Flat-fee Versus Commission-based Real Estate Business Models

On April 25, 2013, Help-U-Sell Bay Beach Realty broker/owner Dan Desmond and Scott Einbinder, a veteran real estate salesperson and consultant, in Toms River, N.J., will debate which real estate business model is superior: flat-fee or commission-based. Proceeds from the highly anticipated event will benefit the local Habitat for Humanity chapter.

Dan Desmond, Help-U-Sell Bay Beach Realty
Dan Desmond of Help-U-Sell Bay Beach Realty will debate the merits of the flat-fee business model on April 25, 2013.

While Desmond will be speaking on his own behalf and not as a representative of Help-U-Sell Real Estate’s corporate office, we are looking forward to cheering him on in about two weeks’ time.

Since we began operating in 1976, Help-U-Sell Real Estate has practiced the flat-fee (or set-fee) business model. Our founder, Don Taylor, thought the idea that consumers paid high commissions, based on the sale price of a home and not on the actual cost of marketing the home, could be improved upon.

Our brokers, all members of the National Association of REALTORS, offer the same full service as commission-based brokers, but charge a flat fee instead of a variable percentage. The flat fee is always at a savings for our sellers. However, we are not discount brokers. Our brokers determine their flat fee based on solid business practices (the market conditions, their profit margin and the cost to perform services) and not based on what the broker next door is charging.

Last year, our offices saved sellers $12.5 million in commission fees, when compared to a 6% commission. To us, a flat fee just makes sense for everyone: our sellers, our brokers and our brokers’ agents.

If you would like more information about how Help-U-Sell Real Estate’s set-fee business model works, visit our Franchise Opportunity Center website or contact us.

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