Realtor Commissions Affect the Asking Price of Homes for Sale

When a buyer begins looking at homes for sale, typically on the Internet, they very quickly get the feel of the asking prices in particular neighborhoods for homes with particular features. However, few buyers understand all that affects the asking price of a home, including the connection between realtor fees and asking price.

Here’s a quick look at some of the main components that go into the asking price of a home.

Component #1: What the Seller Needs From the Sale

Although you may not have considered this, the base price of most homes is due to what the seller needs to get out of the home. For instance, if a seller has a mortgage to pay off at $250,000 and would like to walk away with $50,000 in profit, then the house has to be listed in a way that allows for this to happen.

Sometimes, this is not possible. Sometimes, other factors about the house or the market will keep the seller from getting what they want. In those instances, the seller has to decide to stay in the home or take a loss.

Component #2: What the Home Has To Offer

Homes with desirable upgrades, features, and amenities will sell for more money than a home without them. The more desirable a home from the standpoint of a buyer, the higher the price can be.

Upgrades, features, and amenities can include such things as:

  • Updated gourmet kitchen
  • Updated bath
  • Sun room
  • Built-in electronics
  • Inground pool
  • Garage
  • Basement
  • Open/Versatile floor plan
  • Deck
  • New windows, insulation, and roof
  • Fireplace
  • And more

Component #3: Comparable Homes in the Area

The asking price of a home is often determined by conducting a comparable market analysis (CMA). This is a way to look at similar homes in the area that have recently sold to determine the value of the home currently for sale.

The CMA will look at homes within the same area that have a similar number of bedrooms and bath, similar square footage, and similar upgrades. This helps the seller know what buyers are expecting to pay in the area.

Component #4: The Local Real Estate Market

The price of a home can be affected by the local market. When there are more buyers than sellers, this is known as a sellers market. In this case, a home can often be sold for more money because the inventory is low compared to the number of buyers.

Buyer’s markets are just the opposite. In this case, there are far more houses for sale than buyers who want to purchase. In a market like this, seller’s tend to lower the asking price since too much inventory is available.

In a balanced market, there is an even number of homes compared to the number of buyers. In this market, home prices fall to the middle rather than at either extreme.

As a home seller considers their asking price, they will also consider the market.

Component #5: Broker’s Commission

This particular piece of the puzzle is rarely talked about, but influences the asking price of a home by a full 6%. To understand this, let’s consider the following:

  • The home seller wants to walk away with $300,000 to pay off their mortgage and have some left over for the down payment of a new home.
  • The brokers want 6% to sell the home.
  • Therefore, the asking price will need to be at least $300,000 plus the 6% ($18,000), so an asking price $318,000 plus a little extra for negotiating room.

If the brokers asked for less money, the asking price of the house could be less. This means the seller could put the same or more money in their pocket while at the same time creating a scenario where the buyer has to pay less for the home. This creates a win-win situation for both parties making the sale easier and more straightforward.

This is the case with Recadia, a flat, fee full service broker. Instead of asking for $18,000, Recadia asks for a flat fee of only $3,000 to list the house and suggests offering a flat fee to the buyer’s agent as well.

To learn more about Recadia’s flat fee, full service model read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. Feel free to contact us to learn more by calling (214) 281-8500. We would be happy to help you with your home buying and selling needs.

Is a Flat Fee MLS Broker Worth What You Pay?

Today’s home sellers are savvy. They understand the Internet, know how to use technology, and feel that they can accomplish just about anything if armed with the right information – including the sale of their home.

Because of this belief, and the broker’s inability to justify how their value matches the high commissions they charge, some sellers choose to use a Discount Broker or Flat Fee MLS Broker instead of paying a 6% commission. For a flat fee of $500 to $1000, these brokers provide a specific list of limited services, and the seller does the rest.

What Do Discount Brokers Provide?

For years, traditional brokers touted their ability to put a home onto the Multiple Listing Service (MLS). Without access to this database, it is almost impossible to sell a home. For people selling on their own, they were out of luck.

However, as consumers began demanding to pay less for services, a few brokers chose to offer limited services for a flat fee. These limited services included a few of the services that were exclusive to a broker.

Almost all discount brokers will include your property in the MLS database. Additionally, some may offer a few additional services, such as:

  • Listing on specific online sites, such as Zillow, Trulia, and
  • A website platform with buyer traffic
  • Articles, ebooks, and blog posts about selling a home

The price ranges from about $500 to $1,000.

Is This The Whole Price?

Unfortunately, once you pay up to $1,000 for this limited service, you will still have quite a bit of money to spend to get your house sold.

For instance:

  • Marketing materials including brochures, fliers, and signs needed to help others know your home is for sale and what your home has to offer: $250+
  • Home staging and photography that allow you to show off your home in the best possible manner: $400+
  • Legal paperwork to be sure that contracts are binding and follow all the rules associated with Texas real estate laws: $600+
  • Hours and hours of your time spent on marketing, phone calls, showings, negotiations and more since you do not have a broker representing you: 40+ hours
  • And more

By the time you add in these other costs and your own hours spent, you can easily triple the cost of the discount broker investment.

