Should I Use a Flat Rate Realtor in Dallas?

Disclaimer: This post is meant to be used for educational purposes. Links and mentions of flat rate Realtors in Dallas do not constitute an endorsement. Realtor service and product details can change — please visit a provider’s website for the most current information on rate packages, fees, service areas, and more. HomeLight always recommends doing your own research to determine which selling option is best for your situation.

Over the years, Dallas has become a real estate hotspot, but like many other cities around the country, macroeconomic trends have cooled the competition between buyers. The shifting market has fueled a sense of anxiety among sellers about choosing the best approach to marketing their home. One option on the table is using a flat rate Realtor for greater certainty about how much commission you’ll pay. We’ll discuss the pros, cons, and costs associated with flat rate Realtors in Dallas.

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What is a flat rate Realtor in Dallas?

A flat rate Realtor, also known as a flat fee or discount Realtor, is a type of real estate agent who charges a fixed fee for their services, regardless of the final sale price of the property. Traditional real estate agents typically charge a commission based on a percentage of the sale price, which can average about 3% of the sale price paid to each agent. A seller can expect to pay 5% to 6% of their home’s sale value in agent fees.

In contrast, a flat rate Realtor charges a set fee for their services, regardless of the price of the property. This fee can vary, and agents might even adjust the fee to appeal to a particular seller.

For example, the median U.S. home sales price was $392,000 in 2022. Selling with a traditional real estate agent, at 6%, the fees would average $23,520, which would typically be split between the listing agent and the buyer’s agent, both receiving $11,760. If you’re trying to walk away with the most money, it might be hard to think of deducting that from your sale proceeds.

Flat fee agents in the Dallas area will provide home-selling services for as little as $100 to well over $1,200. The wide range is due to the different tiers of services offered. At the low end, you’ll just get your property listed on the MLS, while higher tiers will offer more robust marketing services.

Taking the example above, paying $1,200 to the listing agent instead of $11,760 would put your total commission at $12,960 as opposed to $23,520. A lower number may be appealing, but what are you getting for that cost savings? What are the pros and cons of using a flat rate Realtor in Dallas?

In this post, we’ll go over the top things to consider when weighing whether the commission cost savings you’d get with a flat rate Realtor is worth it.

Benefits of using a flat rate Realtor in Dallas

The following are a few of the top reasons why some sellers opt for a flat rate Realtor:

• Cost savings on the seller’s commission
• A transparent pricing structure
• Ability to customize services package
• Direct access to the MLS
• Allows you to budget for the fee

Drawbacks of using a flat rate Realtor in Dallas

If your flat rate Realtor has less experience or offers only limited services, some of the drawbacks you might face include:

• Your home may sell for less money
• Fewer buyers may see your home
• You may receive less personalized attention
• Your agent may be less motivated to work toward a higher sale price
• Liability risk if required disclosures or other documents aren’t handled properly
• May have to spend extra on services that are not covered, such as photography
• Potential for a frustrating or ineffective home-selling experience

Additional factors to consider when using a flat rate Realtor

As you weigh the benefits and drawbacks of using a flat rate Realtor, here are some additional factors to consider:

You’ll still pay the buyer’s agent commission

Real estate commissions can be confusing, and sellers might misinterpret the term “flat rate” to mean that all they’ll pay is the agreed-upon rate with their Dallas agent. The important point to remember is that sellers are also usually responsible for paying the buyer’s agent commission, which adds another 2% to 3% of the final sale price to the flat rate fee. While knowing your agent’s fee upfront is helpful for budgeting, you probably won’t know in advance what the buyer’s agent commission will be.

Know what you’re getting for your money

The other crucial thing to know about flat rate Realtors is that they might offer significantly less services than what you’d expect with a traditional agent. Before selecting a flat rate Realtor, read the fine print to find out what the fee covers and what it doesn’t.

