Most realtors, title companies, financing companies, inspectors, appraisers, and other 3rd parties are used to dealing with listing agents when the property is on MLS whether the property is limited or full service. So our realtors are dealing with calls or e-mails on amendments, contingencies, forms, scheduling and communications from 3rd parties whether the seller (or PhD) wants this or not.
Importantly, it is both in the seller’s interest and ours that the transaction goes smoothly through closing. Our involvement helps ensure that.
Keep in mind a few things when evaluating the fairness of this fee:
First, we only charge this if the property goes to closing. In other words, if we assist putting a deal together that is, for example, contingent upon a home sale or a variety of other reasons and the property doesn’t end up closing no fee is charged.
Second, compare this fee to the alternative. First, most other real estate brokers charge a listing fee and a substantial administrative fee that together is thousands of dollars. Our total fee including getting the property on MLS, coordinating the transaction including use of our earnest money account is less than $1,000.
Third, the coordination of a typical real estate transaction excluding showings is often very time-consuming.
Fourth if a seller (or even an unpaid seller friend, cousin, brother-in-law, etc.) with little real estate experience tries to handle all the issues that can and do come up as they work through the process and steps get missed, forms are improperly completed, deadlines are not met, etc. then this will eventually reflect poorly on PhD Homes & Real Estate and result in the likelihood of other agents NOT showing PhD properties which isn’t in the interest of us or our clients.
Finally, if a seller has another realtor that can help them with the transaction our suggestion would be to consider having them list the property. Often the issue then becomes the national brokerage company will require a full service commission which will be much more expensive.
In conclusion, the clear advantage in working with PhD on limited service listings is a low entrance fee and a less than market closing fee with full service only paid at closing which can be negotiated as part of the purchase price.