Selling your property can make a significant difference to your financial stability. However, one of the concerns many sellers have is the dent that a realtor’s fee could put in their potential profits. It’s important to gain as much information about your options here as possible. This allows you to make informed decisions on how to move forward.
We’re going to take a closer look at what the average realtor fee in Florida is. What contributes to it, what affects differences between agents, and what other options do you have?
This isn’t necessarily a simple matter, but the steps you take to utilize this tool effectively can make a difference. So, we’re going to take a look at the various aspects involved with how to get an MLS listing without a realtor and how to use it properly.
The Simple Answer
At present, the average realtor fee in Florida is about 5.4% of the final sales price. This combines the average listing commission and the average buyer’s agent’s commission. The former is the percentage for the agent helping to sell to property charges, while the latter refers to the agent that helps a consumer purchase the home. Some sellers may be confused about the idea that the buyer’s agent’s fee is included in the average realtor fee, as they’re representing the buyer rather than the seller. However, it is the real estate industry’s accepted practice that the buyer’s agent fee is paid by the seller in the majority of circumstances.
Realtor fees in Florida can certainly fluctuate. Usually, anywhere between 5% and 6% will be considered relatively normal for the state. While this may seem like a small amount, based on the median value of owner-occupied housing units in Florida — $248,700 — it works out as $12,435 at the lowest end. It’s not an insignificant amount of your overall return.
What Can Affect Differences?
While Florida’s average realtor fee is around 5% to 6%, this doesn’t mean you can necessarily expect the same fee range for every realtor in the area. There are various elements that can contribute to what a real estate professional decides to quote potential sellers. It’s important to bear these in mind before making any decisions. The elements that can impact your realtor fee include:
Expertise
In some instances, a difference in your realtor fees will be reflective of your agent’s expertise. At its most basic, this will be the result of how experienced they are in selling properties. Newer agents might charge lower commissions because they have less experience in handling the presentation of a property or negotiations with buyers. However, another element that can affect the realtor percentage is whether they have expertise in selling niche types of property. If you have an unusual home that agents struggle to sell, specialists can charge a higher percentage as a result of their knowledge and contacts.
Services
Not all realtors offer the same types of selling experience to property owners. Much like any other industry, many real estate professionals provide clients with a selection of tools depending on their needs. There are the basics, such as arranging buyer tours and open houses. But it is also increasingly common for some agents to offer virtual tours, taking drone video of the property, and arranging lockboxes for buyers to view the property independently. The number and complexity of services a realtor may offer can affect the fee.
Local Competition
Florida certainly has no shortage of realtors. Yet, the amount of inventory available isn’t as high as it was even a few years ago. This means that it is often in a realtor’s best interest to attract sellers to their agency. This means that you may find some realtors offering a lower percentage of commission in order to get ahead of the competition. In most cases, though, realtors will avoid taking lower fees to entice sellers.
Closing Costs
Closing costs represent a significant amount of your outlay as a seller. In fact, realtor fees are often considered a form of closing cost and are expected to be paid at the same time. Other closing costs can include title insurance, local taxes, and filing fees. Closing fees can impact your realtor fee percentage because your agent may arrange to pay some or all of these. It’s not common, but an agent can offer this in order to attract sellers. Therefore, while a realtor may charge 6% or higher as their fee, if they pay your closing costs you may be better off than simply going with a realtor that charges 5%.
What are the Alternatives to Paying a Realtor Fee?
It is certainly tempting to find ways to cut down costs when you’re selling your home. After all, when a single percentage point can result in an extra few thousand dollars in fees, the realtor starts to become an expensive commodity. So, it’s certainly worth looking for alternative options available to you.
Perhaps the most common option here is by taking a more independent approach. In some instances, you may find it practical to list the home yourself on various websites or take care of outreach through your personal contacts. However, this can certainly take a lot of leg-work and can be a relatively stressful process.
An increasing number of people are bridging the gap between using a realtor and selling independently by utilizing a flat fee multiple listing service (MLS) brokerage. In exchange for a comparatively small up-front fee, the brokerage will place all the significant details about your property on the regional MLS. This means that all local real estate agents will have access to your information and can arrange for their buyers to visit. Many flat fee MLS brokers will also automatically place your property details on key real estate websites so that buyers can contact you directly.
The amount you pay MLS brokers can depend on the level of service you require. For instance, Flat Fee MLS Realty offers 3 plans, each with a range of elements sellers can utilize. The lowest price Silver package provides the basics, such as listing on the MLS and websites, space for 25 photographs of the property, and open house scheduling. While the higher cost Platinum package provides these elements alongside comparative market analysis to help with pricing and access to a lockbox, among others. It’s important to ensure your needs dictate your investment.
Alongside the MLS broker fee, you may also have to pay a commission if an agent uses the listing to direct a buyer to your home, leading to a sale. However, you are only having to pay the buyer’s agent fee, rather than the combined listing and buyer agent commission that makes up the realtor fee. Not to mention that you can dictate the maximum percentage you’re willing to pay buyer’s agents on the MLS. This means that not only can you save significantly on the overall realtor fee, but also you gain greater control over the sale of your property.
Collaborate with a Broker
With the average realtor fee in Florida sitting at around 5.4%, this can represent a significant amount of your return on investment after a sale. There are variances between agents though, and these can be influenced by a range of factors, including the range of services an agent provides and the potential to handle other closing fees. Nevertheless, it’s important to remember that realtors aren’t your only option. In some instances, utilizing an MLS broker can see you play a more active role in your sale and save on commission costs.
Collaborate with a Broker
When you’re navigating how to list a property on MLS without realtor involvement, it’s usually advisable to work with a broker instead. This isn’t just for the simple fact that they’ll have access to create a listing on the MLS. Brokers also tend to have a more significant level of experience and education than other professionals in the field. Part of their training will include deep dives into the more nuanced aspects of property law that you may not have a sufficient understanding of. They will also be skilled in interpreting and assessing the real estate markets. Not to mention they tend to have positive relationships with lawyers, closing agents, insurers, and screening companies that you will need to interact with.
Some brokers, like Flat Fee MLS Realty, recognize that there is significant potential to give various levels of support to inexperienced owner sellers in this process. To achieve this in a cost effective way, there is a growing number of MLS brokers offering services for a flat fee.
How Does Flat Fee MLS Work?
So, what are flat fee MLS listings? At the most basic level, this is where a brokerage creates the MLS listing and provides associate services to you for a single fee. This fee tends to range between the $100 and $500 mark. The best brokerages don’t charge you anything on top of this. However, many offer a range of packages depending on the level of additional resources and support the seller requires on top of creating the listing itself.
Reach out to us at (813) 642-6030 or email florida@flatfeemlsrealty.com if you have any questions about listing your home on the MLS.
