The number of “discount” limited service listings has increased greatly. A seller lists his or property with a real estate agent who does one thing only: enters the data in the multiple listing service. This gets more exposure for the property and the owner deals directlyu with other agents wanting to show the house. Most also offer a sign and a lock-box for an extra fee. The charge is about $500 to the listing real estate agent up front (but 2.5% is charged by the selling real estate agent at closing). No open houses are conducted and there is no assistance in negotiating the sale contract.
In the last month I have had several clients do this. It seems to be internet-savvy clients under age 35 or so who really like this way of selling.
The only problems are:
1. The listing agents do not take calls and that seems to frustrate other agents trying to show the property;
2. There is no “buffer” when an offer comes in (because the agent doesn’t help with the offer) and negotiating the contract is harder;
3. I had one client who signed up with a southside discount broker who did not list the home in the listing services (MAP and MLSNI) that everyone uses here and no one saw the house. He cancelled the listing when he found out.
This is part of the “unbundling” of real estate services that will continue to unfold.