Pre-internet age, real estate agents provided more value to buyers and sellers than they do today. In those days, agents were responsible for helping buyers locate properties and for helping match sellers with those buyers. Now that nearly almost every property listing is online, the value agents previously provided has diminished.
Agents still provide a valuable service as advisors. Agents help advise their clients through the process and are able to utilize their experience and knowledge to help relieve the stress and anxiety involved in buying or selling a home.
The question then is "what is fair pay for an agent in this day and age?"
It seems like the concept of paying an agent a commission based upon the price of the home is an antiquated one. If the sole role and value being provided is advice, as opposed to helping buyers and sellers find one another, then should the amount of an agent's pay really vary based upon the price of the home? The advice from an agent about buying or selling a home does not change based upon the price of the home. Agents utilize the same knowledge and experience regardless of price. Also the time involved does not typically vary from one price point to the next.
At Flat Fee we believe that it is time to abolish the 6% percent commission based model and for the real estate industry to adopt a fairer one. It may not be our model of charging a flat fee of $3,500 but it should be fairer than it is today.