Full Service vs Limited Service
Over the course of the past few years, many sellers have had an increasing number of questions and concerns regarding the differences between limited service brokers and full service brokers. This article addresses this subject and some of the related issues.
What is a “Full Service Broker”?
Full Service Brokers, also known as “Traditional “brokers perform virtually all services related to buying and selling a home, including but not limited to…
For these efforts, real estate brokers typically charge a single fee (the commission) that is 5% to 7% of the sales price of the home.
What is a “Limited Service Broker”?
Limited-service brokers are licensed brokers who offer their seller-clients something different from the traditional full range of brokerage and related administrative services. These brokers may provide little or no property marketing or brokerage services other than submitting the property listing to the Multiple Listing Service (MLS). The seller then is obligated in the listing to pay a co-broke fee to any cooperating broker who procures the buyer. Fee-for-service brokers, on the other hand, offer different levels of services, and may or may not provide other marketing services, provide forms, look for information, assist with disclosures, conduct showings, participate in negotiation, help with offer implementation and render closing assistance.
Note: Because they do not offer the full range of services that a full service broker would, they have been designated “limited service brokers.” This characterization is not intended and should not be understood to demean or criticize this practice, but only to distinguish the practice from more traditional real estate services that might commonly be known as “full service” listings.
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