Is the Price You Pay Worth It?

The question then becomes, is a discount broker worth what you pay? It is true that paying a discount broker and then the additional fees can be significantly less than paying 6% of the selling price of your home. However, there is an equally true fact that could make you think twice. Statistics from the National Association of Realtors shows that 88% of people who sell their home without the full representation of a listing agent are not successful selling their home.

These home sellers eventually sign with an agent. The money they spent out of their pocket to the discount broker and for additional services is lost forever. They start from scratch with an agent that will get 6% commission.

The reason this happens is that listing agents do far more for their clients than list on the MLS or provide a dedicated website for buyers. Their knowledge and experience has value that can’t be gleaned from a blog post. Nonetheless, 6% is a big price to pay.

A Better Option

What if you were to learn that there is a better option? One that provides you with all the services of a full service broker but without the ridiculously high cost?

Recadia has created a system that does just that. With their flat fee, full service model, Recadia is giving home sellers the full service they need for a successful sale without asking them to overspend.

Recadia’s realtors will provide you with all the services a seller would expect from a traditional broker. Rather than sellers having to print signs and marketing materials, take photos, field phone calls, negotiate and accept offers, and figure out all the legal issues associated with real estate, Recadia does it all and more.

Sellers love this idea because it is easy on them while being fairly priced. Now, instead of spending hours trying to sell their home, they can spend those hours working, enjoying their family and friends, and moving on to the next stage of their life.

To learn more about Recadia’s flat $3,000 fee that includes a full service realtor, read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. Then contact us at (214) 281-8500 before you waste your money and time on a discount broker. We would be happy to help you with your home selling needs.

How Changes to the MLS Changed Real Estate Commissions Forever

As with many things in the world, real estate is changing. Some of the biggest changes have to do with the Multiple Listing Service (MLS). Once an exclusive database for brokers, the syndication of much of its contents to online websites has dramatically changed the public’s opinion about the value of a broker.

The MLS Then

Years ago, before the Internet, real estate agents had a secret real estate weapon known as the Multiple Listing Service (MLS). The MLS is a database of all the houses for sale in any given area and was used to help sellers find buyers for their home. If you wanted your home added to the MLS, then you had to go through a broker. If you wanted to know what houses were for sale, you had to go through a broker. There was no other way.

Because of the exclusive nature of the MLS, brokers used their ability to access this database as their unique selling proposition. They told buyers and sellers that the MLS was the main reason they were valuable, rarely explaining the many other functions they performed.

For the rights to the MLS, buyers and sellers were willing to pay the commission set forth by brokers, which was typically 6% of a home’s selling price. Even though some people felt the price was steep and even wondered why it was a percentage based commission, they paid the price with the understanding that the MLS made it worth their while.

The MLS Now

However, not too long ago, things began to change. Much of the information on the MLS that used to be exclusive has been syndicated. This means that online sites, such as Zillow, Trulia,, and others can show anyone with a computer what is for sale.

Although a broker is still needed to add anything to the MLS, the data found within is no longer exclusive. Almost overnight, brokers had to rethink their selling proposition. They had to quickly re-educate the public about what they did and why they were still valuable to the selling process.

Public Opinion About the 6% Commission

Because the public had been conditioned to believe that the biggest reason they needed an agent was access to the MLS, consumers began to wonder if a broker was even necessary anymore.

Agents began to create lists of things they did for their buyers and sellers, but consumers were not as impressed as they had hoped. In fact, many sellers looked at the list and decided that with advancing technology and their social networking skills, that they had what it took to sell their own home. This led to the birth of many For Sale By Owner (FSBO) sites, which, for a flat fee, would provide a few services like a dedicated marketing website. Discount brokers also popped up, providing the inclusion of a property on the MLS for a flat fee.

Many sellers were willing to sell on their own to save money on the high fees. Unfortunately for them, the failure rate for FSBO and discount broker sales is extremely high. 88% of those that try to sell their home on their own fail and end up listing with a broker.

Despite the odds, sellers were still not convinced that paying a percentage-based commission for the sale of their home was right. The syndication of MLS data, along with technological advances had changed everything, and the consumers knew it.

Flat Fee, Full Service: A Better Way

Recadia understands the value we provide to our clients. We recognize that selling on your own or hiring a discount broker does not lead to success. However, we also understand that a percentage based commission no longer makes sense given the changing face of real estate.

That is why we have created a flat fee, full service model that gives our clients exactly what they need to have the best odds at success at a fairly priced flat fee. With Recadia, you will get:

  • A listing presentation package
  • An overview of current market conditions
  • A marketing plan including MLS, listing on major online sites, signs, etc
  • Professional HD photos
  • Suggestions for increased curb appeal outside and first impressions inside
  • Fielding potential buyers and buyer’s agents
  • Showings
  • Reviewing offers
  • Negotiating and preparing counter offers
  • Legal contracts
  • Coordination of inspections and appraisals
  • Coordination of brokers and lenders at closing
  • Solving title problems
  • Review of documents
  • Communication that keeps you up-to-date on the process
  • And much more

However, instead of paying a commission based on your home’s selling price, you will pay a reasonable flat fee of just $3,000, saving you thousands. To learn more about Recadia’s flat fee, full service model, you can read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions.

