Second Mortgage

You can be your own broker! How about that?

The flat fee mortgage is an attempt to remove agency problems, reduce the tension between broker and borrower and eliminate the risk of a borrower overpaying for their interest rate and closing costs.

Moreover, if you are about to list your home for sale, consider this question: Can you afford to give up a percentage of your selling price — perhaps as much as 7% — to find potential buyers for your property? You’d probably rather not if there’s a viable alternative. Some homeowners have turned to real-estate brokerage firms that charge a flat fee to list and sell a home, while others have taken matters into their own hands in what are known as for-sale-by-owner or FSBO transactions.

Selling a home is not a transaction to approach casually, and making the right choices in how to market and sell your home can have significant financial costs and benefits. Some transactions go very smoothly, while others are difficult. The more informed you are, the fewer surprises you are likely to encounter when you sell your home.

What should you consider when evaluating a flat-fee real-estate service?

According to Brad Boyd, an attorney, and who is also a real-estate broker and president of Full House Realty LLC, a flat-fee real-estate-services firm in Minneapolis. Although many sellers find comfort in having a listing agent guide them through the sale of their home, answer phone calls and other inquiries and negotiate the transaction, some owners would prefer to manage portions or all of the transaction themselves, especially if it can save them thousands of dollars. A flat-fee real-estate agent might be a good choice for these sellers. They usually can help list and market the house and may even suggest legal and closing services that are available at a flat fee rather than at a percentage of the selling price. A flat-fee agent also can help FSBO sellers who aren’t comfortable handling all aspects of a sale.

You should evaluate what services you’ll receive for your money. The companies that offer a variety of packages or customize services to your needs may be your best choice, as they give you more flexibility.

You also should consider how the listing information is obtained — is the burden on you to photograph or measure your property and determine your home’s selling price?

Also pay attention to what types of marketing services the agent provides. Must you post signs and advertise your home? If the agent provides signs and marketing brochures, are they professionally designed and attractive? Will the service include a listing on its web site? Research the tools you think are most effective for targeting buyers, and ask whether the flat-fee can accommodate your choices.

After you know exactly what they offer, you can make appropriate decisions in choosing the right firm. Take time to evaluate how these firms represent themselves. Review their web sites, marketing tools and how they describe their services — make sure they explain in detail what they provide and not just what services cost.