I’ve heard the phrase “You get what you pay for” many time during my career. Mostly because during the 16 year of selling homes in the Valley, primarily in Chandler and Gilbert area, I have always charged a flat fee. There is a mis-perception that flat fee real estate is discount real estate. That you cannot get full service unless you pay a high percentage to sell your home. That’s not the case.
To me, a discount Realtor is one that presents their services to a potential client and explain their fee is 6%. After a little more discussion at the kitchen table the Realtor is willing to reduce, or discount their fee to 5.5% or maybe 5%. MJD Group with Platinum Service Realty only charges a flat fee of $3000 for our listing services (1% for homes over 1 mil). We don’t charge more and we cannot charge less. We have a set business model in place that is both successful in marketing our clients home while still being profitable. So if a Realtor is willing to cut their fee, what services are they cutting? You would think they would go hand and hand… unless you were overpaying.
The Extra Bells and Whistles
Realtors are always trying to find the next best and biggest thing to promote their business and their listings. More is better right? It certainly looks good at a listing presentation if the Realtor can show that they advertise in this newspaper or that home magazine. They may promise to hold an open house every weekend until your home is sold. To capture more buyers they may put a “Text this number for more information” rider on the for sale sign. These might look like great ideas but what is the return on investment? With our flat fee listing service we focus our marketing to attract buyers. We don’t overcharge to use your home as lead bait.
What Doesn’t Work
When was the last time you said, or have heard someone say “I’m going to get the paper and look for a home”? In the information age print advertising is not effective. Less and less people read the newspaper and it’s also too slow. The best homes sell the first weekend. Do you really want to wait a week or a month to have your home in the paper? As for open houses, They are a good tool for Realtors to sell a home. Yes, You read that correctly. The problem is, they are NOT designed to sell the home that is being held open. Open houses provides a great stage for a Realtor to meet your neighbors and maybe a few “Looky Lous” that might be thinking of buying in a few months. This can be a great lead source for your Realtor. Maybe you should charge them while you’re forced out of your home for 3 hours?
What does work
The internet is where the buyers are. Depending on what study you read, between 92-95% of buyers go online to search for homes. With so many buyers in one place why would you spend extra money elsewhere to market a home? Now I am not saying that all you have to do is put your home for sale online and it will sell. You can get a better overview of our flat fee market plan here https://themjdgroup.com/selling-your-home What I am saying is that MJD Group with Redefy focuses our marketing where the buyers are. This allows us to pass the savings onto our clients by charging a flat fee. We do this by taking out some of the old, outdated, and sometimes expensive ways to market a home for sale. Yes “You get what you pay for” but you will not overpay for services that are not as effective.