If you want to use the full service of a traditional broker but don’t want to pay the traditional 6% commission, then Recadia’s flat fee, full service model is for you. Give us a call at (214) 281-8500. We would be happy to help you with your home buying and selling needs.

The Internet is Changing the Face of Real Estate Commissions

Real estate agent commissions are in the midst of a change. For decades, the traditional 6% commission was split between buying and selling agents. However, with the evolution of the internet and technologies that rely on it, home buyers, home sellers, and real estate agents have more resources to use when buying and selling homes. These resources make the process easier and more efficient for the agents and allow home buyers and sellers to do some of the work themselves. How can agents currently justify taking 6% of the price of the home for what appears to be less work on their part? In anger and frustration, consumers are beginning to search for alternatives.

The Internet Empowered Buyers

Buyers used to completely rely upon a real estate agent to help them find homes that were for sale. Agents had access to the Multiple Listing Service (MLS) and would use it to find a list of homes for their buyers.

With the Internet and online sites such as Trulia, Zillow, and, buyers now have access to much of the MLS data and are searching for homes on their own. They no longer rely on realtors to find them a home. Instead, they just head to an online site, put in specifications that match their needs, and watch homes pop up on their screen.

The Internet Empowered Sellers

Sellers also now have access to information that used to only be in the hands of agents. This information can be found through online real estate sites, specific realtor’s websites, city/county sites, and more.

Can see what homes are for sale in their area and for what prices.
Can get an understanding of the market by seeing how many homes are for sale and how long the homes stay on the market.
Have access to marketing sites specifically for homes.

New Fee Models Emerge

As buyers and sellers begin taking on some of the tasks of an agent, they no longer want to pay a commission based on the sales price of a home. That has led to many new models of realtor fees, but only one model that gives buyers and sellers what they need at a price that makes sense.

  1. For Sale By Owner (FSBO): Many sellers erroneously believe that FSBO sales are free and only require some sweat equity. The truth is that FSBO sales can be quite costly, including professional fees for photographers, stagers, printers, and lawyers, as well as fees for listing on the MLS, major online sites, signs, and more. Even more importantly, those that sell on their own usually fail. A recent statistic by the National Association of Realtors shows that 88% of FSBO homes do not sell and eventually need an agent.
  2. Discount Brokers/Flat Fee MLS: For sellers that believe that the only value a listing agent brings to the table is the MLS, they sometimes choose to use a discount broker, sometimes known as a flat fee MLS broker. These services merely add your property to the MLS database for a flat fee and offer few other services. In essence, this is just an enhanced FSBO. Even with the addition of an MLS listing, most sellers that go this route struggle.
  3. Flat Fee Full Service: The problem with the previous models is that sellers do not understand what an agent can do for them. If an agent’s value was simply the MLS, then these models would work. However, agents provide more than a simple MLS listing or the ability to search the database. This has led to the newest model known as flat fee, full service. In this model, offered by Recadia, buyers and sellers get all the services offered by traditional agents but at a fairly priced flat fee.

Why Flat Fee, Full Service is a Good Choice

The truth is that agents bring a lot of value to their clients that goes far beyond the MLS and what can be found on the Internet.

Listing agents provide:

  • Knowledge about the variables to consider when pricing a home
  • Marketing knowledge and experience
  • Dedicated platforms to market your property
  • Ability to tell qualified buyers from unqualified buyers
  • Negotiation skills to help you turn a mediocre offer into an offer you can accept
  • Legal contracts that are binding
  • Solutions to problems that keep a property from getting to closing

Buyer’s agents provide:

  • Ability to see issues before they arise, offering solutions that work
  • Access to experts that can help buyers such as lenders, appraisers, and inspectors
  • Find properties for sale that are not listed on the MLS
  • Understanding of what makes an offer acceptable in different situations
  • Knowledge of contingencies you should have in an offer to keep a buyer safe
  • Ability to negotiate to satisfy both the buyer’s and seller’s needs

There is no doubt that brokers add value, but the manner in which they provide services for the consumer has been streamlined in recent years due to technology. Recadia understands this and utilizes technology to improve efficiencies and passes the savings onto their clients through the flat fee, full service model.

For a reasonable, fairly priced flat fee, Recadia agents do everything traditional brokers do for buyers and sellers. Now, both buyers and sellers have the option to use an agent without paying a fee based on the sale price of a home. Instead, they can pay a fee based on the value an agent brings to the table.

To learn more about Recadia’s flat fee, full service model, you can read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. You can also give us as call at (214) 281-8500. We would be happy to help you with your home buying and selling needs.

Choosing a Listing Agent: Finding the Right One at the Right Price

Did you know that that National Association of Realtors (NAR) is the largest trade association in the United States? NAR membership at 1.3 million constitutes about half of those who are licensed to sell real estate. That means when you decide to choose a listing agent, there are 2.5 million people qualified to help.

So, how do you choose to find the best one for you? Here are some tips that can help you find an agent that will do a great job at a great price.