Motivation matters to price and proceeds

According to Jeremy Larsen, who works with over 65% more single-family homes than the average Dallas agent, sellers may encounter flat fee agents who aren’t as motivated to go the extra mile for their clients because they’ll earn the same regardless of how much the house sells for. This might result in lackluster property photos, unexciting listing descriptions, reduced showings, and a lack of response to buyers’ inquiries in a timely fashion.

Local market conditions can tilt the scale

When selling what is likely your largest financial asset, consider what level of professional expertise you want in your corner, especially in a shifting housing market.

“It’s simple supply and demand economics where you get what you pay for,” said Larsen. “A flat rate broker might not subscribe to one of the national appointment scheduling platforms, and won’t take the extra step to reach out to other agents, which could result in reduced showings. They typically have so many properties that they might not have time to go to the property, so they won’t be able to answer a lot of questions about the house.”

Larsen also said that he’s seen deals with flat rate agents go poorly because they don’t always respond to property inquiries or offers in a timely manner.

“I’ve had buyers walk about from houses because they couldn’t get information,” says Larsen.

Then there are instances where Larsen witnessed sellers saving money with a flat rate Realtor at the buyer’s agent’s expense. In one case, Larsen served as a buyer’s agent and ended up fulfilling some of the seller’s agent’s tasks to help get the deal across the finish line despite the flat rate brokerage not fulfilling their end of the bargain.

Later in this post, we’ll review your selling options and alternatives, including what you can expect from a full-commission, full-service Realtor.

What’s the difference between flat rate Realtor and flat fee MLS?

A flat rate Realtor is not the same as a flat fee MLS service. Companies like ISoldMyHouse.com or FSBO.com are examples of flat fee MLS services that provide a way for FSBO (for sale by owner) sellers to get their properties listed on MLS websites and pay for extra services if desired.

Generally, only licensed real estate agents can access and post listings on the local MLS. These flat fee MLS services grant FSBO sellers listing power on the MLS, while a flat fee Realtor is more comparable to a traditional agent though the compensation structure is different, which can also result in a different level of service.

How do I find a local flat rate Realtor in Dallas?

Here’s a list of four leading flat rate service companies that serve Dallas home sellers.

Solvent Realty Group

Website: Solventrealty.com
Starting flat rate: $1,495

The introductory package includes an in-home consultation, a full-time assigned agent, and professional photography. The premium tier additionally offers three open houses, a virtual tour, and color graphics for marketing materials for $2,495.

Homevita

Website: Homevita.co
Starting flat rate: $3,995

Service benefits include an in-home consultation, a dedicated agent, an in-depth market analysis, pricing consultation, staging advice, professional photography session, contract negotiations, inspection process advice, and closing assistance.

VIP Realty

Website: Viprealtyinfo.com/Flat-Fee-Listing-Options.php
Starting flat rate: $3,500

Introductory services include professional photography, market evaluation and price consultation, negotiation assistance, and contract and escrow assistance.

Competitive Edge Realty

Website: Nitinguptadfw.com
Starting flat rate: Call for current rates

This locally-owned company does not post its fee structure but expresses a commitment to providing clients with a stress-free experience and guiding them at every step of the home-selling process.

Should I use a flat rate Realtor in Dallas?

You’ll have to weigh your own unique selling circumstances to decide if a flat rate Realtor versus a traditional agent is right for you.

For instance, if homes in your neighborhood are selling quickly and for above listing price, you might be able to save money by going the flat rate route. If the market has shifted in favor of buyers, then you may want a traditional agent with the most experience and who will put in the highest degree of effort to sell your home. Additionally, you may want to hire a traditional agent if you feel you want to take a more hands-off approach to the process.

Ultimately, the decision to use a flat rate Realtor versus a traditional agent will depend on your specific needs and preferences. Consider what level of support you require, the local market conditions, and your budget to determine which option is the best fit for you. It may also be helpful to speak with both types of agents to get a sense of their experience, services, and fees.

Before agreeing to sell with a flat rate agent:

• Research agent reviews
• Interview at least three agents
• Check the agent’s relevant experience
• Scrutinize the quality of the initial phone call or consultation

Will a flat rate Realtor in Dallas save me money?

