You Get What You Pay For: Full-service vs. Flat-fee Agents

These days, ninety percent of real estate listings rely on full-service real estate agents versus flat-fee agents. While a flat-fee service may save money and be more appealing in a few instances, most sellers prefer the full-service route. Here’s why:

Incentivization

A percentage-based commission incentivizes the full-service real estate agent to sell the property for the highest possible price, since their commission increases with the sale price. This compelling incentive motivates the agent to work hard on the seller's behalf to get the best possible outcome.

Market dynamics

Real estate markets can be highly variable, with properties in some areas selling for much more than in others. A percentage-based commission takes this variability into account and ensures that agents are paid proportionally to the value of the property they sell.

Risk-sharing

By charging a percentage of the sale price, the real estate agent shares in the risk of the sale. If the property does not sell, the agent does not receive a commission, aligning the agent's interests with the seller's.

Flexibility

Real estate commissions can vary widely based on the property's value and other factors, so a percentage-based commission allows for more flexibility in setting fees. A flat fee may not be appropriate for all properties and may not accurately reflect the agent's effort and skill in marketing and selling the property.

In the end, selling your home is a big deal, both emotionally and financially, and getting top dollar for your house is a priority. Data shows that you can get incredible results with a full-service agent who has a proven sale-to-list price ratio. With a flat-fee broker, it’s hard to know the kind of service you’ll get; you could have a smooth, easy transaction and save a few bucks, or you could face the overwhelming stress of managing your home sale in order to make less money overall. To avoid the possibility of a bumpy real estate ride, relying on a full-service real estate agent is the way to go.