Tip # 1: Find an Agent With Great Experience

Agents come and go, so be sure that you find one that has experience, especially experience selling homes in your area. Recadia’s agents have 25+ years combined experience, allowing us to provide marketing techniques, selling solutions, and negotiating tactics that work. We keep on top of market trends and use our experience to benefit you as you sell your home.

Tip # 2: Find an Agent Who Is Committed To Selling Homes

Vincent Lombardi once said, “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.” This is so true in the field of real estate. A good rule of thumb: If an agent isn’t working full time as a fully committed broker, look for someone else.

Tip # 3: Find an Agent With Amazing Communication Skills

When you are selling your home, it is very important that you can get in touch with your agent. It is also important that potential buyers or buyer’s agents can communicate easily with your agent. Although no agent is available 24/7, you want to find one that communicates their hours to you, is responsive to your needs and the needs of potential buyers, and keeps you in the loop. After talking with hundreds of home sellers, Recadia discovered that lack of communication was perceived as a big problem. That is why they have introduced a communication system that will let their sellers know what is happening at all time. Recadia’s communication plan includes scheduled weekly update calls with sellers and an online communication platform that sellers can check 24/7 to see the latest actions on their house sale.

Tip # 4: Find an Agent With a Strong Website

Real estate agents who are truly serious about supporting their own client’s needs must have a strong web site with an advanced home search capability and a digital marketing strategy to attract buyers. 95% of buyers begin online, so having an interactive website that is up-to-date is key. Check out

Tip # 5: Find an Agent That Is Full Service

When choosing an agent, be sure that they offer all the services needed to sell your home quickly, easily, and put the most money in your pocket. Here are some of the services a good agent will offer:

  • Market analysis
  • Pricing your home
  • Identification of key selling points
  • Addition of your home to the MLS and major online sites such as Trulia, Zillow, and
  • Creates a customized marketing plan
  • Fields calls from potential buyers and buyer’s agents
  • Shows your home
  • Negotiates offers
  • Creates binding contracts
  • Helps coordinate appraisals and inspections
  • Works with issues that could derail a closing
  • And more

Tip # 6: Find an Agent That Doesn’t Use a Percentage-Based Commission

Buyers and sellers want the same thing. They both want to buy or sell with the least amount of hassles in the fastest amount of time. The difference is that a buyer wants to save money and a seller wants to make money. If you choose an agent that offers full service real estate on a flat fee, it is possible for both the buyer and the seller to win on the same sale.

Traditionally, agents receive and split 6% of the selling price of the home as their commission. Because of this large sum of money, the seller has to price their home higher to net the money they want, which can lead to more hassles and more time on the market.

Recadia offers a flat fee, full service product. For just a $3,000 flat rate commission, Recadia will help sellers sell their home quickly and easily, providing the same benefit to buyers. Everyone can come out on top.

Find out more about Recadia’s flat fee, full service model, by reading How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions.

As you can see, although many agents exist in the state of Texas, great agents are fewer and further between. Recadia has the experience, commitment, and communication you desire, providing you with all the services you need to sell a home at a flat fee, saving you thousands of dollars. Call us today at (214) 281-8500. We would be happy to discuss your specific situation with you and show you how we can sell your home quickly, with little hassle, and put more money in your pocket.

Is FSBO A Good Option In Order To Save on Real Estate Agent Fees?

You are ready to put your home on the market, but you hate the idea of agents earning 6% of the sales price of your home. As you research your options, you read a lot about selling a home on your own (FSBO) and begin considering this option in order to save on fees.

However, before you do, you should understand what you will be required to do, the true cost of a FSBO sale, and the odds of success. You should also look closely at a lesser known option that can save you thousands, provide you with full real estate services, and dramatically increase your odds of a successful sale.

What You Will Need To Do

Selling a home requires more than listing your home on the Multiple Listing Service (MLS) and sticking a sign in your front yard. Here are some things potential FSBO sellers need to consider before going this route.

  1. Price Your Home Correctly: You will need to price your home so that you do not try to sell too high, thus eliminating buyers from your potential market pool, but also not too low so that you don’t leave money on the table that could be in your pocket. Understanding how to determine your home’s value is tricky, and online valuation tools are often inaccurate.
  2. Be Available During the Day, Evening, and on Weekends: Real estate agents field calls from buyers and give showings 7 days a week and during a wide range of hours. FSBO sellers need to be available when a buyer wants to see a home. If your hours are limited, you will be limiting your ability to sell the home.
  3. Understand Marketing: It is important that buyers know your house is for sale. You will need to find a way to get your home listed on the MLS and major online sites. You will also need to worry about signs, brochures, ads, photos, and social media in a way that looks professional and reaches your target audience.
  4. Find Qualified Buyers: Not everyone that calls about your home is actually qualified to buy it. Real estate agents know how to identify the lookers from the buyers. If you don’t know how to do this, you will waste a lot of time and energy. You may even waste money if you have to take time off of work to show your home to someone that will never buy.
  5. Handle Negotiations: Once someone puts in an offer on your home, you will need to be able to negotiate on the price, as well as on other aspects of the offer such as contingencies. It is important that you find a way for the offer to be the best it can be for you. It is also important that you keep your emotions out of the mix. Many homeowners find it difficult to hear negative comments about the home they love, often leading them to poor negotiations. Poor negotiations can often lead to the loss of a sale.
  6. Working With Other Realtors: Your home is most likely going to sell when a buyer’s agent brings a buyer to your home. You will spend several hours a week talking with realtors that want to represent you as a listing agent. Be sure to include this time as part of your weekly schedule when determining if you can sell on your own.
  7. Create Legal Paperwork: The sale of a home is a legal process that requires specific paperwork worded in specific ways. You will also need to know what disclosures are necessary for the buyer. If your paperwork is not in order, the sale can be voided, leaving you with the cost of a resale and/or court costs.

