Articles - Snippits

Sure, Your agent is motivated to sell your home, but in what way do they want the sale to take place?

When selecting company to list your home for sale, you probably have 3 choices when it comes to the type of Realtor you select based upon the Fee Structure that they utilize and the resulting motivation that this may or may not cause the agent to have. The approaches can be called a "full fee" approach, a "discounter fee" approach and a blend called a "flexible fee" approach.

The distinction between the different approaches can be drawn in two main areas. Who finds the buyer and how the deal comes together

A "discounter fee" approach real estate agent goes into the transaction with a fee that is reduced for the amount charged by the full fee agent. Their business model that guts the services that are going to be performed during the course of the listing period. This structure is also geared to pay out more to the agent that ends up representing the other party, the buyers agent. Consider that the Discount Agent may be looking to "Double End" the transaction because there is more money available to the Buyers Agent as compared to the Sellers Agent. To me, this sounds like a conflict of interest, but that may just be me.

A "full fee" approach agent structures the commission charges that no matter how the deal comes together and with no concern as to which agent actually ends up working with the buyer of the property. In a dual agency setup the following may apply that, there is little motivation for a "Full Fee" agent to market the property out to the Agent community because the Full Fee Agent may be looking to represent both you, the Seller & the Buyer. If this is the case then the Agent is going to focus there efforts on trying to Attract Buyers Directly to themselves, relying on the Yard Sign, Open Houses & their own limited websites.

A flexible fee - choose your own commission approach agent will charge a predetermined, yet different amount dependent upon the way that the transaction comes together. If the listing agent is able to attract the buyer directly then they get a minimal increase in the overall compensation. This is a far cry from the amount charged by the Full Fee agent that double ends the property and thus doubles the commission. This is also a lower amount than the Discounter charges for double ending the property from the base 1% commission to a 300% increase for working with the buyer and seller.

Keep in mind that all of this is controlled and regulated by your own areas laws on agency and whether or not an agent can truly represent both parties to a transaction under a dual or designated representation agreement. Check to see what applies in your particular area.

Bottom Line, As with anything, if it sounds to good to be true, it probably is. Make sure that you select an agent and a structure when selling your home in Northern Virginia that provides you with the level of comfort that the agent is truly motivated to get your home sold and that you will be getting value for your commission dollars.