One of the big problems that sellers are facing in the current climate is the preservation of equity.  They are being squeezed while selling their homes.

Buyers are looking for a bargain, and there are bargains to be had… and any seller that needs to sell has to compete with foreclosures, short sales and other distressed properties.

Prices that sellers can command are down from just a couple of years ago, and many sellers are having a hard time dealing with the sense of loss of value from when they bought their homes.

For the most part, banks aren’t cutting loans… so when a seller sells their home, they have to pay it off…

And then there are real estate agents.  As much as many people would like us, we can’t afford to work for free, so commissions and selling fees need to be packed into that limited price.

So, what can be done?

Honestly, I’m not sure yet.  But, I have been looking at models from around the country, and from other countries.  I have been looking for pricing structures to at least lower the cost for sellers to sell their property… and at the same time not skimp on marketing and presentation.

There are a load of discounters out there.  Heck, my brokerage offers a flat rate fee program that is very reasonable, but it is far from full service.  And most of the discount models that I see follow the same path… they cut services to cut fees.

There have been a few companies that offered full service and a complete marketing package, but in the current business climate, they have largely folded.

Answer?

I’m getting closer.  Basically, I am working on a program which would be part flat fee, part commission.  It would lower the overall cost to the seller, while still providing a VERY full service brokerage engagement.  In fact, it would be a more comprehensive marketing package than most… even with agents charging traditional fees.

It wouldn’t be a replacement for the traditional fee structure… just another option.

In effect, I will soon be offering:

  • Low Cost, Flat Fee “Unbundled” program
  • Traditional Full-Service commission based program
  • Hybrid program that will include ALL of the marketing of the traditional service, but at a lower total cost

I’d love to hear from you with input on what you would like to see in the new program.  It isn’t done yet, and there is plenty of room for improvement and change.