True Cost of a FSBO Sale

Many articles touting the FSBO process suggest that selling on your own is a cheap alternative to using an agent. Although it is less expensive, do not be fooled into thinking it is free. Here are some costs associated with selling a home on your own.

  • Listing on MLS and other online sites: $500 to $1000
  • Signs and other marketing materials: $250 or more
  • Photography and home staging: $400 or more
  • Legal paperwork: $600 or more
  • 40+ hours of time for marketing, phone calls, home showings, negotiations, and other agent duties
  • Other miscellaneous costs and hours

The Odds of a Successful Sale

Of course, the purpose of putting your home up for sale is to actually get your home sold. That’s the biggest problem with a FSBO sale. The most current statistics from the National Association of Realtors (NAR), shows that 88% of FSBO homes do not sell and that FSBO sales have been in decline for the past 12 years.

This means that, as a seller, you may end up paying several thousand dollars in fees to sell on your own, only to have your home sit on the market for months. Then, when you cannot wait any longer, you will end up signing with an agent. All the money you spent will be lost.

The Flat Fee, Full Service Alternative

If you don’t think percentage-based fees are the right way, but now realize that FSBO is not a good option, what should you do? Take a look at the lesser known flat fee, full service option offered by Recadia.

Recadia offers all the services you’d get with a traditional broker without a commission tied to the price of your home. For a flat fee of $3,000, you will get:

  • Agents that give you full services from listing to marketing to showing to negotiations to closing so that you don’t have to do the work yourself
  • Fantastic communication allowing you to know where the sale is at all times
  • Better odds for a successful sale of your home

To learn more about Recadia’s flat fee, full service model, you can read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. If you have other questions or want to sign up now, please call Recadia at (214) 281-8500. We would be happy to discuss your specific situation with you and show you how we can sell your home quickly, with little hassle, and put more money in your pocket.

Why You Should Avoid Discount Brokers When Trying To Reduce Realtor Fees

You may have begun to wonder if the typical 6% agent commission is worth the price for help selling your home. Even if you could get a listing agent to reduce the commission to 5%, you may still wonder if tying their commission to the price of your home makes any sense. If so, you are not alone.

Some home sellers decide that a percentage commission is not right for them and look for a way to increase their profits by limiting realtor fees. The most common way to do this is through the use of discount brokers. These brokers offer a seller a limited number of services for a fixed price.

On first glance, this looks like a great option. Who wouldn’t want to sell their home offering just $500 to a broker? However, first glances can be quite deceiving. Let’s look at why you should avoid discount brokers as well as why you should consider the newest alternative known as flat fee, full service brokerage as offered by Recadia.

What the Flat Fee Buys

The discount brokerage fee evolved when agents realized that sellers were unhappy with high realtor fees based on a percentage of the home’s sale price. To combat this, they came up with a plan that offered a basic set of services for one low flat rate.

Agents understand that listing a home on the Multiple Listing Service (MLS) is the best way to market a home. It allows online sites to list the property, allows other agents to find the property, and allows buyers looking for properties to find it online. For years, they touted this as the value they added to a sale.

Discount brokers took this knowledge and offered a limited package that:

  • Lists a home on the MLS
  • Add homes to the main online sites such as Zillow, and

Because some sellers don’t understand all that goes into selling a home, they buy into the idea that they only need an agent to provide the MLS listing. If that were the case, then spending $500 rather than the $18,000 paid if sold the traditional way would be a great deal.

What the Flat Fee Doesn’t Buy

The problem is that buying and listing agents do far more for their money than list on the MLS. They also do the following:

  • Help stage the home: Cost to seller if hiring a stager = $200
  • Take photos of the home: Cost to seller if hiring a professional photographer = $200
  • Create a marketing plan: Cost to seller = 10 hours of time
  • Provide marketing materials: Cost to seller if hiring a printer = $200
  • Provide signs: Cost to seller if buying = $50
  • Field phone calls from prospective buyers – Cost to seller = 20 hours of time
  • Show the home: Cost to seller = 10 hours of time
  • Deal with other realtors: Cost to seller = 6 hours of time
  • Help with negotiations: Cost to seller = 4 hours of time
  • Draw up legal papers: Cost to seller if getting an attorney = $600
  • And more

Even at the lowest estimate, you will have to spend another $1250 and 40 hours of your own time. If your time is worth $25 an hour, that is an extra $1000. Your total out of pocket is now $2750 plus a lot of hassle.

