Our Transparent Approach: For Sale Listing Fees and the National Association of Realtors

At Ashman Realty Group, we believe in transparency and fairness when it comes to listing fees. In this blog post, we will discuss our policy and approach for listing a home for sale, while also addressing the National Association of Realtors’ rule against price setting of fees and the recent court case against them for just that. We aim to provide you with a comprehensive understanding of our approach and the industry guidelines we adhere to.

We understand that selling a home can be a significant financial decision, and we strive to make the process as stress free and affordable as possible for our clients. That’s why we have a flat 1% fee for listing a home for sale in the North Atlanta area. While we do have a minimum fee of $6500 to list a home for sale, this policy ensures that our clients can maximize their returns while receiving top-notch service from our experienced team of real estate professionals.

It’s important to note that the National Association of Realtors (NAR) has a strict rule against price setting of fees. This rule is in place to promote fair competition and prevent anti-competitive practices within the real estate industry. How then did it become common practice for many Brokers and Agents nationwide to charge 6% split between the listing and selling Brokers at 3% each?

That is just one question asked in the recent court case against prominent Brokerages and the National Association of Realtors. While the current ruling against NAR is likely to be appealed, the ruling determined that NAR and prominent Brokerages did collude to set pricing of commissions. The NAR’s rule against price setting of fees appears to have fallen short of its intended purpose which was to encourage real estate professionals to compete based on the quality of their services rather than the price they charge.

Unfortunately for NAR and prominent Brokerages, through required continuing education classes Agents and Brokers alike have been encouraged to sell the value that they bring to the transaction table in order to avoid having to discount their fees. This in our opinion is one reason why the NAR and prominent Brokerages may have been ruled against. This practice of encouragement to avoid discounting fees through education could be construed as a form of price fixing without having to coordinate or directly collude with one another to set a specific price.

Further it shows a borderline if not directly anti competitive nature by downplaying or attacking discount Brokers as inferior suppliers of the service. You may have heard things like ‘I can net you more money even with my higher fees’ or ‘we are recognized internationally and you deserve this level of attention’ or even ‘We go above and beyond.’ All of these comments are intended to imply their providing superior service over other Brokers. When I hear these comments it indicates to me the only salesmanship occurring is the Agent or Broker selling why you should pay more.

The fact of the matter is that Brokerages and Agents basically list and sell your home the same way. The home itself is the selling feature, and the buyer’s agent is technically the selling agent. Some Brokers/Agents may provide more services than others granted, but in general if the home is listed on the marketplace, it is priced appropriately, and it is presented well with its best features on display you can expect that the primary tasks and promises are being met across the board. Those that do not meet these tasks and promises aren’t likely to remain full time Realtors or Realtors at all.

We feel the same as many of you and those who brought the case against NAR. 3% to list a home for sale in North Atlanta and many other markets was an exorbitant amount for the services being provided. Broker listing fees should vary depending on the market valuation of the home. In lower end markets, 3% may be an appropriate fee for the service provided.

Our policy of charging a 1% fee for listing a home was put in place long before the recent court case against the National Association of Realtors, and it reflects our commitment to transparency and affordability. While adhering to the National Association of Realtors’ rule against price setting of fees, we ensure fair competition and provide our clients with the highest level of service.

If you’re looking to sell your home in the North Atlanta area, we invite you to experience our transparent approach and benefit from our dedicated team of real estate professionals. Contact us today to learn more about our services and how we can assist you in achieving your real estate goals.

Best regards,

Matt Ashman
President/Broker/CFO
Ashman Associates, Inc.