The issue is out there and it needs to be addressed.  In many communities around the country, consumers have been pounding their fists against the table and some even their heads against the wall in frustration that they must pay six or seven percent to get their home sold.  Home sellers in Dallas, TX regularly comment that this percentage based commission is way too much to pay for the services that they need. 

In recent years, home sellers have even confronted agents with the issue that they can't afford to pay the commission based on lost equity in the home.  Other sellers still simply refuse to pay an agent $12,000 or more on the sale of their $200,000 home.  This is becoming more the rule than the exception that it has been for the last 20 years. 

In communities like Lake Highlands, the discount idea is really taking hold.  Home owners are taking notice of more signs and more SOLD signs from companies that charge less to sell your home, but still do everything that you need.  The use of discount or Flat Fee real estate agents and brokers has grown 300% in Lake Highlands for the past two years (since BigDBlog has been tracking.)  One glaring example of the success of the Flat Fee companies is a home that was listed and sold on Church Street just east of Audelia Road in February of 2008.  The home was listed and under contract within hours and closed within 30 days for a net full price offer to the seller.  Due to the broker charging a flat fee and not a traditional six or seven percent, the seller saved a substantial chunk  of money on the listing agent side.  In addition, the listing company (flat fee company,) also brought the buyer.  Since their model doesn't charge any buyer's agent commissions, the selle then saved the entire buyer's agent fee.  In the end, the seller saved over $8,000 dollars in real estate commissions and the buyers got a better than normal deal as well.  This is a true example of a win - win situation. 

While the traditional real estate community has not embraced limited service companies, they have accepted the flat fee companies fairly well.  Again in Lake Highlands, many listings are sold each year where flat fee companies cooperate with traditional offices to bring a buyer to their listings or to sell a listing to their buyers. 

In our wonderfully capitalist economy in the United States, this is a prime example of markets being efficient and consumers demanding a more affordable option.  As almost every other industry in America has been competitive based on price for generations, home sellers and buyers are finally seeing real estate companies supply a service to meet their reasonable demands.

Feel free to send questions as usual and of course comment at will.

BigDBlog