The Odds Are Not In Your Favor

Eighty-eight percent of homes that go on the market without a listing agent do not sell. This means the odds of a successful sale using a discount broker are stacked against you.

It is even worse if you don’t work with a buyer’s agent. However, doing so will cost you more money because buyer’s agents expect to be paid 3% of the selling price. In our example, that is another $9,000.

To recap, working with a discount broker will cost you:

  • $11,750 if you work with a buyer’s agent
  • 40+ hours of your time
  • The hassle of doing everything on your own
  • An 88% failure rate

A Better Way

If the percentage-based fees aren’t a good fit and the discount brokers don’t provide what is needed, what is a seller to do? We suggest that you look at the flat fee, full service model of real estate offered by Recadia.

Recadia’s flat fee, full service model provides you with all the services you expect from an agent without a fee attached to the selling price of your home. Forget buying your own signs, hiring a photographer, fielding phone calls, or trying to wade through legal paperwork. For a flat fee of $3,000, Recadia will do it for you.

Recadia offers:

  • Full real estate services
  • Flat fee of $3,000
  • No hassles
  • An upgraded communications system that keeps you up-to-date at all times
  • A greatly improved chance of selling your home

You can learn more about Recadia’s model by reading How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. For further information or to have your questions answered, please call Recadia at (214) 281-8500. We would be happy to discuss your specific situation with you and show you how we can sell your home quickly, with little hassle, and put more money in your pocket.

6% Real Estate Commission, Discount Fee, and Flat Fee Full Service: What Are the Differences and Which Should You Choose?

If you are selling your home, you may be getting mixed signals about the best way to get it done. Some people will say, “You have to pay a broker a 6% commission if you want to sell your house.” Others will say, “Brokers don’t do anything other than get you listed on the MLS. You can pay someone to do that for you and save a bundle.” While some new, forward-thinking companies suggest that both are wrong, saying, “You need all of a broker’s services, but you don’t need to pay a high percentage-based commission.”

With so many differing opinions, how can you know which one is right for you? To determine the best choice for you, let’s look at three main real estate models: the traditional percentage-based fee, the discount fee, and the flat fee full service model.

6% Commission Model

This is the most common model of real estate fee structures in the marketplace. It has been around for decades and consumers, until recent years, simply paid the commission without question. Here is how it works.

A listing agent and seller create a contract stipulating the listing price of the house, the listing agent’s percentage (usually 3%), and the buyer’s agent percentage (usually 3%). The listing price of the home is usually increased enough to make up for the cost of these fees. If a homeowner wants to put $275,000 in their pocket, they will have to put their home on the market for about $293,000 to cover the fees.

For their 3% of the selling price of the home, the listing agent will market the home, add it to the MLS, help field calls, do showings, negotiate offers, and get the home to closing. The buyer’s agent, for their 3% will help a buyer find your home, show the home, help them with their negotiations, and help the buyer through to closing.


You have a professional working for you to help you get the highest sale price for your home. The work you do during the sale is limited to fixing up your home prior to putting the sign in the front yard, keeping it clean for showings, and providing needed paperwork to the agent.


6% of the sale price of your home goes to your listing agent and the buyer’s agent. Even if you create a contract asking for 4% or 5%, what you pay still depends on the sale price of your home rather than the value of the services provided by the agent.

Discount Fee Model

Some sellers believe that the only thing a broker does that is of any value is get the home listed in the Multiple Listing Service (MLS). They believe, with the advent of technology and their ability to use it, that they can do everything that a broker can do and not have to pay the high fees. Some brokers agree and created what is known as the flat fee MLS or discount fee model. Here is how it works.

A seller approaches a discount broker. The broker, for a flat fee, agrees to get the house listed on the MLS. Some discount brokers will also ensure the house is listed on some of the major Internet sites like Trulia, Zillow, and Once the house has been listed, the broker has finished their work, and the seller does the rest.


Depending upon what the broker actually provides, a seller can get their home listed with a discount broker for around $500 for their services. On a $400,000 home, this is a savings of over $25,000. On the surface, this seems like a huge savings.


Understanding the market, determining an asking price, marketing, showing the home to prospective buyers, fielding and negotiating offers, creating legally binding contracts, dealing with appraisers and inspectors, and getting the home to closing is completely up to the seller, which leaves the seller paying the cost in time and money to get this accomplished. Before long, the $500 paid to get listed in the MLS blossoms to thousands as they get signs, professional photos, legal contracts, and more. It grows even more if a buyer adds in the value of their time. To make matters even worse, statistics show that 88% of homes that go on the market without a realtor do not sell.

Flat Fee, Full Service Model

Recadia believes in a better option for those who want to sell a home, an option that gets rid of the cons while keeping the pros. Thus, the flat fee, full service model is the right choice. Here is how it works.

A seller contacts Recadia to be their listing agent. The contract includes a listing price and suggests a low, flat fee to be split between the listing and buyer’s agent. Because the fee is so low, the seller has more options when creating a listing price on their home, including more money in their pocket. This effectively gets rid of the CON for the 6% fee. Fees are drastically reduced saving thousands of dollars and there is no commission based on the value of the home.

