À La Carte

Michael Berg of Berg Properties, Inc. in Oak Park operates his business with à la carte offerings. Similar to a menu, and LaFido’s commission structure, Berg prices out what he can do to sell a client’s home, what those expenses will cost him out of pocket, and what he should charge to make a return on investment.

“We work with a lot of do-it-yourself types, investors and builders,” he says. “We provide an MLS listing for $295 and we have other services, like putting up yard signs and other marketing options. We do offer some help on pricing and send out CMAs. If it doesn’t work with us or they’re unhappy with my group’s services, we refer them to a top-selling agent in their area. If they sign with that agent, they get their money back from us.”

Berg Properties provides an entrance point for clients who don’t feel that they can afford traditional services. He focuses on short sale clients, but does provide traditional services for clients that want more attention. While his group works very hard to ensure excellent service – an assertion backed up by glowing online reviews – he gives all clients the choice for what they get when hiring him.

“Some people question the validity (of this commission model), but why wouldn’t I treat you the same and offer the same services, even if the home isn’t within a certain price point?” Berg says. “I dont think people should be treated differently when buying or selling in certain price points. Is that realistic? No – a lot of brokerages have minimums they charge. But because of that, I like to give clients a choice of what they want me to do for them, and show them what my commission will be depending on what they choose.”

Flat fee listing providers should be carefully researched before referring to a client who is underwater on their house or otherwise paralyzed by the prospect of committing to a commission. Another important thing to remind clients who are considering the prospect of flat fee listing is that all the legalities will be on their own shoulders. This topic comes up repeatedly on discussion boards and shouldn’t be taken lightly.

Whatever fee structure an agent chooses, they should focus on delivering what they’ve promised. That will lead to referral-based prospects, which are much less costly than those gained through advertising. Also, those prospects are more likely to turn into clients. There are lots of structures for listing agreements; it can be easy to get distracted by the latest trend, the new fee. But brokers who do the best choose a fee that they feel is appropriate, stand by it with confidence and do their best to serve up what they promise – all the way to closing time. CA