The real estate world is changing. More and more companies are moving away from the traditional real estate model of 6% commission fees. While flat-fee realtors have been around for years, as new technology emerges, more are popping up to provide an innovative, and less expensive way to buy and sell a home.
For example, Clever uses new technology to pass on savings to their clients. By working with a Clever Partner Agent, you can have a full-service selling experience and save up to 50% on commissions.
> Get in touch with Clever to learn more about how you can save thousands on commissions.
To help you decide whether to work with a flat-fee realtor or full-price agent, here's everything you need to know about flat-fee realtors in Michigan.
What are flat-fee realtors?
Unlike your traditional real estate agent, flat-fee realtors will only ask for a fixed, flat rate or a commission lower than the Michigan average of 6%. You'll find a wide range of rates when perusing flat-fee realtors, however, a typical fee for flat-fee realtors usually falls around $3,000 or a 1% commission rate.
Flat-fee realtors are happy to work for a lower commission because it allows them to work with a higher volume of clients and build their reputation faster. Many receive seller and buyer leads from their company or a referral network, helping to minimize the cost and time it takes to find new clients. Because flat-fee realtors can save money on client acquisition, the savings get passed along to you.
Plus they're better able to tailor the selling process to your needs and your budget. So with flat-fee realtors, you'll find a wide range of costs and service packages all aiming to serve the seller's individual situation.
Some flat-fee companies only list your home on the MLS, which allows experienced sellers to save money and get exposure for their home.
If you do want the full range of services that a traditional real estate agent provides, you can choose to work with a full-service, flat-fee realtor who offers the same services and support as a traditional agent but at a fraction of the cost.
For instance, if your home sells for $200,000 with the standard 6% commission fee, you'll be paying $12,000 in realtor fees, $6,000 to your agent and $6,000 to the buyer's.
But with a flat-fee realtor who charges only $3,000, on that same house you'll only be paying $9,000 in commission fees, saving you $3,000.
Flat-Fee MLS Options in Michigan
How Kermath Realty Works
Kermath Realty provides sellers with four different service packages to list their home on the MLS. With their most basic option, for $299, they'll list your home on the MLS for six months, allow you to post five pictures and provide you with a yard sign and flyer. Aside from that, you're basically on your own in terms of open houses, negotiations, contracts, and closing.
They do offer the additional packages, with the Full Service Premium package ($999) that provides more agent support including a CMA, contract help, and negotiation assistance.
- You'll save a ton on commission with Kermath Realty's low, flat-fee listing packages — the lowest price starts at $299 and goes up to $999.
- You have a variety of options to choose from based on your listing needs and seller experience.
- You won't receive the same range of services and support you would with a traditional real estate agent even if you choose the Full Service Premium option. For instance, they won't schedule or attend on-demand showings of your house.
- They don't provide any support with writing your listing description, staging your home, or arranging for professional photos.
Modern Way Realty
How Modern Way Realty Works
With Modern Way Realty, you can choose between two different service options: Basic for $295 and Full Service for $595.
The Basic option will list your home on the MLS for 12 months, allowing you up to 25 photos plus they'll provide you with some needed documents and access to ShowingTime, an open house service where you can schedule your own open houses.
The Full Service package offers a few more services including a yard sign, flyers, virtual tour of your home, and agent support including help with buyer offers, negotiations, paperwork, and closing.
- Modern Way Realty's low flat fee is the biggest perk — you're able to list on the MLS within 24 hours at a low cost.
- You have two MLS service packages to choose from so you can decide how much agent support you'd like.
- You'll pay extra fees for additional services like a CMA, where they'll charge you to send out a report of their analysis.
- You'll have a limited range of services and minimal agent support. For instance, you won't have access to a lock box, professional photographer, or staging assistance, and you'll be responsible for conducting your own open houses.
Flat-Fee Realtor Options in Michigan
How Redefy Works
With Redefy you'll pay an upfront, non-refundable $500 retainer and an additional flat-fee of $3,000 at closing for a total of $3,500. You can also pay $2,500 all upfront. For homes that sell over one million dollars, Redefy charges a 1% commission fee.
For that flat fee you'll be connected with one of Redefy's agents who will come out for an in-home consultation and to do a comparative market analysis (CMA) to help determine the price of your home. You'll also receive professional photos, a lock box, and yard signage.
From there, Redefy will list your home on the MLS as well as other listing sites like Zillow and Trulia. They'll help manage buyer offers, negotiations, contracts, and stay with you through closing, helping you navigate the entire selling process.
