Houzeo review – should I use Houzeo’s flat fee?

Table of content

What is Houzeo Flat Fee Services?

Basic MLS Package

Standard MLS Package

Upgraded MLS Package

Premium MLS Package

Pros and Cons of Houzeo

Pros

Cons

Alternatives to Houzeo

Richr

Zillow

List with Freedom

Is Houzeo’s Flat Fee Worth It?

FAQ

What is Houzeo com?

How does houzeo work?

Is Houzeo free?

What is houzeo success fee agreement?

How are for sale by owners successfully marketing their home on a site for houses for sale? They enlist the services of an agent, post a sign on the lawn and hope for the best, or hire a flat fee brokerage like Houzeo. Before choosing which route to take, examining the fundamentals of houzeo reviews is a crucial first step in the decision-making process. After all – it’s a significant investment you’re parting with!

What is Houzeo Flat Fee Services?

Houzeo listings are obtained by sellers looking to pay a flat fee to put their home on the MLS themselves – your typical for sale by owner persona. Not only is it just a place to find houses for sale, but it’s a way to list house for sale by owner. Like most flat fee brokerages, they’re connected to the MLS and put the listing on places like Realtor.com, Redfin, Zillow and Trulia. While Houzeo claims to showcase the home to “100s” more, Richr is a comparable flat fee service that boasts over 750+ websites that the house will be marketed on.

As a studious homeowner that is exploring your options for making the most of your sale, here’s what you’ll be getting yourself into financially when listing your home with Houzeo:

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Basic MLS Package

Also known as their “Bronze” package, you’ll have to pay Houzeo fees of $199+ for the most basic services. They recommend that this suits property owners looking to offload their land or a lot. It only includes:

• 6 photo limit
• 3 month listing agreement to be showcased on the MLS
• $25 charged for changes made

Standard MLS Package

Houzeo considers this their “stress-free MLS package” at $299+, but it may not be as desirable as you think, considering the limitations. Selling your home on their Silver tier, you’ll get:

• 24 photo limit
• Ability to upload a virtual 3D and 2D tour
• 6 month listing agreement to be showcased on the MLS
• 10 changes included

Upgraded MLS Package

A more costly approach to Houzeo’s claimed “advanced FSBO Mls Package,” this $399+ only has a couple of extra bonuses that are included in the $100 upcharge. Their Gold tier includes:

• The maximum photo limit and ability to upload virtual 3D/2D tours
• 6 month listing agreement to be showcased on the MLS
• Access to federal and state disclosures
• 10 changes included

Premium MLS Package

At a whopping $999+, Houzeo’s Platinum package is considered their virtual full-service approach. This includes:

• Maximum photos and virtual tour uploads
• Pricing assistance
• Contract Review
• Unlimited listing terms and changes
• A yard sign
• Agent showings

Remember, regardless of what flat fee brokerage you decide to use to sell your home, you’ll likely be on the hook for getting any photography or media materials. A professional photographer and videographer is less expensive than an agent, there’s no doubt. Even though an agent would provide the marketing services for free – you’re ahead hiring them yourself. When people are browsing a website for houses for sale, you want to ensure your home stands out with top-notch visuals.

Another crucial component to note: There’s no such thing as a houzeo success fee. This means that regardless of whether your home sells or not, you’re on the hook for the payment of whatever package you choose as part of the houzeo pricing. When you list with Richr, you only pay $499 once you sell with title settlement included – a fee you’d be out of pocket for if listing with Houzeo anyway. Title settlement is not included in their offer and is a mandatory step in the transaction process.

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Pros and Cons of Houzeo

If you’re on houzeo com reviews, obviously, you’ll see nothing but good things. On their website, there are no houzeo complaints in sight, with a 4.9 rating and 1,483 reviews. Even with positive reviews, one verified reviewer, Mark Thomas, on August 20, 2021, stated he ended up hiring his own local agent for closing/title services because of the lack of support that Houzeo provided as a flat fee brokerage. Houzeo can be an excellent match for certain types of sellers, so looking at their pros and cons can help you decide if their business model is aligned with your needs.

Pros

• You can access everything online through a user-friendly dashboard
• Your home will be listed on popular websites like Zillow, Richr and Realtor.com
• There are no Houzeo hidden fees before your contract is signed; you know precisely what is included

Cons

• Minimal support when calling about issues with the home sale
• You still need to pay out the buyer’s agent, on average, 2-3%
• You’re on the hook for the payment regardless of if you sell or not
• You will have to arrange your closing/title services

David on Trustpilot also expressed the lack of support in his houzeo real estate reviews. His experience stated that what happens solely depends on the type of agent you’re assigned. Because the designated agent has to submit or approve your changes, it can take days for a price change to actually take effect if they are on vacation. This reputation will undoubtedly cause more houzeo complaints over time if overwhelmed agents cannot service the flat-fee clients they’re given.

