .... some FSBO still out there though ....they get tired soon and come to any of us depending on what they need, want and can afford. that's the beauty of the free market .. there are offerings for everyone. I have tremendous respect for full service Brokerages that work hard for their customers and I tip my hat to Buyer's agents ... those are the toughest one and who do most of the leg work!

@Kyle Doney and @Matt M. are correct. FSBO are a magnet for Realtors trying to list the property. It is a headache. that is why you need someone to list it in the MLS. Once it is listed in the MLS, Zillow reflects the listing agent and shows it as listed by a Brokerage. Realtors will stop immediately. Our Realtor Code Of Ethics (article 16) prohibit us from soliciting properties that are already listed.

Hence, a Flat Fee MLS listing service Brokerage will give the best of both worlds ... dramatic savings on commissions and you control your deal (showings, negotiation, coordination, etc) ... you are saving the Listing Agents side of the commission (you will be doing that work your self).

Direct FSBO with no MLS exposure do not work.

@Matt M. might be correct ... there are horror stories in every industry. I could get a book published with horror stories by Full Service Brokerage ... several volumes).  In Flat Fee listings it does not depend so much on the company because each deal is handled by the individual seller; So it isn't the company's fault if you have had 3 bad experiences. Without knowing which company you are talking about is impossible to verify stats.

For experienced seller, like the ones in BP a Flat fee MLS listing service is by far the most profitable way for selling their properties. there is the normal push-back from agents because they think they are loosing listings to them, which is not the case. Less than 1% of listings use Flat fee services.

The Flat Fee service is not for everyone, but investors that know what they are doing should save the listing side of the commission 8at least) ...  it is all about cash-on-cash and profit.

Commissions are calculated on the entire sale price but they come out ONLY from the equity of the seller which disproportionally affects the COC of the deal.

To get a reputable Flat Fee Listing Company make sure that it is licensed in your state (we aren't sorry), that answers the phone and answers your questions. Do not use any of the referral services out there (most of them are referrals) because you loose control. What we do for reviews is hire an independent, google-approved, company that collects the reviews from actual customers and we have no way of manipulating them ... they are what they are. Don't trust sites that publish "reviews" on their own or collect reviews directly on their site - those  are in most cases bogus reviews.

@Kyle Doney will be able to find a good Flat Fee service, sell (or rent) his properties and BOOST his ROI and COC dramatically ... it is a no brainer.

Thanks @Charlie DiLisio for using us and for your comments. As @Russell Brazil mentions, you have to offer a commission to buyer's agents to get listed in the MLS. We also list a lot of properties for Realtors like him and they avoid having to pay the split to their own Broker (most don't give agents a break on your own deals as his broker does). Unfortunately we are only in FL, MA, CT and CA for now.

The fact that properties listed through a Full Service Brokerage sale for a higher price that non-MLS listed properties is very debatable. All the statistics out there come from National Realtor Association who needs to protect it's members and try to get them more listings.

But let's assume it is indeed higher ... the question is: how much higher? .... I don't think that it would be 2% or even 1% higher.

People on BP forums are, or we can assume they are, at least a little bit knowledgeable of how a transaction works .... BP members can sell their property on their own without a problem ... they just need exposure and MLS is by far the best option they need. Offer a nice 3% and list it with a Flat Fee MLS.

Think about this (get a calculator for a second): commissions are calculated on the entire sales price BUT they come directly (and only) from your equity. So the % of commission paid affects disproportionally your NOI and COC. Think about this and how a 3% savings in commission (depending on your leverage) can be 20% or more of your equity. Fat number.

I have seen people drive 10 miles to get 20 cents off a gallon of gas but get home to a huge For Sale sign on their yard for which they are paying 6% commission (or 20% of their equity to a Realtor).

BP members are here to make money and if that means making a little effort to sell a property on their own ... just list it with a Flat Fee MLS listing company ...

UNLESS you find a Full Service Broker that can assure you that he will get you the same ROI by selling it higher.

There are Flat Fee MLS listing companies that will do it for a very reasonable fee. Best way to go. Just Google for Flat Fee MLS in your county and check for references and make sure the service is not a referral service but directly the Broker that will list your property for you.

You can do it on your own!!

@Joe Kim: If all you need is finding a tenant (you can do the background screening yourself if you will self manage). use a reputable, state licensed Flat Fee listing company and offer something for a tenant's agent. It will get you onto the MLS (95 effective). You should be able to get one for $99. Check my profile.