- For the services Redefy provides, you pay a low and fair price of $3,500, saving you a bundle on commission fees.
- You're partnered with a full-service, in-house Redefy agent who will list your home, help with negotiations, paperwork, and closing.
- While currently only available in Florida and Texas Redefy offers additional low-cost service packages with Redefy DIY.
- Redefy has limited availability as it currently only operates in 60+ cities in 21 states. In Michigan it's only available in Lansing and Detroit.
- The company's flat-fee structure isn't the same in all their service areas so depending on your location, you may have to pay additional fees.
- If you're interested in showing your home through open houses, you're on your own. Redefy doesn't assist with open houses.
How Xome Works
Xome offers sellers an enticing offer. When you list with Xome you'll only pay a flat fee of $599 and 0% commission no matter how much your home sells for. You first provide your home information and a Xome Agent will reach out to you within a day to have you sign a listing agreement.
Then, your agent will arrange to have professional photos taken, provide a yard sign and lock box, and list your home on the MLS as well as the Xome Offer Marketplace, which is their own auction site.
Your agent will be the point of contact for any prospective buyers, handling any offers. Also, your Xome Agent will help you with any negotiations, paperwork, and closing.
- Of course, the biggest pro for Xome is the cost. With a 0% commission and low flat-fee of $599, you'll be able to save thousands in commission.
- Since Xome sellers pay no commission, the expense falls on the buyers. Buyers have to pay to enter the Xome Offer Marketplace or if they have an agent, they have to pay their commission. The extra cost can deter buyers and lead to lower offers.
Clever Real Estate
How Clever Real Estate Works
As a nationwide, online referral service, Clever connects sellers with a local, full-service real estate agent who will sell their home for a flat fee of $3,000 or 1% commission if the home sells over $350,000.
Clever only partners with top-rated, full-service real estate agents from major brands and regional brokerages such as Keller Williams, RE/MAX, and Century 21. Your Clever Partner Agent will help you throughout the entire selling process, providing the same services, support, and benefits of a traditional agent but at a fraction of the cost.
To list with Clever, fill out an online form for a free, no-obligation consultation. You can interview as many agents as you want until you find the best fit for your situation.
Your Partner Agent will provide staging tips, professional photos, a yard sign, lock box, and list your home on the MLS and hundreds of other sites. They'll help with negotiations, showings, inspections, and closings, navigating you through all aspects of selling your home.
- You'll connect with a local, experienced Partner Agent who provides all the exact same services as a traditional agent but for significantly less.
- All agents come from reputable brokerages and have at least over five years of full-time realtor experience.
- Buyers won't know you listed with a discount agent as your listing, yard sign, and other marketing materials will have your Partner Agent's local brokerage branding, not Clever's.
- Your Partner Agent will know your local market inside and out, giving them the expertise to competitively price your home and know what buyers are looking for in homes in your particular area.
- There's no limited service area — Clever operates all across the country, including Michigan.
If you're ready to save thousands on realtor fees, working with a flat-fee realtor is a great option.
And if you still want the same service, benefits, and support that comes with a traditional agent, get in touch with Clever to connect with a full-service Partner Agent who will work with you throughout the entire selling process but at a fraction of the cost.
FAQs About Flat-Fee Realtors in Michigan
Can I put my house on MLS without a realtor?
Not just anyone can list their home on the MLS. Only licensed real estate agents have direct access and are able to list homes on the MLS. You'll have to work with a real estate agent or pay a flat-fee MLS service to list your home.
How can I lower my realtor commission?
One of the best ways to lower your realtor commission is by working with a flat-fee realtor who will list your home for a fixed rate or a set low-commission rate. Many flat-fee realtors will provide the same services and support of a traditional real estate agent without the high 6% commission.
You can also attempt to negotiate with a traditional real estate agent to lower their commission. However, even if they do agree to lower their rate, you won't see the same savings as with a flat-fee agent who works for a pre-negotiated rate.
Another option is to forgo an agent altogether and sell your home on your own, or For Sale By Owner (FSBO) and you'll only be responsible for covering the buyer's agent's commission.
Do flat-fee MLS listings work?
They work insofar as your home will be listed on your local MLS. However, the services provided with many flat-fee MLS listings stop there. To attract legitimate buyers and sell your home quickly and for the optimal price, you'll need to do much more to market your home than simply listing on the MLS.
Do you need an MLS to sell your home?
Without listing your home on the MLS you'll have a much more difficult time trying to sell your home. The majority of potential buyers search for homes online on popular sites such as Zillow, Trulia, and Realtor.com. All of these sites get their listing information from the MLS.