Flat-fee commissions helping sellers through market

Assist-2-Sell Knoxville
Flat-fee commissions helping sellers through market
by Mitch Moore, Special Publications Correspondent
Friday, May 23, 2008

Knoxville — All the signs indicate that it’s a buyer’s market right now, which may be the first step back on the path to real estate recovery in East Tennessee, says Paul Bass, owner/broker of Assist-2-Sell Knoxville.

“We’ve had more buyers calling in lately, which tells us that things are picking up. Today’s market, in my opinion, is starting to turn, mainly because sellers are becoming more realistic in their pricing,” Bass says, noting that many sellers have had to realign their price points with property values similar to those in late 2006 and early 2007.

In addition to being flexible in pricing, he says sellers should make sure their homes are in tip-top shape in order to compete for attention.

“It’s got to be the best-looking house it can be, in the best condition possible, and the seller needs to be motivated,” Bass adds. “The buyers are there, and we’re doing everything we possibly can to help the sellers.”

Assist-2-Sell’s flat commission rates have been beneficial to sellers who have had to bring their asking prices more into line with current market conditions, he notes. Bass emphasizes that the commission is only $2,995 on homes that sell for up to $200,000. Fees are paid at closing, with no upfront costs required of the seller.

The potential savings to sellers can be substantial.

For example, a 6-percent commission on a home that sells for $200,000 could be as much as $12,000, although Bass acknowledges that commissions are negotiable and not set by law.

Assist-2-Sell’s flat fee for a $200,000 home sale would be its standard $2,995. Fees vary for homes over $200,000.

“With Assist-2-Sell, sellers get to work with a full-service real estate company without having to absorb the traditional commission costs,” Bass says. “It’s less painful to drop prices when the commission is lower.”

The company’s full-service approach means that agents do everything traditional real estate agents do, including advertising, showing homes, writing and presenting offers, setting up inspections and appraisals, and representing parties at closing.

“We don’t do less. We just work for less,” Bass says.

Bass and his team have spent much of the past seven years trying to educate the public about the Assist-2-Sell concept. For example, they often have to dispel the myth that cooperating agents from other companies might also make lower commissions when dealing with Assist-2-Sell. The fact is that agents from other companies still receive their typical negotiated fees.

“More and more people are understanding that Assist-2-Sell is the only way to do business around here. Assist-2-Sell is the fastest-growing real estate company in America today,” Bass says. Last year, the agency ranked in the top six of Assist-2-Sell’s 600-plus locations throughout the United States and Canada.

Assist-2-Sell Knoxville has continued to expand since Bass’ father, Marty, opened the office in spring 2001. In 2007, the agency moved into larger offices at 11320 Kingston Pike, Suite 102, and has continued to add new agents over the years.

In fact, Bass, who recently obtained his broker’s license, has brought his daughter, Jessica, onto the sales team, along with new agent Don Bales.

A CLOSER LOOK

Comments

[Lafayette Colorado homes for sale]

As a seller we must know the needs of our client we can't just based the price on what we need or what we want because we are responsible when it comes to providing good quality of homes.

-Audrey

[san diego home equity loan]

Hi,

Not sure if you are still searching for flat-fee real estate agents, but I am one. I started my company as a pure for sale by owner site and have now moved on to flat-fee. Clients pay about $400 up front. If another agent procures the buyer, they pay a co-broke that we set up at the time of listing (about 2-3%, or a flat fee). But about half the time they end up selling by owner to someone who found the home on the MLS. I’d be happy to talk about my business if you still need info.