Any experience with a flat fee/discount real estate brokerage?

Has anyone used one? Any recommendations on one to use? We have a vacant lot in a platted neighborhood that we've decided to sell. The thought of paying 4% to 6% to real estate agents to sell a piece of dirt makes me crazy. I've written the ad copy and hired a drone operator to do a full aerial shoot. We're including house plans we had done that are specific to the lot with the sale so I found a company that turned the plans into a full color render. So, in other words, the listing agent needs to put a sign up and upload the listing. There certainly won't be any "showings". 

Given all of that, I'm looking for alternatives that will list the house for a minimal commission and still get us into the MLS.

I sold a condo using a flat fee broker. You are paying to get it exposure in the MLS, that is about it. With the growth of Zillow etc. you can probably get as much eye traffic. One thing about a flat fee, you need to make sure a selling agent has the incentive to show your property by offering selling agent commission. In the end you will save a few percent.

jgrewe said:

I sold a condo using a flat fee broker. You are paying to get it exposure in the MLS, that is about it. With the growth of Zillow etc. you can probably get as much eye traffic. One thing about a flat fee, you need to make sure a selling agent has the incentive to show your property by offering selling agent commission. In the end you will save a few percent.

The MLS listing is what I really want. And, since it's dirt, there is no showing that the selling agent has to do!

In reply to dyintorace :

An agent with a buyer won't show their buyer without the promise of their split of the normal commission. Going the Zillow route yourself will expose it to people far outside the local MLS coverage. The problem I usually see is buyers wonder if the asking price is in line with the market. People give Realtor listings the benefit of the doubt because "a professional" is involved. Most brokers will put the listing on Zillow and Realtor.com as part of the deal.

edit: clarify listing agent vs. selling agent

dyintorace said:

jgrewe said:

I sold a condo using a flat fee broker. You are paying to get it exposure in the MLS, that is about it. With the growth of Zillow etc. you can probably get as much eye traffic. One thing about a flat fee, you need to make sure a selling agent has the incentive to show your property by offering selling agent commission. In the end you will save a few percent.

The MLS listing is what I really want. And, since it's dirt, there is no showing that the selling agent has to do!

Put it onto Zillow yourself and put a sign in the ground.  For the sign (which you can buy at Home Depot) buy the optional information holder.  In that information holder, add the picture of the house you intended.  Put that intended house photo into your Zillow listing.  

What do you have to loose?  If you find that the Zillow listing isn't driving enough inquiry....then try a Realtor...but not until youve tried it solo.  

jgrewe said:

In reply to dyintorace :

An agent with a buyer won't show their buyer without the promise of their split of the normal commission. Going the Zillow route yourself will expose it to people far outside the local MLS coverage. The problem I usually see is buyers wonder if the asking price is in line with the market. People give Realtor listings the benefit of the doubt because "a professional" is involved. Most brokers will put the listing on Zillow and Realtor.com as part of the deal.

edit: clarify listing agent vs. selling agent

Yes, but the amount that is split still comes from the seller. 

Now if OP found an agent to due an exclusive listing with if they bring the buyer and agree to a lower commission because of they aren't splitting it, I have heard of that before. 

Someone who uses an agent will not be in this market.  It still needs to be in MLS and Zillow stuff though, as your customer does look at that stuff.  Signs on the lot and local ads in craigslist won't hurt.  A finders fee might work too, that way locals will tell all their friends.

After some prior experience with crappy realtors, we sold our house in 2020 by listing FSBO directly on Zillow.  Our buyer didn't have an agent, so we saved the ludicrous 6% comission that most sellers pay.  Selling FSBO meant that we had to mange the entire open house, showings, and sale process ourselves, but we had been through that rodeo several times before and the inconvenience was worth the savings.

Ditto what nderwater said.   Mrs Frog enjoys selling.  We use a title company for closings.  Pretty easy-peasy.

Occasionally we wheel and deal with real estate agents that want to bring buyers.  They usually respond favorably.

In reply to dyintorace :

please tell me more about the location and size? We are currenrtly looking. 

Thanks everyone. Given that this is just a piece of dirt, there aren't things like showings that need to happen. Really all I want from a real estate agent is to get the listing into the MLS. The real estate industry still has a stranglehold on listings, even with the availability of Zillow. And I am willing to pay a buyer's agent a commission if they bring me a buyer.

In reply to dyintorace :

That's true for some folks, but I've never bought a lot without walking it first. 

In reply to SV reX :

But a realtor is not necessary for that on an empty lot. 

In reply to mtn :

True

...and the last realtor who showed me a lot actually showed me the wrong lot!

Have you done a survey on the property ,

just to make sure the boundaries are where you think ?

If I was a decent sales person, I'd want to show up when my buyers did. 

I think you might be overestimating the importance of being listed on MLS, Zillow + a sign in the ground should bring you a buyer just as quickly. You might even want to skip Zillow too. I remember reading a story of a person who listed a house on Zillow, being inundated by an endless string of real estate agents posing as buyers, and then finally sticking a sign in the ground, and before they could finish hammering it in, got interest from a real potential buyer driving past.

In reply to GameboyRMH :

 I agree that the MLS has limited value. 
 

Most Realtors (more than 90%) aren't actually very good at selling vacant lots in subdivisions. Unless they are working for the developer (and selling many lots in the same neighborhood). They don't have a list of buyers looking for subdivision lots, and they don't know how to sell them. 
 

If you are gonna list it, you want a Realtor that specializes in land sales.  Even that is a question mark on a residual building lot in a completed subdivision.

I'd be tempted to throw it up on craigslist, FBM, etc. as well before going too far down the traditional real estate rabbit hole.  Buying dirt isn't normal, so the normal routes are less applicable IMO.  

I'd mail something to everyone living within a mile and ask if they know somebody looking for land. 

..or walk around and ask them. 

Talk to a local builder as they're usually looking for land. I've seen them advertise a "to be built" house on Zillow that is just a plot at the moment. Most times they put up a sign on the property as well. It's easier to finance a house vs land so most people skip the land listings out of fear of the unknown. 

In reply to OHSCrifle and Steve_Jones:

That's funny- I've spoken to dyintorace offline, and suggested both of those things!

He's there this weekend canvassing the neighborhood. Hopefully it goes well...