Then, the Recadia agent begins doing what a full service broker does, because they are a full service broker. Whether it is marketing, showing a home, fielding phone calls, helping weed out the tire kickers for the real buyers, negotiating offers to help you get what you need and deserve, or getting the paperwork ready for a closing, Recadia is there the entire way. This effectively gets rid of the CON for the discount broker. Flat fee, full service sellers have someone with them the whole way.

To learn more about the flat fee, full service real estate model at Recadia, please call us at (214) 281-8500. We’re ready to help you put thousands more in your pocket while getting the full service you need.

Why You Need a Real Estate Agent to Sell Your Home But Should Never Pay a Percentage-Based Commission

You are ready to sell your home, so you begin looking for a seller’s agent to represent you. However, you dislike the idea of a 6% commission. It seems like a lot of money, and you aren’t even sure what an agent does to earn their keep. This article will explain your options, help you understand the value of having an agent in your corner, and explain a new option that gives you exactly what you are searching for.

Your Alternatives

If you don’t like the idea of a 6% commission, you have several options.

  1. You can just take a deep breath and sign a contract that gives the agents 6%
  2. You can negotiate a lower rate with an agent, suggesting something like a 5% commission
  3. You can pay a discount broker with a flat fee structure that gets your home listed on the MLS but little else.
  4. You can sell your home on your own (FSBO)
  5. You can sell your home using the flat fee, full service model offered by Recadia

Let’s look at each alternative a little more closely.

#1 Signing Anyway

You can simply do what most sellers do and sign a contract giving the listing and buyer’s agents 6% of the selling price of your home. A 6% commission will give you full service while significantly reducing the amount of profit you make at closing.

#2 Lower Commission

Many sellers find an agent willing to take less commission. They feel great about saving an extra 1%, but that still doesn’t remove the problem with a percentage-based commission. Namely, an agent’s job doesn’t increase or decrease due to the price of a home, so why should their pay be connected to the price of the home? Click here to read more about this fallacy.

#3 Discount Brokers and #4 FSBO

We’ll look at these two options together because both remove the agent from the picture altogether. With these options, you will do the work of the agent yourself and “earn” the commission yourself. The problem is that 88% of homes that go on the market this way never make it to closing. Those are terrible odds.

#5 The Better Alternative

There is a new model in real estate known as the flat fee, full service model. In this model, the selling agent takes a fairly priced flat fee and offers the buying agent a fairly priced flat fee. For this fee, the selling agent does everything a traditional 6% commission agent would do to help you sell the home, without the unfair prices. As a customer, not only will you have a full service agent helping you sell your home, you will save thousands of dollars. Because of this fee structure, both the buyer and seller can win financially, making your home easier to sell. Who wouldn’t want a win-win situation that provides the service you need, costs less money, and gives you a higher profit?

What Does an Agent Do For Their Money?

Although most homeowners feel that 6% is too much to pay for the services of a real estate agent, most will agree that those services are worth something. Before you decide to “go it alone,” with dismal odds of success, let’s look at what a listing agent can do for you.

  • Understands the Market: The real estate market can be tricky and includes things like number of houses versus number of buyers, days on the market before being sold, economic factors, and even seasonal factors. A good agent knows how to look at these numbers to help you come up with the best plan of action for selling your home. Although you can get this information online, understanding what the numbers mean and how they affect the sale of your home is part of an agent’s responsibility.
  • Determines the Asking Price: With technology, homeowners believe they can easily determine the market value of their home. The truth is that although information abounds on sites such as Trulia, Zillow, and, it is impossible to know which information is correct as each site may produce different results. This means that it will be far more difficult for you to create true comps to determine the correct asking price. However, an agent has data that a homeowner does not have.
  • Identifies Key Selling Points: You love your house and know why you love it. However, you may not be aware that buyers in your area are looking for things like tiled showers or a working fireplace, for example. An agent, however, because they work with buyers and sellers all day long, know exactly what they are searching for and can help you list points about your house that will create a buzz among buyers.
  • Adds Your Home to the MLS: If a home is going to sell, it almost always needs to be listed on the Multiple Listing Service (MLS). This is how other agents find your home and buyers find your home at online sites. Even though you can pay a discount broker to add your home to the MLS, you won’t have access to that listing yourself. Having an agent you know and trust create a solid MLS listing is very important. While at it, an agent will also ensure your home is promptly and accurately listed on the major online sites such as Trulia, Zillow, and
  • Coordinates Showings and Buyer Inquiries: Having an agent ready to welcome potential buyers and answer any questions they may have is a real plus for many sellers. Because this is an agent’s job, they don’t have to rearrange their whole schedule to accommodate those that wish to see the home. They can also take buyer calls, weed out the window shoppers from the serious buyers, and determine who is a qualified prospect.
  • Negotiations and Contracts: Negotiating an offer can be tough, especially if the offer is too low or asks for too many changes to the home. Nothing feels worse than having someone lowball a price when you love a home with all your heart. The truth is that homeowners feel strongly about their home, and this can be the number one deal killer. An agent can easily take a step back and react with professionalism because they understand the market and stay focused on keeping the most money in your pocket. Agents are there to help temper the emotional aspect of selling a home, which can be a stress reliever for the seller. Additionally, they know exactly what paperwork is needed and can be sure that the contracts signed are legally binding.
  • Closings: Until a home has gone through closing and funding, it has not sold. Things like low appraisals, issues with the title, inspection findings, and a buyer’s inability to get financing can all derail a sale. An agent has the expertise needed to work through these issues, often guiding a home to sale that could have ended in disaster if being handled alone.

