Agent A-Team or Solo Superhero? Finding the Right Real Estate Partner for Your Selling Journey in Wildwood Florida
When it comes to selling your home in Wildwood, Florida,…
January 29, 2024
📝 Editor’s Note
As the real estate industry continues to evolve, companies like List With Clever are popping up left and right, claiming to offer better solutions for home sellers. But are they truly revolutionizing the game or simply following in the footsteps of giants like Redfin and Zillow? Let’s dive into the world of List With Clever to find out.
he Clever Advantage: Understanding the Business Model
List With Clever is a referral company that connects home sellers with full-service local real estate agents for a flat fee or reduced commission. Here’s how their pricing structure works:
- $3,000 listing fee for properties selling below $350,000
- 1% listing fee for properties at $350,000 or higher
But is it really that simple? Let’s explore the hidden costs and compare List With Clever to other alternatives in the market.
The Real Costs of Selling With List With Clever
Buyer’s Agent Commission: The Missing Piece of the Puzzle
While List With Clever boasts low listing fees, they don’t mention that sellers are still responsible for paying a buyer’s agent commission, typically around 3%. This means that in reality, sellers end up paying:
- 4% of the property value (3% buyer’s agent commission + 1% listing fee)
- 3% buyer’s agent commission + $3,000 listing fee
Comparing List With Clever to Redfin and Richr.com
List With Clever’s pricing model is similar to Redfin, which charges:
- 1.5% listing fee to sell with a Redfin agent
- 1% listing fee if you buy and sell with Redfin within 1 year
However, there’s a third alternative that lets you keep even more of your hard-earned equity: Richr.com, which allows you to:
- List your property for FREE on the MLS
- Stay in control of the sales process
Navigating the World of Real Estate Referral Companies
Are Real Estate Referral Companies Safe to Use?
Using a referral company like List With Clever isn’t inherently risky, but it’s essential to remember that their service quality relies on the agents they connect you with. Furthermore, they receive a referral fee from the agent, which means the agent earns less than the advertised commission, highlighting the fact that agent rates are negotiable.
Holding Referral Companies Accountable
When you choose to work with a referral company, it’s crucial to understand that they don’t have any direct responsibility for the level of service you receive, and they earn a commission on every home sale.
The Search for the Best Discount Brokerage
List With Clever vs. Upnest and Homelight
While List With Clever isn’t technically a discount brokerage, they connect clients with discount brokerages, similar to Upnest and Homelight. However, their competitors focus on general agents rather than discount agents.
Redfin: Pioneering the Discount Brokerage Movement
Redfin is a true discount brokerage, leading the charge in transforming the way we think about traditional 6% agent fees. They’ve paved the way for modern discount brokers and are currently the largest in the market.
The Takeaway: Weighing Your Options in Real Estate
Traditional Agent Services vs. Staying in Control
Regardless of whether you use List With Clever or one of its competitors, you’re still employing traditional agent services to sell your property, albeit at varying fees. If you’re keen on maintaining control over the sales process and maximizing your profit, consider listing your property for FREE on Richr.com.
Frequently Asked Questions (FAQs)
1. How does List With Clever make money?
List With Clever earns a referral fee from the real estate agents they connect you with. This means that the agent actually walks away with less than the advertised commission.
2. Are there any hidden fees when using List With Clever?
While List With Clever’s listing fees are transparent, they don’t mention that sellers are still responsible for paying a buyer’s agent commission, which is typically around 3%.
3. Can I negotiate agent rates myself, without using a referral company like List With Clever?
Yes, you can negotiate agent rates directly with agents. It’s important to understand that traditional 3% listing fees are no longer the standard, and sub-1% or flat fees are acceptable requests.
4. Are there any alternatives to List With Clever that let me maintain control of the sales process?
Yes, Richr.com allows you to list your property for FREE on the MLS while retaining control of the entire sales process.
5. How do I know if a referral company like List With Clever is the right choice for me?
Choosing a referral company largely depends on your preferences and priorities. If you want a low-cost, traditional agent service, List With Clever might be suitable for you. However, if you’re looking for more control over the sales process and want to save even more on fees, consider alternatives like Richr.com.
Conclusion: Making an Informed Decision in Real Estate
In summary, List With Clever offers a competitive alternative to traditional real estate agent services with reduced fees. However, it’s crucial to understand the hidden costs and weigh the benefits of working with a referral company against alternatives like Richr.com that allow you to list your property for free and stay in control of the sales process. By evaluating your priorities and considering all options, you can make the best decision for your real estate needs.
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