A flat rate Realtor in Dallas can potentially save you money compared to a traditional real estate agent, but the amount you save will depend on several factors, including the specific flat fee charged by the Realtor and the sale price of your home.

It’s important to keep in mind that flat rate Realtors may not offer the same level of support and services as traditional agents. For example, a flat rate Realtor may not provide as much marketing or staging assistance, or may not handle negotiations on your behalf. This can require more effort on your part to sell your home, which may offset any potential savings from the lower fee, especially if it results in a lower sale price.

Additionally, some flat rate Realtors may charge additional fees for certain services, such as professional photography or advertising, which can increase the overall cost of selling your home.

Next, we’ll talk about some other alternatives to a flat fee agent.

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What are some alternatives to flat rate Realtors in Dallas?

Discount or low-commission agent: Discount real estate brokers offer reduced commission rates, typically around 1%-2% of the sale price. While this is still a commission-based fee, it can be significantly lower than the traditional rate charged by full-service agents.

Sell your home FSBO: FSBO involves selling your home without the assistance of a real estate agent. This can potentially save you money on commissions and fees, but it requires more effort and knowledge on your part to market and sell your home effectively.

Sell your home for cash: House-buying companies like iBuyers or real estate investors purchase properties directly from homeowners, often for cash and without the need for a real estate agent. This can be a fast and convenient option with lower expenses, but the sales often result in sellers parting with their properties at below-market-value prices.

Hire a full-service, full-commission agent: The higher fee typically charged by traditional agents typically comes with more comprehensive services, such as marketing, staging, negotiating, and managing the transaction process.

Data supports that sellers can get exceptional results with a top-producing, full-commission agent who has a proven sale-to-list price ratio, which tells how much, on average, an agent gets for the homes they sell compared to the asking price. Our data shows that the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent. Especially in the current market, it can pay to go with a Dallas real estate agent that has proven experience.

What can I expect from a full-commission, full-service Realtor?

Regardless of the selling approach you ultimately decide to pursue, it’s crucial to fully vet any agent or company you hire. Because traditional agents charge higher fees, you should examine their track record to make sure that the added investment will pay off during the selling process. According to Larsen, sellers can expect traditional agents to devote more time and use a prepared strategy to sell their clients’ homes.

“With a full service agent, you get their time and experience,” says Larsen. “Being able to reach out and touch someone is important when things need to get done in a timely manner.”

Here is a list of services sellers can expect from a full-commission real estate agent:

• Use market data to set the best selling price for your home
• Write a listing description that appeals to buyers and their agents
• Take professional photos of your property
• Provide virtual tours, drone footage, or other videos of your home
• Market and advertise your home, including on social media
• Make the state and federal required disclosures
• Coordinate showings and open houses
• Review offers and make counteroffers
• Negotiate the sales price
• Negotiate the terms of your contract
• Calculate your closing costs and your net proceeds
• Navigate any issues that may come up with the appraisal or inspection
• Help you understand any local real estate transfer taxes
• Get all the required documentation together

Partner with a top-performing agent when you need results

Current market conditions will likely be a major factor in deciding whether or not you use a flat rate Realtor. Larsen says he’s not seeing many sellers use flat rate brokers in the Dallas market right now though he has seen some agents offer discounted commissions.

If you’re leaning toward the traditional agent route but are concerned about paying higher fees, Larsen recommends negotiating a reduced rate with a traditional agent as an alternative to hiring a flat rate agent.

If you don’t mind taking on some of the selling responsibilities and you have a high degree of confidence that your listing will get several competitive offers soon after hitting the market, a flat rate broker may make sense. However, if you expect to need more professional support, opting for a traditional agent might be the safer bet.

If you want the best return on your home investment, not just any agent will do. Start doing your homework on finding the right agent for your selling needs by using HomeLight’s Agent Match tool.

HomeLight can connect you with an experienced top agent in the Dallas market. Our free Agent Match platform analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs and selling situation.

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