Do I lose my right to Sell by Owner if I list through a flat fee broker?

The short answer is absolutely not. Simply put, you’re paying that broker to gain access to your local  MLS as a means to get the same exact advertisement as if your property was listed with a full cost  traditional broker / realtor. The type of contract entered into with a flat fee broker is known as an  Exclusive Agency Contract, otherwise known as a Limited Service Listing Agreement. An exclusive agency  contract allows for the seller to sell their property on their own without having to pay the listing broker  a commission and can be cancelled at any time without any type of monetary consequence. Compare  this to an Exclusive Right to Sell Contract that is used by traditional brokers and real estate agents that  states a commission must be paid to the listing broker regardless of who sells the property.  Furthermore, the contract locks you in for a specific amount of time, usually one year.

Let’s say you opted to use a Traditional Broker instead of a Limited Service Broker like Reozom. You sign  a six month exclusive Right to Sell Contract with the broker stating that a commission must be paid to  that broker regardless of how the buyer was obtained. This means that if a buyer calls you off an  advertisement you placed on Craigslist wanting to purchase your property you would still be obligated  to pay your listing broker the agreed upon commission which is typically three percent of the sales price.  Now use the same scenario using Reozom; you pay no commission at all since there was no buyer’s  agent involved in the transaction.

 

Here are the numbers based off a $250,000 sales price-  

Sales Broker / Agent – $7,500 (3%)  

Buyer’s Broker / Agent – $7,500 (3%)  

Reozom- $395  Savings of $7,500 – $15,000 depending on whether the buyer has a real estate agent or not.  

 

As you can see by the numbers, the return on investment from listing with a flat fee broker like Reozom  is a no brainer.  Be very careful before signing any exclusive right to sell agreement, one mistake could easily end up  costing you tens of thousands of dollars in Realtor commissions.

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