Why do real estate brokers agree to flat fee MLS listings?

[beer]

What's it in for real estate agents and brokers? Why would a NYC real estate firm agree to do flat fee MLS listings or Agent Assisted FSBO listings through Hauseit? For that matter, why would a real estate brokerage agree to only 1% commission on the sell side for full service?

What's in it for them?

[trav]

From what I've heard, it's because listings are always good for brokers to have. It brings tangential benefits like enhanced branding and referral opportunities for example. What if a neighbor sees what a good job the broker did and contacts them to sell their home as well? It must also be beneficial for brokers from a recruiting perspective to have more listings and perceived flow. Also, I'm sure it would be a nice touch if you worked with them on the buy side as well (and get a commission rebate through them). Plus, positive reviews and happy customers mean more referral opportunities and more customers period who see your review.

So just because a NYC broker isn't earning 6% doesn't mean it can't be a win win situation.

[HauseitAdmin]

Here is an example from one of our Agent Managed FSBO listings. Names changed. Thank you for being thoughtful in advance and putting in a good word for our partner brokers!

Email from a married couple, direct buyers, after learning that the listing already has TWO accepted offers:

We are fully approved (not just pre-approved) for financing. We have new born twins, so packing them up to see the place is a REAL event. To cut to the chase a bit, are the offers above asking, we wouldn’t be able to do that. Thanks for getting back so quickly. James

A perfect response from the owner / seller:

Matt, congrats on the twins! There are offers at, and above, ask price. Good luck with the rest of your search and please do let [partner broker firm name] know if you need any help finding other properties! Regards, Mark

A thank you email from our partner listing broker to the owner / seller:

Thank you for thinking of us Mark! This is a perfect example of how the Agent Assisted FSBO process can be a win win for both of us. Good luck in this week in getting in contract! Really great execution :-)