A few months back Ann talked about different business models and the different levels of service provided to the consumer. Today I would like to talk about the mere posting business model and how they make their money.
The mere posting business model is when a seller wants to try to sell their house themselves but want their property listed on realtor.ca. The brokerage lists the property on their local MLS® and the listing is uploaded to realtor.ca. The seller is happy because their house is on the MLS®. What they don’t realize is that although their house is listed on realtor.ca it may not be listed on their local MLS®. Local REALTORS® who may have a buyer are likely not aware the house is available for sale.
The mere posting brokerages make their money up front. It doesn’t matter if the house doesn’t sell because they have already been paid. What the home seller has to ask is how many of these mere posting listings actually sell. You should also ask from the houses that did sell, how many were sold through a buyer’s REALTOR® whom the seller had to pay over and above the flat fee.
I’m not saying mere posting listings don’t sell. I’m saying the home owners that don’t get their house sold have incurred an extra cost in the overall process to get their home sold and move on with their housing dreams.
I think it’s great the consumers have different choices when it comes to selling their home. What I don’t like is the consumer paying for something that doesn’t work every time, and not being fully aware of the possible costs.
When you buy a TV and it doesn’t work you can return it and get your money back. When you choose to list your house with a mere posting brokerage and your house doesn’t sell, the money you paid up front is gone forever.
When you hire a full service brokerage to sell your house you DO NOT pay them until they get the house SOLD!
Be sure to do your due diligence before you put your home on the market. Make sure you know what your expenses are going to be so you can make an informed decision.