Flatfy (Pronounced Flat-Fee) is a real estate brokerage company targeting the "smart seller."
How it works:
The industry norm in Massachusetts- a listing agent charges a seller anywhere between 4 and 6% of the sale price to sell a house. This commission is sometimes split between a buyer's broker and the listing broker each receiving anywhere between 2 and 3%. So when a homeowner sells a house through a traditional listing broker- the homeowner will owe upwards of $30,000 in commission to a buyer's broker and/or a listing broker.
Instead of charging a percentage-based commission on the sale of a house, Flatfy charges a "Flat-Fee," saving the consumer thousands in the sale of a house for the same services offered by traditional brokers. Instead of charging the homeowner 6%($30,000)- Flatfy charges a flat rate fee of $5,000(+2% to buyer's broker if one is involved with the transaction) to list that same house which sells for $500,000.
Flatfy believes that this is a reasonable quote for the amount of time and effort required to list a house. Prospective homebuyers are more aware of "what is out there," during their home search and homeowners have grown weary of the high commissions for lack of "value-add" provided by listing agents.
Technology has given the prospective homebuyer an incredible amount of awareness as to pricing and availability of homes for sale.
It is supply and demand economics- if a house is listed appropriately, it will sell. This is the future of how real estate will be transacted. It is a concept that has caught on in western states and has not yet been introduced to the Greater Boston/Massachusetts market.