Alternatives to Houzeo

Due to the houzeo funding you’ll have to scrape together in order to be able to list on the MLS at all, these are a few alternatives when considering selling your home without an agent.

Richr

The ultimate do-it-yourself brokerage with a high level of online concierge service, Richr’s happiness guarantee supports the sale and purchase of your home. While similarities include listing the house on MLS, the big difference between Houzeo and Richr – is Richr lets you do it for free. You don’t pay anything upfront when you put your home on the market. You can offer the buyer commission at any amount you’re comfortable with. Other benefits in their free package include:

• Unlimited photos
• Unlimited concierge support
• 12-month listing agreement
• No fees for changes
• Cancel anytime
• Real estate documents are provided

This easily compares to Houzeo’s $999+ package. For an even more robust service, you can hire Richr’s services from their next upgrade – Richr One. This includes your title services for just $499 when you sell.

Zillow

When considering Houzeo vs Zillow, they’re similar in allowing you to list your home without a Realtor, but there are a few differences in what options they offer sellers. For example:

• Zillow Offers enables buyers to have their home purchased directly from Zillow without putting it on the market
• Zillow allows you to put your home online for free, but it doesn’t syndicate anywhere else.
• Zillow pushes your listing to agents, bombarding you with calls that will expect you to pay their 3% commission.

List with Freedom

This minimalistic brokerage offers property owners packages that range from $89-295 that are similar in what they offer. Like Houzeo, you have comparable opportunities selling your home when hiring List with Freedom, such as:

• Having your home listed on the public MLS
• Listing term options of 6-12 months
• There are several photo options (only 1 is available for their cheapest package at $89, before 6 at the $149 tier).
• Deciding the buyer’s commission

Is Houzeo’s Flat Fee Worth It?

Considering if Houzeo’s Flat Fee is worth it depends on the type of home seller you want to be. While their digital hands-off approach appeals to some property owners, others prefer alternative methods that result in various outcomes. For example:

1. What is the goal of your home sale?

The goal of a property investor hoping to maximize their profits so they can invest into their next flip is different than a first-time seller that wants to ensure everything is taken care of from A-Z and they have someone’s expertise to lean on.

If selling for the highest amount is on the table, and you have a bit of time to dedicate to the showings, sales and paperwork, using a flat fee vendor like Houzeo or a free service like Richr will benefit you in the long run.

If you’re not ready to sift through Houzeo reviews, take the time to understand the paperwork, make calls to concierge support, and coordinate marketing such as photography and the write-up, you’re better off selling traditionally with an agent.

1. How Much Time Do You Have?

If paying $0 to list your home or a flat fee through Houzeo will jeopardize your job because of the time you need to dedicate to the sale, listing with a traditional agent may be the way to go. Don’t panic – you don’t need to spend 8 hours a day tied up on the phone to coordinate showings. Agent showing assistance is included with Houzeo’s $999+ package. Still, as long as you can dedicate at least 1-2 hours per day to answering emails and returning calls, you can be confident to use Richr’s $0 option with unlimited concierge support.

1. What kind of support do you require?

Different home sellers’ expectations on marketing differ and they must consider a few items before listing with Houzeo. If you’re in a luxury home or want to give your property the ultimate marketing exposure, you won’t find that with a flat fee company. These are the things you’ll have to forgo or coordinate yourself:

• Staging
• Photography
• Videography
• Brochures
• Magazine Ads
• Newspaper Ads
• Social Media Ads

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FAQ

What is Houzeo com?

Houzeo is an online digital platform that allows for sale by owners to list for a flat fee, regardless of if they sell or not. They have 4 packages available with different pricing that includes limitations on photography uploads, changes, paperwork, and more. During this process, homeowners are expected to coordinate their own closing/title settlement services. Buyers can also browse Houzeo homes for sale and any home connected to the MLS through the site.

How does houzeo work?

Houzeo helps property owners by paying a fee of $199-$999+ to list their homes on MLS within 24 hours. While you’re saving on the average 6% commission to a listing agent, keep in mind they pay the buying agent 3% of that. So you’re still on the hook for 50% of the commission you thought you were escaping. While everything is online and under your control, an agent is assigned to your sale to oversee any changes requested that will be processed on the MLS system.

Is Houzeo free?

The only time Houzeo is free is if you’re using the platform to browse homes online. If you’re using their services to sell your home, you’ll be paying anywhere from $199-$999+ with the average package at $399.

What is houzeo success fee agreement?

Houzeo does not operate through a success fee agreement but rather charges your credit card upfront for you to use its services. Whether you sell or not does not matter to them – they just want to gain your business while you list.

Home sellers are turning their hard-earned equity into an additional investment in their future by enlisting with services that have their financial best interests at heart. While Houzeo is a great low-cost option compared to a traditional agent, listing with Richr can provide you with exceptional service at a fraction of the cost. Explore your options for savings and start dreaming of your next dream location.