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Sure, Your agent is motivated to sell your home, but in what way do they want the sale to take place?

When selecting company to list your home for sale, you probably have 3 choices when it comes to the type of agent you select based upon the Fee Structure that they use and the resulting motivation that this may or may not cause the agent to have. The categories can be called a "full fee" approach, a "discounter fee" approach and a blend called a "flexible fee" approach.

The distinction between the different categories can be drawn in two main areas. 1.) How the Deal Comes Together & 2.) Who Finds the Buyer

A "discounter fee" approach real estate agent goes into the transaction with a fee that is reduced for the amount sought by the full fee agent. This is based upon a business model that guts the services that are going to be performed during the course of the listing period. In the end, this approach also will pay out more money to the party that is trying to negotiate against you, the buyers agent. This approach may be employed by agents that are looking to eventually "Double End" the transaction because there is more money available to the Buyers Agent as compared to the Sellers Agent. To me, this sounds like a conflict of interest, but that may just be me.

A "full fee" approach agent structures the commission charges that no matter how the deal comes together and with no concern as to which agent actually ends up working with the buyer of the property. In a dual agency setup the following may apply that, there is little motivation for a "Full Fee" agent to promote the property out to the buyer agent community because the Full Fee Agent may be looking to represent both the buyer of the property and you the seller of the property at the same time. If this is the case then the Agent is going to focus there efforts on trying to Attract Buyers Directly to themselves, relying on the Yard Sign, Open Houses & their own limited websites.

A flexible fee - choose your own commission approach agent will charge a predetermined, yet different amount dependent upon the way inwhich the transaction comes together. If the listing agent is able to attract the buyer directly then they get a minimal increase in the overall compensation, sometimes ranging up to 1% in addition to the amount being charged for listing the property. This is a far cry from the amount charged by the Full Fee agent that double ends the property and thus doubles the commission. This is also a lower amount than the Discounter charges for double ending the property..

With any of these services you want to make sure that only the fee is flexible & not the level of service. By doing this you can be assured that you as the home owner & seller are getting the best value for your dollars. Keep in mind that all of this is controlled and regulated by your own areas laws on agency and whether or not an agent can truly represent both parties to a transaction under a dual or designated representation agreement. Check to see what applies in your particular area.

Bottom Line, As with anything, if it sounds to good to be true, it probably is. Make sure that you select an agent and a structure when selling your home in Northern Virginia that provides you with the level of comfort that the agent is truly motivated to get your home sold and that you will be getting value for your commission dollars.