Flat Fee, Full Service Makes Sense

Once sellers understand how much an agent does for the sale of their home, they are typically eager to get one on board, but most still chafe at the idea of 6%. That’s why Recadia developed their flat fee, full service model. We understand that we offer a great value to our clients. We also understand that due to technology, which has made our job more straightforward, a 6% commission is no longer warranted.

With Recadia’s model, buyers and sellers get all the services traditionally offered by agents, plus a few perks rarely offered by other agents, like a 24/7 communication plan. This is all done for a flat fee that makes sense for the work done. In the end, the buyer and the seller are winners, and the agent gets paid fairly for the work they perform.

To learn more about this win-win situation, give us a call at (214) 281-8500. We’re ready to help you save thousands without skimping on services.

The Big Illusion About Real Estate Commissions: Buyers, Not Sellers, Are Footing the Bill

You’ve decided that you want to buy a house, so you do what nearly every person does in the age of technology – you get online. Once you’ve done some browsing and have ideas about what you want, you begin your search for the right buyer’s agent. Of course, one question you ask is, “How much will it cost me to have you represent me as a buyer’s agent?” The answer you will hear is, “It won’t cost you a thing. The seller pays my commission.”

So, you choose an agent you like, find a new home, and live happily ever after.

Except, that the answer you were given is not the truth! Whether you realize it or not, and whether your agent understands it or not, you, not the seller, will pay your realtor’s commission. Even more importantly, you will also be footing the bill for the seller’s agent’s commission as well.

How Can This Be?

Most initial reactions to this last paragraph are similar. Incredulous. Disbelief. Dismissive. A combination of all of these and more. That’s because for years and years, as long as most people can remember real estate transactions, we’ve been told that the seller pays the fees. Even the seller feels this is true, so it isn’t surprising that most people think this claim of the buyer paying the commissions is off-base when they first hear it. However, once the statement is made, many wonder how the claim can be made and how it might pertain to them.

To really understand, let’s look at one very important question that will get your mind thinking in the right direction. The question has a simple answer, but can offer a profound realization:

Who is the only person at the closing that brings any money to the table?

This first question leads directly to a very important second question:

If the buyer is the only person with money, how can the seller be footing the bill?

Walking You Through the Logic

Jane sells a house using a traditional realtor who charges a percentage-based commission. Jane and her realtor sign a listing agreement. This agreement states that Jane will list her home for $400,000, her agent will receive a 3% commission, and the buyer’s agent will receive a 3% commission.

Note here, that this agreement is between the seller and their agent and no one else.

Now, when Jane’s realtor puts her house on the Multiple Listing Service (MLS), the agent will state in the private remarks that the buyer’s agent will get 3%. In essence, the agent has now “contracted” with his fellow agents that if they bring him a buyer, he will pay them a 3% commission.

A buyer’s agent shows the home to a prospective buyer who makes a full-price offer on the home, and Jane happily accepts the offer.

Keep in mind that the buyer had no say in how much their agent earned to show them the house. Although a buyer can negotiate to use a portion of their agent’s commission as a credit towards their down payment, most don’t know they can and few ever do.

But let’s look a bit closer at the selling price of the house. When Jane and her agent established the asking price of the house, they included the $24,000 in agent fees as part of that price. They both knew that of the $400,000 price, Jane would put $376,000 in her pocket and that the agents would put $24,000 in theirs.

At closing, the buyer will bring $400,000 to the table. The seller will take home $376,000 and the agents will split the $24,000. The buyer has paid for the entire deal. To add insult to injury, if the buyer financed their purchase, they are going to pay interest on a portion of the $24,000 commission over the course of the loan, despite being told that they wouldn’t pay a dime.

The truth is that buyers, not sellers, pay the commission and never get a say in the matter about how much either realtor is worth! The contract defining payment terms is never seen or agreed upon by the buyer. Nonetheless, the buyer gets stuck with the terms.

A New Real Estate Model

That’s why Recadia has begun using the new flat fee, full service model of real estate while educating both buyers and sellers about fees and who actually pays them. By doing so, sellers can make more money, buyers can save more money, and everyone walks away knowing the truth about the fees while feeling good about the services received.

When it comes to real estate, the brokers at Recadia understand the true nature of real estate contracts and are willing to share that information with you. In fact, they hope you’ll share it with others because they feel it is important for everyone to understand who is really footing the bill.

To learn more about the flat fee, full service real estate model at Recadia, call us at (214) 281-8500. We’re ready to help you save thousands on the purchase of a home.